Valutico

MAY 19, 2025

The multiple indicates relative value; interpretation requires comparing it to industry peers, historical trends, and considering the company’s growth prospects, risk, and market conditions. It is generally not suitable for valuing banks and financial institutions and early stage companies.

EBITDA 52

EBITDA Enterprise Value Capital Structure EBIT 52

Musings on Markets

JULY 17, 2023

That does not surprise me, since I have never bought into the “Fed did it” theme, and have written multiple posts about why it is inflation and economic growth that drive interest rates, not central banks. Financials, handicapped by the bank runs at SVB and First Republic, have been flat for the year, as has been real estate.

Marketability 98

Marketability Risk Premium Start-ups Treasury 98

Equilest

NOVEMBER 25, 2023

These interviews are not just a mere formality but a critical component of the hiring process in finance, investment banking, and consulting. How to Value a Bank? Emphasizing Unique Considerations: Valuing a bank requires a distinct approach due to the nature of its operations.

Discounted Cash Flow 52

Discounted Cash Flow Dividends Enterprise Value Terminal Value 52

Valutico

MAY 6, 2024

Market-based methods like Comparable Companies Analysis and Precedent Transactions Analysis offer relative measures of value based on market data. Income-based methods such as Discounted Cash Flow analysis focus on future cash flows to determine value.

Discounted Cash Flow 52

Discounted Cash Flow Precedent Transaction Analysis Weighted Average Cost of Capital Comparable Company Analysis 52

Musings on Markets

JANUARY 9, 2021

Consider, for instance, an investor who picks stocks based upon price to book ratios, who finds a stock trading at a price to book ratio of 1.5. buy stocks that trade at less than book value or trade at PEG ratios less than one) for individual stocks.

Risk Premium 52

Risk Premium Market Capitalization Equity Start-ups 52

Musings on Markets

MAY 7, 2023

I also used the banking framework to argue that good banks have stickier deposits, with a higher precent of these deposits being non-interest bearing, that they invest in loans and investment securities on which they earn interest rates that cover and exceed the default risk in these investments. All Equity, All the time!

Banking 86

Banking Price to Book Dividends Book Value 86

Musings on Markets

FEBRUARY 4, 2023

The PE ratio for the stock has gone from a modest 15 times earnings in the 2016-21 time period to 214 times earnings in the most recent two years, and the enterprise value has jumped from about 12 times EBITDA during 2016-21 to 53 times EBITDA in the most recent two years. times revenues in the most recent two years.

Start-ups 100

Start-ups Market Capitalization Marketability Equity 100