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Japan Megabanks’ Strategic Share Sale Marks Big Priority Shift

Global Finance

The plan by the Big Three banks to unwind their cross-shareholdings points to a long-awaited turn to better corporate governance. As such, the big banks’ pledges suggest that Japanese business is taking the need for change seriously, Wu says. The announcements in June by Japan’s three megabanks that they will sell $5.4

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EV/EBITDA Explained: A Key Valuation Multiple for Investors

Valutico

It is generally not suitable for valuing banks and financial institutions and early stage companies. Interest Expense: This represents the cost of borrowing money, such as the interest accrued on bank loans or equipment financing. Other metrics like Price-to-Book or Dividend Yield are typically more relevant for these sectors.

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Market Resilience or Investors In Denial? A Mid-year Assessment for 2023!

Musings on Markets

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.

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29 Valuation Interview Questions and Answers: Mastering the Art of Crackling Interviews

Equilest

Uncover the intricacies of financial modeling, from understanding fundamental concepts like Free Cash Flow to Firm and Dividend Discount Model, to navigating advanced methodologies such as LBO and DCF. These interviews are not just a mere formality but a critical component of the hiring process in finance, investment banking, and consulting.

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Good (Bad) Banks and Good (Bad) Investments: At the right price.

Musings on Markets

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!

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Data Update 1 for 2021: A (Data) Look Back at a Most Forgettable Year (2020)!

Musings on Markets

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. The first is that I do not have a macro focus, and my interests in macro variables occur only in the context of corporate finance or valuation issues.

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Data Update 2 for 2022: US Stocks kept winning in 2021, but…

Musings on Markets

When you augment this price change with the dividends on the index during 2021, the total return on the S&P 500 for 2021 was 28.47%. The results are similar if you break stocks down based upon price to book ratios or revenue growth rates.