Andrew Stolz

MARCH 20, 2020

Under the cost method, the investment value remains unchanged in the books, whereas under the equity method, the value is initially recorded at cost, but is subsequently adjusted for the gains/losses of the investee company according to the parent company’s shareholding percentage. It tends to add debt beyond the optimal capital structure.

Beta 52

Beta Risk-free Rate Capital Structure Weighted Average Cost of Capital 52

Brian DeChesare

SEPTEMBER 13, 2023

However, various books and textbooks have defined “distressed” as follows: Debt Discounts – If Secured Debt is trading in the low 90% range or below, or Unsecured Debt is trading in the 60-70% range or less, it’s typically distressed. A sharply declining stock price does not necessarily mean a company is “distressed.”

Equity 103

Equity Banking EBITDA Start-ups 103

Brian DeChesare

MAY 24, 2023

Capital Structure Trades – Or you could focus on Jacobs’ ~$4 billion in debt and long or short some of their bonds (or use credit default swaps) if you believe its credit rating will change once the deal takes place. But lock-up periods are longer than most long/short equity funds.

Equity 64

Equity Start-ups EBITDA Banking 64

Valutico

OCTOBER 20, 2022

B = Beta. (Rm DCF WACC—similar to the above except that it calculates a different WACC in each forecast period based on a changing capital structure (D/E) and thus a changing beta in each period. Try booking a demo , if this applies to you. Ce = Cost of Equity. Rf = Risk-free Rate. Cp = Cost of Equity Premium.

Discounted Cash Flow 52

Discounted Cash Flow Terminal Value Weighted Average Cost of Capital Net Present Value 52

Appraiser Newsroom

JUNE 4, 2024

He is member of the Beta Gamma Sigma Honor Society, Financial Executives International, and the National Association of Corporate Directors (NACD). Dr. Everett also has an M&A Advisory and business valuation practice. He specializes in the valuations of business enterprises and their intangible assets.

Business Valuation 59

Business Valuation Intangible Assets Appraisal Finance 59

Musings on Markets

FEBRUARY 27, 2023

Book versus Market : The book debt ratio is built around using the accounting measure of equity, usually shareholder's equity, as the value of equity. The market debt ratio, in contrast, uses the market's estimate of the value of equity, i.e., its market capitalization, as the value of equity.

Equity 52

Equity EBITDA Start-ups Net Debt 52

Brian DeChesare

AUGUST 10, 2022

The entire Energy Services vertical is like a “high Beta” play on oil and gas prices. The tricky part is understanding the MLP structure and the tax, dividend, and capital structure differences that it creates. Example Valuations, Pitch Books, Fairness Opinions, and Investor Presentations.

Banking 98

Banking Dividends EBITDA Equity 98