Valutico

APRIL 25, 2023

All finance professionals who value companies, such as accountants, auditors, tax advisors, M&A professionals, investment managers, corporate finance advisors, and banks who want to consider ESG factors as part of their decision-making process, especially as an input to the valuation. Who is ValutECO for?

Discounted Cash Flow 52

Discounted Cash Flow Equity Beta Alpha 52

Musings on Markets

FEBRUARY 27, 2023

If you have taken a corporate finance class sometime in your past life are probably wondering how this approach reconciles with the Miller-Modigliani theorem, a key component of most corporate finance classes, which posits that there is no optimal debt ratio, and that the debt mix does not affect the value of a business.

Equity 52

Equity EBITDA Start-ups Net Debt 52

Musings on Markets

FEBRUARY 8, 2022

Risk and Hurdle Rates In investing and corporate finance, we have no choice but to come up with measures of risk, flawed though they might be, that can be converted into numbers that drive decisions. In corporate finance, this takes the form of a hurdle rate , a minimum acceptable return on an investment, for it to be funded.

Risk Premium 67

Risk Premium Beta Start-ups Equity 67

Brian DeChesare

AUGUST 31, 2022

Here’s how Nicholas Investment Partners describes its strategy : 4) Beta – Convertible arbitrage is right in the middle of hedge fund strategies , with a decent correlation to bonds (0.40) and less of a correlation to equities (0.20). Convertible Securities: A Complete Guide to Investment and Corporate Financing Strategies.

Banking 73

Banking Risk-free Rate Equity Start-ups 73

Musings on Markets

JANUARY 31, 2024

In fact, that objective of value maximization drives every aspect of the business, as can be seen in this big picture perspective in corporate finance: For some companies, especially mature ones, value and profit maximization may converge, but for most, they will not.

Equity 79

Equity Book Value Start-ups Corporate Finance 79

Musings on Markets

JANUARY 5, 2024

In my corporate finance class, I describe all decisions that companies make as falling into one of three buckets – investing decisions, financing decision and dividend decisions. Beta & Risk 1. Financing Flows 5. Return on Equity 1. Debt Ratios & Fundamentals 1. Debt Details 1. Buybacks 2. Tax rates 4.

Dividends 98

Dividends Risk Premium Equity Book Value 98

Musings on Markets

JANUARY 6, 2023

Check rules of thumb : Investing and corporate finance are full of rules of thumb, many of long standing. The second is that in my line of work, which is corporate finance and valuation, the numbers I need lie in micro or company-level data, not in the macro space. Cost of Equity 1. PE & PEG 2. Cost of Debt 2.

Risk Premium 52

Risk Premium Dividends EBITDA Start-ups 52

Brian DeChesare

AUGUST 10, 2022

The entire Energy Services vertical is like a “high Beta” play on oil and gas prices. If you want to stay in energy, pretty much anything is open to you: private equity, hedge funds, corporate development, corporate finance, etc. Another option might be to transfer into a generalist IB industry group.

Banking 94

Banking EBITDA Dividends Equity 94

Brian DeChesare

SEPTEMBER 13, 2023

You will not be a good candidate for venture capital, growth equity, or corporate finance roles because the skill sets are too different. Normal industry groups in investment banking and corporate development jobs might also be difficult because you could be perceived as overly specialized.

Equity 96

Equity Banking EBITDA Start-ups 96

Brian DeChesare

JULY 27, 2022

4) Moderate Net Exposure and Beta – Most credit funds are in the middle of the pack here, with Betas to equities and bonds in the 0.4 – 0.5 Second, you don’t position yourself very well for roles at normal companies, such as corporate development and corporate finance , because the skill sets are not related.

Equity 52

Equity Start-ups Private Equity Firm Beta 52