Valutico

AUGUST 17, 2022

As some recent start-up valuations are falling amidst investor caution, this new development comes at an opportune time to positively impact how effectively financial firms value young businesses. The calculation of these discount rates are based on the observed betas of similar listed peer companies.

Start-ups 52

Start-ups EBIT Weighted Average Cost of Capital Discounted Cash Flow 52

Musings on Markets

JANUARY 6, 2023

Thus, without a sense of what comprises a high or low profit margin for a firm, or what the cost of capital is for the typical company, it is easy to create "fairy tale" valuations and analyses. Check rules of thumb : Investing and corporate finance are full of rules of thumb, many of long standing. EV/EBIT and EV/EBITDA 4.

Risk Premium 52

Risk Premium Dividends EBITDA Start-ups 52

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. Standard Deviation in Equity/Firm Value 2. Book Value Multiples 3. Buybacks 2.

Dividends 98

Dividends Risk Premium Equity Book Value 98