Reynolds Holding

JULY 13, 2023

By brand ambassadors I mean loyal customers or clients, the type that a company can rely upon for word-of-mouth and social media advertising, beta testing, and such. By definition, they are not household names and need to market and promote the company to potential customers, clients, employees, and others.

Beta 52

Beta Marketability Compliance Equity 52

Musings on Markets

FEBRUARY 10, 2021

There are multiple definitions that you will see offered, from it being the cost of raising capital for that business to an opportunity cost , i.e., a return that you can make investing elsewhere, to a required return for investors in that business. What is a hurdle rate for a business? More on that issue in a future data update post.)

Risk-free Rate 52

Risk-free Rate Risk Premium Start-ups Equity 52

Musings on Markets

JANUARY 12, 2021

If it looks like I am over reaching, I start my corporate finance class with the simple proposition that any decision that involves money is a corporate finance decision, and by that definition everything that businesses do falls under its umbrella. The links to all of these classes are at the end of this post.

Corporate Finance 52

Corporate Finance Start-ups Finance Marketability 52

Musings on Markets

FEBRUARY 8, 2022

In this post, I will start with a working definition of riskt that we can get some degree of agreement about, and then look at multiple measures of risk, both at the company and country level. At the start of 2022, the ten sectors (US) with the highest and lowest relative risk (unlettered betas), are shown below.

Risk Premium 67

Risk Premium Beta Start-ups Equity 67

Brian DeChesare

NOVEMBER 9, 2022

Sales & Trading Exit Opportunities Definition: An S&T “exit opportunity” is a different field that you enter after working in sales & trading for a few years; common examples are hedge funds , proprietary trading , middle office roles , and investor relations.

Banking 69

Banking Equity Start-ups Marketability 69

Brian DeChesare

AUGUST 31, 2022

But before delving into the best candidates for these roles, typical trades, careers, and more, let’s start with the basic definitions: What is a Convertible Arbitrage Hedge Fund? Convertible bonds are hybrid instruments with elements of debt and equity, and some groups that trade convertible bonds also combine elements of S&T and IB.

Banking 64

Banking Risk-free Rate Equity Start-ups 64

Musings on Markets

FEBRUARY 27, 2023

While accountants, CFOs and bankers are fond of the book value measure, almost everything in corporate finance revolves around market value weights, including the debt to equity ratios we use to adjust betas and costs of equity and the debt to capital ratios used in computing the cost of capital.

Equity 52

Equity EBITDA Start-ups Net Debt 52

Brian DeChesare

JUNE 29, 2022

Activist Hedge Fund Definition: An activist hedge fund accumulates sizable stakes in companies to gain operational/financial influence and persuades Boards and management teams to enact their desired changes; they profit based on increases in companies’ stock prices after these changes take place.

Private Equity Firm 52

Private Equity Firm Equity Banking Start-ups 52

Brian DeChesare

JULY 19, 2023

I’ll answer both questions here, but I want to start with a few definitions: What is a Long-Only Hedge Fund? But this is extremely difficult because very few sizable companies have negative Betas – and when they do, it’s usually due to an anomaly or special situation.

Equity 52

Equity Beta Banking Start-ups 52

Brian DeChesare

SEPTEMBER 13, 2023

Distressed Debt Hedge Funds Definition: Distressed debt hedge funds buy and sell debt that is trading at a steep discount to face value, such as 40%+, and make money by betting on changes in the price of this debt or using it to gain influence in a restructuring or bankruptcy process.

Equity 83

Equity Banking EBITDA Start-ups 83

Brian DeChesare

MAY 24, 2023

But, as usual, I want to start with the definitions and fund types: What is an “Event-Driven Hedge Fund”? I’ll do a deep dive into the entire space in this article, including the top funds, example trades, recruiting, exit opportunities, and more. But lock-up periods are longer than most long/short equity funds.

Equity 64

Equity Start-ups EBITDA Banking 64

Brian DeChesare

AUGUST 10, 2022

Oil & Gas Investment Banking Definition: In oil & gas investment banking, professionals advise companies that search for, produce, store, transport, refine, and market energy on raising debt and equity and completing mergers and acquisitions. The entire Energy Services vertical is like a “high Beta” play on oil and gas prices.

Banking 82

Banking EBITDA Dividends Equity 82

Brian DeChesare

JULY 27, 2022

Credit Hedge Fund Definition: Credit hedge funds buy and sell fixed-income securities, such as high-yield bonds, distressed bonds, structured credit, and their derivatives; they profit by setting up trades that reduce one type of credit risk while betting on mispriced securities whose prices are likely to change in the future.

Equity 52

Equity Start-ups Private Equity Firm Beta 52

Brian DeChesare

DECEMBER 6, 2023

Beta-Neutral Portfolios: For example, if the S&P 500 goes up or down by 5%, your team’s portfolio should move by ~0%. Most funds run market-neutral strategies to achieve this (more on hedge fund strategies ).

Start-ups 85

Start-ups Beta Marketability Comps 85

Musings on Markets

JANUARY 6, 2023

YouTube Video Links Current data from January 2023 (on my webpage) Archived data (on my webpage) Variable definitions. Cost of Equity 1. PE & PEG 2. Standard deviation in stock price 2. Cost of Debt 2. Price to Book 3. Standard deviation in operating income 3. Cost of Capital 3. EV/EBIT and EV/EBITDA 4.

Risk Premium 52

Risk Premium Dividends EBITDA Start-ups 52

Musings on Markets

JULY 22, 2021

Raising or lowering the cost of capital has an effect on value, but changing my assumptions about risk premiums, betas or debt ratios has a much smaller effect that changing assumptions that alter cash flows. The Zomato IPO clocks in at 420 pages , much of it designed to bore readers into submission.

Marketability 86

Marketability Start-ups Equity Price to Book 86

Value Scope

SEPTEMBER 24, 2020

Fixed definitions are hard to come by, and the scattering of websites, scorecards, speeches, podcasts, and white papers that mention ESG in many different ways do not help. Adjustments to Beta can accomplish this. For example, in a recent valuation we completed, the mean unlevered Beta of a group of 10 comps was 0.58.

Intangible Assets 130

Intangible Assets Alpha Beta Marketability 130

FE International

MARCH 14, 2018

For both paid and shared AMIs, developers must meet the following criteria : Sell publicly available, full-feature production-ready software (not a beta product). By definition, SaaS applications are monetized on a subscription basis, with customers typically paying a monthly sum based on which “tier” of membership they have opted for.

Marketability 52

Marketability Start-ups EBITDA Business Valuation 52