Musings on Markets

FEBRUARY 8, 2022

At the risk of provoking the ire of those who dislike portfolio theory, the most widely model for risk, in practice, is the capital asset pricing model, and beta is the relative risk measure. At the start of 2022, the ten sectors (US) with the highest and lowest relative risk (unlettered betas), are shown below.

Risk Premium 92

Risk Premium Beta Start-ups Equity 92

Andrew Stolz

MARCH 20, 2020

Usually, the retail investors or institutional investors would look only for capital gains or regular income in the form of dividends while investing and would not generally look to buy stocks in larger quantities so as to get a controlling stake over the company. In practice, it is difficult for the firm to maintain its capital structure.

Beta 52

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

Musings on Markets

JANUARY 5, 2024

I have also developed a practice in the last decade of spending much of January exploring what the data tells us, and does not tell us, about the investing, financing and dividend choices that companies made during the most recent year. Beta & Risk 1. Dividends and Potential Dividends (FCFE) 1. Return on Equity 1.

Dividends 106

Dividends Risk Premium Equity Book Value 106

Valutico

APRIL 17, 2023

This model takes into account a variety of factors, such as risk-free rate, beta, and expected market returns. Finally, tax rate (T) represents taxes associated with interest payments on debt or dividends on equity. Beta factor: The beta factor is part of the Weighted Average Cost of Capital (WACC). A beta of 1.0

Weighted Average Cost of Capital 52

Weighted Average Cost of Capital Discounted Cash Flow Beta Risk-free Rate 52

Valutico

APRIL 17, 2023

This model takes into account a variety of factors, such as risk-free rate, beta, and expected market returns. Finally, tax rate (T) represents taxes associated with interest payments on debt or dividends on equity. Beta factor: The beta factor is part of the Weighted Average Cost of Capital (WACC). A beta of 1.0

Weighted Average Cost of Capital 52

Weighted Average Cost of Capital Discounted Cash Flow Beta Risk-free Rate 52

Valutico

APRIL 12, 2023

This model takes into account a variety of factors, such as risk-free rate, beta, and expected market returns. Finally, tax rate (T) represents taxes associated with interest payments on debt or dividends on equity. Beta factor: The beta factor is part of the Weighted Average Cost of Capital (WACC). A beta of 1.0

Weighted Average Cost of Capital 52

Weighted Average Cost of Capital Discounted Cash Flow Beta Risk-free Rate 52

Musings on Markets

JANUARY 6, 2023

At the company-level, I provide data on risk, profitability, leverage and dividends, broken down by industry-groups, to be used in both corporate finance and valuation. Financing Flows Accounting Returns Dividends & Ownership Risk Premiums 1. Dividend Payout & Yield 1. Dividends/FCFE & (Dividends + Buybacks)/ FCFE 2.

Risk Premium 52

Risk Premium Dividends Start-ups EBITDA 52

Musings on Markets

JANUARY 31, 2024

Your answer to that question will determine not just how you approach running the business, but also the details of how you pick investments, choose a financing mix and decide how much to return to shareholders, as dividend or buybacks.

Equity 82

Equity Book Value Start-ups Corporate Finance 82

Brian DeChesare

AUGUST 31, 2022

For simplicity, I am ignoring the interest, dividends, borrowing costs, and other fees, but this example is the general idea with convertible arbitrage. If you purchased $2,000 of convertible bonds and short-sold $1,060 of shares, following the initial ~53% delta: The convertible bond would now be worth $5.4 billion, up from $4.7

Banking 89

Banking Risk-free Rate Equity Start-ups 89

Benzinga

JULY 26, 2022

The efficiency ratio in the low sixties reflects the team's focus on expense management and benefited from an improving net interest margin bolstered by deposit betas better than what we model. million, or 47%, increase in total interest and dividend income, while total interest expense was unchanged. Dividends. .

Banking 40

Banking Dividends Marketability Equity 40

Musings on Markets

JANUARY 12, 2021

Thus, you and I can disagree about whether beta is a good measure of risk, but not on the principle that no matter what definition of risk you ultimately choose, riskier investments need higher hurdles than safer investments.

Corporate Finance 52

Corporate Finance Start-ups Finance Marketability 52

Musings on Markets

JANUARY 28, 2024

In short, if you don't like betas and have disdain for modern portfolio theory, your choice should not be to abandon risk measurement all together, but to come up with an alternative risk measure that is more in sync with your view of the world.

Risk Premium 121

Risk Premium Beta Start-ups Equity 121

Brian DeChesare

AUGUST 10, 2022

Complications arise because the dividend payouts do not necessarily follow this 2% / 98% split; there’s usually a set of “tiers” with performance incentives, and the split changes in each tier, similar to the real estate waterfall model. The entire Energy Services vertical is like a “high Beta” play on oil and gas prices.

Banking 98

Banking Dividends EBITDA Equity 98