Value Scope

JULY 21, 2020

Click to Download: ESG Valuation Considerations – Top Down or Bottom Up? This work can be used to reconcile and support an adjustment to the CAPM, then the WACC, via Alpha and Beta. Adjustments to Beta can accomplish this. The re-levered Beta for the private company we were valuing was 0.56. Executive Summary.

Intangible Assets 130

Intangible Assets Beta Alpha Unlevered Beta 130

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 93

Risk Premium Beta Start-ups Equity 93

Andrew Stolz

FEBRUARY 4, 2022

Download the full report as a PDF. The company is highly cyclical reflected in the above-average beta of 1.25x. Download the full report as a PDF. Highlights: Heavy gov’t spending on infrastructure drives top-line growth. Costs cuts to drive sustainably higher margins. Strong ROE and ROIC might be overlooked by the market.

Start-ups 52

Start-ups Net Debt Beta Equity 52

Musings on Markets

FEBRUARY 10, 2021

I know that many of you are not fans of modern portfolio theory or betas, but ultimately, there is no way around the requirement that you need to measure how risky a business, relative to other businesses. Download country ERPs What does this mean? (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

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 67

Risk Premium Beta Start-ups Equity 67

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

Musings on Markets

JANUARY 12, 2021

Last week, was my data week, where I download and analyze data on all publicly traded companies, listed anywhere in the world, and I will post extensively on what the numbers look like after a most tumultuous year. As we approach the turn of the calendar year, I have my own set of rituals that prepare me for the new year.

Corporate Finance 52

Corporate Finance Start-ups Finance Marketability 52