Equidam
APRIL 26, 2025
revenue multiple, ARR multiple, EBITDA multiple) derived from recent acquisitions or funding rounds of supposedly similar companies. This incorporates the risk-free rate, a market risk premium specific to the company’s country, and Beta ($beta$). Beta measures the volatility of the company relative to the market.
Musings on Markets
JANUARY 10, 2025
Beta & Risk 1. EBIT & EBITDA multiple s 5. Since I update the data only once a year, it will age as we go through 2025, but that aging will be most felt, if you use my pricing multiples (PE, PBV, EV to EBITDA etc.) Return on Equity 1. Debt Ratios & Fundamentals 1. Debt Details 1. Buybacks 2. Equity Risk Premiums 2.
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Musings on Markets
MAY 20, 2022
In a final assessment, I break down companies based upon operating cash flows (EBITDA as a percent of enterprise value) and dividend yield (dividends as a percent of market capitalization). On bond ratings, there is no discernible link between ratings and returns, until you get to the lowest rated bonds (CCC & below).
Equidam
APRIL 26, 2025
This potential is typically evaluated through assumptions about future growth trajectories, often modeled via projected revenue growth or, in more mature markets, EBITDA projections. However, in the practical, often more uncertain world of venture capital, the focus shifts towards assessing a startup’s exit potential.
Brian DeChesare
SEPTEMBER 13, 2023
Its financial profile now looks like this: Its Debt / EBITDA is now 10x, its EBITDA / Interest has fallen below 1x, the Secured Debt is trading at 90% of its face value, and the Unsecured Debt is down to 60%. A few years later, the company’s industry declined, and it was slow to cut costs and enter new markets.
Musings on Markets
JANUARY 5, 2024
Beta & Risk 1. EBIT & EBITDA multiple s 5. Working capital needs Thus, I compute pricing multiples based on revenues (EV to Sales, Price to Sales), earnings (PE, PEG), book value (PBV, EV to Invested Capital) or cash flow proxies (EV to EBITDA). Return on Equity 1. Debt Ratios & Fundamentals 1. Debt Details 1.
Musings on Markets
JANUARY 6, 2023
By the same token, it is impossible to use a pricing metric (PE or EV to EBITDA), without a sense of the cross sectional distribution of that metric at the time. For example, I have seen it asserted that a stock that trades at less than book value is cheap or that a stock that trades at more than twenty times EBITDA is expensive.
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