Brian DeChesare

MAY 3, 2023

Step 4: Discount the Dividends and Terminal Value to Present Value and Add Them This is like the final step of a DCF, but you use the Cost of Equity since the Dividend Discount Model is based on Equity Value, not Enterprise Value. DTM’s Levered Beta at this time was only 0.80, but I increased it to 1.00

Dividends 64

Dividends Terminal Value Enterprise Value Equity 64

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).

Price to Book 96

Price to Book Dividends Beta Equity 96

Musings on Markets

FEBRUARY 27, 2023

Cash generating capacity : Debt payments are serviced with operating cash flows, and the more operating cash flows that firms generate, as a percent of their market value, the more that they can afford to borrow.

Equity 52

Equity EBITDA Start-ups Net Debt 52

Valutico

OCTOBER 20, 2022

B = Beta. (Rm Discount the Terminal Value. . Add up all the figures you have to arrive at the Net Present Value. Depending on the exact methodology and discount rate used, this could be the Enterprise Value or Equity Value. Therefore, we can put in the following values: Equity. Enterprise Value.

Discounted Cash Flow 52

Discounted Cash Flow Terminal Value Weighted Average Cost of Capital Net Present Value 52

Musings on Markets

JANUARY 6, 2023

I also report on pricing statistics, again broken down by industry grouping, with equity (PE, Price to Book, Price to Sales) and enterprise value (EV/EBIT, EV/EBITDA, EV/Sales, EV/Invested Capital) multiples. Cost of Equity 1. PE & PEG 2. Standard deviation in stock price 2. Cost of Debt 2. Price to Book 3. Cost of Capital 3.

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.

Marketability 86

Marketability Start-ups Equity Price to Book 86