Brian DeChesare
MAY 3, 2023
The DDM is more grounded because it’s based on the company’s actual distributions and potential future value. And it values the company today based on the present value of its dividends and that potential future value (either the stock price or the Equity Value via the Terminal Value calculation).
Musings on Markets
MAY 20, 2022
In my last post , I discussed how inflation's return has changed the calculus for investors, looking at how inflation affects returns on different asset classes, and tracing out the consequences for equity values, in the aggregate.
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Musings on Markets
FEBRUARY 27, 2023
To fund the business, you can either use borrowed money (debt) or owner's funds (equity), and while both are sources of capital, they represent different claims on the business. Even government-owned businesses fall under its umbrella, with the key difference being that equity is provided by the taxpayers.
Valutico
OCTOBER 20, 2022
Ce = Cost of Equity. B = Beta. (Rm Rm – Rf) = Equity Market Risk Premium. Cp = Cost of Equity Premium. Ce = Cost of Equity. E = Equity . Discount the Terminal Value. . Add up all the figures you have to arrive at the Net Present Value. Cost of Equity. This is: Debt / Debt + Equity.
Musings on Markets
JANUARY 6, 2023
I do report on a few market-wide data items especially on risk premiums for both equity and debt. 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. PE & PEG 2.
Musings on Markets
JULY 22, 2021
Uber's ownership in Zomato is a result of Zomato's acquisition of Uber Eats India, where Uber received a share of Zomato's equity in exchange. billion), translating into a value per share of 41 INR.
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