Beta Equity Market Capitalization 
Musings on Markets
JANUARY 10, 2025
Thus, as you peruse my historical data on implied equity risk premiums or PE ratios for the S&P 500 over time, you may be tempted to compute averages and use them in your investment strategies, or use my industry averages for debt ratios and pricing multiples as the target for every company in the peer group, but you should hold back.
Musings on Markets
FEBRUARY 8, 2025
The Hurdle Rate - Intuition and Uses You don't need to complete a corporate finance or valuation class to encounter hurdle rates in practice, usually taking the form of costs of equity and capital, but taking a finance class both deepens the acquaintance and ruins it. Corporate Default Risk , i.e,
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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.
Musings on Markets
JANUARY 5, 2024
Since I am lucky enough to have access to databases that carry data on all publicly traded stocks, I choose all publicly traded companies, with a market price that exceeds zero, as my universe, for computing all statistics. Beta & Risk 1. Return on Equity 1. Equity Risk Premiums 2. Return on (invested) capital 2.
Appraisal Rights
JUNE 5, 2017
In selecting the appropriate equity risk premium, the court observed that whether to use supply-side or historical ERP should be determined on a case-by-case basis. With regard to beta, the court found fault with both side’s approach.
Musings on Markets
NOVEMBER 1, 2023
To deliver this growth, I did assume that Tesla would have to invest large amounts of capital in capacity, and that this would create a significant drag on value, resulting in a equity value of just under $10 billion.
Musings on Markets
JANUARY 6, 2023
Data universe : In my sample, I include all publicly traded firms with market capitalizations that exceed zero, traded anywhere in the world. I do report on a few market-wide data items especially on risk premiums for both equity and debt. Cost of Equity 1. Cost of Capital 3. Return on Equity 1.
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