Musings on Markets

FEBRUARY 8, 2022

In the first few weeks of 2022, we have had repeated reminders from the market that risk never goes away for good, even in the most buoyant markets, and that when it returns, investors still seem to be surprised that it is there.

Risk Premium 92

Risk Premium Beta Start-ups Equity 92

Value Scope

JULY 21, 2020

This work can be used to reconcile and support an adjustment to the CAPM, then the WACC, via Alpha and Beta. ESG in Equity Analysis and Credit Analysis” was published in 2018 by the PRI, the Principles of Responsible Investment arm of the UN, and the CFA Institute. Adjustments to Beta can accomplish this.

Intangible Assets 130

Intangible Assets Alpha Beta Unlevered Beta 130

Andrew Stolz

AUGUST 5, 2020

It helps an investor understand what to expect to earn in relation to the risk-free rate and the market return. If an investor moves money from the risk-free asset into the stock market, they should expect to earn a return in excess of the risk-free rate, what is called an equity risk premium. beta of a stock).

Risk-free Rate 52

Risk-free Rate Beta Weighted Average Cost of Capital Risk Premium 52

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.

Price to Book 103

Price to Book Dividends Beta Equity 103

Musings on Markets

JULY 22, 2021

Zomato, an Indian online food-delivery company, was opened up to public market investors on July 14, 2021, and its market debut is being watched for clues by a number of other online ventures in India, waiting in the wings to go public.

Marketability 99

Marketability Start-ups Equity Price to Book 99

Musings on Markets

JULY 13, 2022

Country Risk: Equity Risk For equity investors, the price of risk is captured by the equity risk premium, and equity risk premiums will vary across countries.

Risk Premium 103

Risk Premium Risk-free Rate Start-ups Equity 103

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. Factor 2: Market Opportunity The size and accessibility of the target market fundamentally define the potential scale of the venture. 50x or more).

Marketability 59

Marketability Technology Beta Start-ups 59

Valutico

FEBRUARY 27, 2024

Different types of discount rates such as risk-free rate, cost of equity, or cost of debt, are used contextually in financial analysis. Cost of Equity: The cost of equity represents the return required by equity investors to compensate them for the risk of owning a company’s shares.

Discounted Cash Flow 52

Discounted Cash Flow Risk Premium Risk-free Rate Beta 52

Musings on Markets

JANUARY 5, 2024

Thus, looking at only the companies in the S&P 500 may give you more reliable data, with fewer missing observations, but your results will reflect what large market cap companies in any sector or industry do, rather than what is typical for that industry.

Dividends 106

Dividends Risk Premium Equity Book Value 106

Valutico

APRIL 17, 2023

WACC considers the costs associated with different components of a firm’s capital structure, such as debt, equity, and preferred stock, and weighs them according to their proportion. It is a metric used to calculate the Cost of Capital for a company based on its specific financing mix (debt, equity and/or preference shares).

Weighted Average Cost of Capital 52

Weighted Average Cost of Capital Discounted Cash Flow Beta Risk-free Rate 52

Valutico

APRIL 17, 2023

WACC considers the costs associated with different components of a firm’s capital structure, such as debt, equity, and preferred stock, and weighs them according to their proportion. It is a metric used to calculate the Cost of Capital for a company based on its specific financing mix (debt, equity and/or preference shares).

Weighted Average Cost of Capital 52

Weighted Average Cost of Capital Discounted Cash Flow Beta Risk-free Rate 52

Valutico

APRIL 12, 2023

WACC considers the costs associated with different components of a firm’s capital structure, such as debt, equity, and preferred stock, and weighs them according to their proportion. It is a metric used to calculate the Cost of Capital for a company based on its specific financing mix (debt, equity and/or preference shares).

Weighted Average Cost of Capital 52

Weighted Average Cost of Capital Discounted Cash Flow Beta Risk-free Rate 52

Andrew Stolz

MARCH 20, 2020

A firm uses a mix of equity and debt to minimize the cost of capital. In general, the cost of debt is lower than the cost of equity due to the tax advantage of debt. The cost of equity (Ke) is an expected return that a firm pays to an equity investor to compensate for the risk of investing capital.

Beta 52

Beta Risk-free Rate Capital Structure Weighted Average Cost of Capital 52

Brian DeChesare

SEPTEMBER 13, 2023

Ask anyone interested in distressed debt hedge funds for “the pitch,” and they’ll probably mention one of the following: “It’s like long/short equity or credit , but more interesting!” Distressed investing offers equity-like returns with lower risk.” Distressed assets offer non-correlated returns, similar to global macro.”

Equity 103

Equity Banking EBITDA Start-ups 103

Brian DeChesare

AUGUST 31, 2022

Convertible bonds are hybrid instruments with elements of debt and equity, and some groups that trade convertible bonds also combine elements of S&T and IB. If you’re using a strategy like long/short equity , you could long or short a company’s stock, and your results would depend heavily on the stock market’s overall direction.

Banking 89

Banking Risk-free Rate Equity Start-ups 89

Global Finance

JUNE 4, 2024

In keeping with its intense focus on introducing cutting-edge digital infrastructure to its finance and banking systems, India in March became the first among major global financial market to implement T+0 settlement on its stock exchanges. Equity trades will now be settled on the same day they are made.

Start-ups 52

Start-ups Beta Banking Finance 52

Benzinga

JANUARY 12, 2024

billion a year ago, led by market beta on average AUM, positive organic base fee growth, and higher securities lending revenue. BlackRock Inc (NYSE: BLK ) reported Q4 FY23 revenue growth of 7% Y/Y to $4.631 billion, marginally above the consensus of $4.627 billion. billion from $3.40

Dividends 52

Dividends Beta Technology Marketability 52

Musings on Markets

JANUARY 31, 2024

In my last three posts, I looked at the macro (equity risk premiums, default spreads, risk free rates) and micro (company risk measures) that feed into the expected returns we demand on investments, and argued that these expected returns become hurdle rates for businesses, in the form of costs of equity and capital.

Equity 82

Equity Book Value Start-ups Corporate Finance 82

Equidam

FEBRUARY 1, 2024

As venture studios “earn” their equity via services and support provided, starting out with a large amount of relatively ‘cheap’ ownership (15-80%, depending on the model), it can make sense to cash-in sooner and reinvest the capital in new ventures. A notoriously difficult challenge in opaque private markets.

Beta 72

Beta Finance Equity Marketability 72

Musings on Markets

NOVEMBER 1, 2023

That attention has worked in the company's favor over much of its lifetime, as it has gone from a start-up to one of the largest market cap companies in the world, disrupting multiple businesses in the process. In subsequent valuations, I modified and adapted this story to reflect lessons that I learned about Tesla, along the way.

Start-ups 126

Start-ups Marketability Market Capitalization Beta 126

Brian DeChesare

MAY 3, 2023

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). And Equity Real Estate Investment Trusts (REITs) must distribute almost all their Net Income, so the DDM can work well in REIT valuations.

Dividends 64

Dividends Terminal Value Enterprise Value Equity 64

Brian DeChesare

DECEMBER 6, 2023

There are only a few dozen large funds in this category worldwide, but they’ve greatly impacted the markets and finance careers. Multi-manager hedge funds promise investors solid risk-adjusted returns with low volatility; no matter what the broader market does, you’ll make money if you invest in them. you lose 10% from your peak AUM).

Start-ups 104

Start-ups Beta Marketability Comps 104

Musings on Markets

FEBRUARY 10, 2021

Cost of raising funds (capital) : Since the funds that are invested by a business come from equity investors and lenders, one way in which the hurdle rate is computed is by looking at how much it costs the investing company to raise those funds.

Risk-free Rate 52

Risk-free Rate Risk Premium Start-ups Equity 52

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.

Beta 40

Beta Risk Premium Capital Structure Discounted Cash Flow 40

Brian DeChesare

JULY 19, 2023

If you’re interested in long-only hedge funds, you should ask a different set of questions: Do these long-only funds offer any advantages over strategies like long/short equity ? So, many distressed funds that pursue control strategies are “long-only” even if they market themselves as “distressed” or “deep value.”

Equity 52

Equity Beta Banking Start-ups 52

Brian DeChesare

MAY 24, 2023

Event-Driven Hedge Funds Definition: Event-driven hedge funds bet on specific corporate actions, such as M&A deals, divestitures, spin-offs, bankruptcies, and business reorganizations, and they profit based on changes in the value of a company’s debt or equity after the action.

Equity 64

Equity Start-ups EBITDA Banking 64

Equilest

APRIL 11, 2023

With limited features and formulas, it can be difficult to account for all the necessary parameters in a valuation, such as interest rates, equity risk premiums, and beta. Additionally, Excel does not have market analysis reports or all the necessary parameters to create an accurate valuation.

Business Valuation 40

Business Valuation Beta Risk Premium Discounted Cash Flow 40

Andrew Stolz

AUGUST 6, 2020

The expected return on an asset is determined by the risk-free rate of return with the addition of the asset’s beta to each macroeconomic factor that impacts the return on the asset multiplied by the risk premium of those factors. The price of the securities in the market is not efficient, so APT brings out a fair price to the market.

Risk-free Rate 52

Risk-free Rate Risk Premium Beta Marketability 52

Andrew Stolz

FEBRUARY 4, 2022

Strong ROE and ROIC might be overlooked by the market. Strong ROE and ROIC might be overlooked by the market. Given the strong demand outlook, I believe that the market should be more optimistic about the profit growth. In 3Q21, its net debt-to-equity ratio stood at 0.3x, compared to 0.6x Ratios – Terex Corporation.

Start-ups 52

Start-ups Net Debt Beta Equity 52

Benzinga

FEBRUARY 9, 2023

According to Statistica, revenue in the metaverse market is projected to reach $55 billion in 2023 and metaverse's reach is projected to be 700 million people by 2030. At launch, the Platform will be in beta format and not all of the experiences and functionality will be available immediately.

eCommerce 40

eCommerce Beta Marketability Equity 40

Valutico

OCTOBER 20, 2022

But here, we use what interest we could get from an alternative investment in the market, called the Market Rate. Discount Factor (using Market Rate: r=10%). But first, a quick aside, which you can feel free to skip if you want to jump ahead: Why Do We Use the Market Rate to Calculate the Discount Factor? B = Beta. (Rm

Discounted Cash Flow 52

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

Brian DeChesare

JULY 27, 2022

Anyone who’s ever traded stocks can understand long/short equity , and even simple global macro trades are easy to explain to the average person. Let’s say that Target has a bond with an 8% Yield to Maturity , i.e., you earn an internal rate of return (IRR) of 8% if you buy the bond at its current market price and hold it until maturity.

Equity 52

Equity Start-ups Private Equity Firm Beta 52

Global Finance

JUNE 9, 2025

More recently, the lab launched its “beyondbanking” initiative, an effort to identify nonfinancial markets that OTP Group could penetrate. It partners primarily with startups in Series A and Series B rounds of investments—those that have already demonstrated strong market traction and a market fit for their products.

Banking 52

Banking Technology Finance Compliance 52

Musings on Markets

JANUARY 6, 2023

Counter made-up numbers : It remains true that people (analysts, market experts, politicians) often make assertions based upon either incomplete or flawed data, or no data at all. Data universe : In my sample, I include all publicly traded firms with market capitalizations that exceed zero, traded anywhere in the world. PE & PEG 2.

Risk Premium 52

Risk Premium Dividends Start-ups EBITDA 52

Law 360 M&A

JUNE 18, 2025

Click here to login ADVERTISEMENT ADVERTISEMENT Related Sections Capital Markets Commercial Contracts Health Mergers & Acquisitions New York Private Equity Technology Law Firms ArentFox Schiff Cleary Gottlieb Hogan Lovells Latham & Watkins Polsinelli PC Squire Patton Companies Brooklyn Law School LinkedIn Corp.

Start-ups 52

Start-ups Compliance Banking Beta 52

Reynolds Holding

JULY 13, 2023

In a new book , I discuss “investment crowdfunding” (also known as “equity crowdfunding” or “securities crowdfunding”), an inclusive new type of online venture capital market – it’s like Kickstarter , except you get a share of stock. Some of the most important of these are gatekeeping, syndication, and wisdom-of-the-crowd.

Beta 40

Beta Marketability Compliance Equity 40

Law 360 M&A

JUNE 9, 2025

Sign In Try our Advanced Search for more refined results Toggle Dropdown Search Law360 Search News Only Search Cases Only Search PTAB Only Search TTAB Only Advanced Search Sign In Law360 | The Practice of Law Access to Justice Aerospace & Defense Appellate Asset Management Banking Bankruptcy Benefits California Cannabis Capital Markets Class Action (..)

Start-ups 52

Start-ups Compliance Banking Beta 52