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

Global Finance

JUNE 4, 2024

Equity trades will now be settled on the same day they are made. The sped-up settlement cycle is a step up from India’s previous one-day settlement system. Indian exchanges started T+1 in 2021 with a similar phase-in, starting with blue chips, and was fully implemented by early 2023.

Start-ups

Musings on Markets

JANUARY 5, 2024

First, these categorizations were created close to twenty years ago, when I first started looking a global data, and many countries that were emerging markets then have developed into more mature markets now. Beta & Risk 1. Return on Equity 1. Equity Risk Premiums 2. Costs of equity & capital 4. Buybacks 2.

Dividends

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. But before delving into the best candidates for these roles, typical trades, careers, and more, let’s start with the basic definitions: What is a Convertible Arbitrage Hedge Fund?

Banking

Musings on Markets

NOVEMBER 1, 2023

I was planning to start this post by telling you that Tesla was back in the news, but that would be misleading, since Tesla never leaves the news. As a lead in to updating the company’s valuation, it makes sense to start with the stock price, the market’s barometer for the company's health.

Start-ups

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

Brian DeChesare

DECEMBER 6, 2023

They do this by setting up entire teams (“pods”) for specific sectors, having each team learn their stocks or other securities in-depth, and then trading frequently based on catalysts and changes in investor sentiment. Beta-Neutral Portfolios: For example, if the S&P 500 goes up or down by 5%, your team’s portfolio should move by ~0%.

Start-ups

Brian DeChesare

MAY 3, 2023

When I started offering financial modeling training , I never expected to get questions about a methodology like the Dividend Discount Model (DDM). It can be useful for certain companies, such as power and utility firms and midstream (pipeline) operators in oil & gas … …but it’s also much harder to set up and use than a standard DCF.

Dividends

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

Musings on Markets

FEBRUARY 10, 2021

In this post, I will start by looking at the role that hurdle rates play in running a business, with the consequences of setting them too high or too low, and then look at the fundamentals that should cause hurdle rates to vary across companies.

Risk-free Rate

Brian DeChesare

MAY 24, 2023

But, as usual, I want to start with the definitions and fund types: What is an “Event-Driven Hedge Fund”? A long/short equity fund could find an undervalued company, like it for reasons A, B, and C, and argue that its price will increase by 50%. EBITDA multiple , matching its own.

Equity

Andrew Stolz

FEBRUARY 4, 2022

The efforts start to pay off as the operating profit achieves a higher level. Both ROIC and ROE could climb up to 20% in 21E. Significant increases in inventories and receivables as sales volume likely to ramp up as shown by the strong backlog. The company started to reduce its long-term debt. Ratios – Terex Corporation.

Start-ups

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

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. It lacks interest rates, equity risk premiums, beta, and other important data. You can Sign up for free here.

Business Valuation

Lighter Capital

JUNE 20, 2024

His Challenges As a Caregiver Were Not Unique Tavis and his wife were living in the Dallas Fort-Worth area when his mom, who lived in a different suburb, started showing early signs of dementia. As his mom’s condition worsened, so did the bills and charges that accumulated when she picked up the phone.

Beta

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 ? I’ll answer both questions here, but I want to start with a few definitions: What is a Long-Only Hedge Fund?

Equity

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. To simplify, we can say that credit hedge funds operate in three main areas: Long/Short Credit – It’s similar to long/short equity , but with bonds rather than stocks. See the example above.

Equity

Musings on Markets

JANUARY 6, 2023

In my last post, I talked about the ritual that I go through every year ahead of my teaching each spring, and in this one, I will start on the first of a series of posts that I make at the start of each year, where I look at data, both macro and company-level. That is not true!

Risk Premium

Valutico

APRIL 25, 2023

The ESG score feeds into our proprietary algorithm to derive an appropriate adjustment to the Cost of Equity and Cost of Debt, which impacts the final valuation. Similarly to the Qualitative Assessment, it is up to the discretion of the user as to whether they wish to use these specific discounts or premiums in their final valuation.

Discounted Cash Flow

Valutico

APRIL 25, 2023

The ESG score feeds into our proprietary algorithm to derive an appropriate adjustment to the Cost of Equity and Cost of Debt, which impacts the final valuation. Similarly to the Qualitative Assessment, it is up to the discretion of the user as to whether they wish to use these specific discounts or premiums in their final valuation.

Discounted Cash Flow

Musings on Markets

JANUARY 12, 2021

I also start thinking about my passion, which is teaching, the spring semester to come, and the classes that I will be teaching, repeating a process that I have gone through every year since 1984, my first year as a teacher. Face up to uncertainty, rather than avoid or deny it : Uncertainty is a feature of investing/ business, not a bug.

Corporate Finance

Benzinga

MAY 11, 2022

Several demonstrations of the Guardian XT robot Beta units to partners and customers have taken place in Sarcos' facility since the start of the year and the company continues to expect that Guardian XT robot Beta units will be placed with customers for field tests in mid-2022. million for 2022. 6,841. . . . 235,823. .

Technology

Global Finance

SEPTEMBER 5, 2024

Other technological innovations from these labs address everything from improving anti-money laundering (AML) compliance and easing underwriting processes to speeding up customer onboarding and improving cash management for small and midsize enterprise (SME) clients. In exchange, BTG Pactual received 3% equity.

Banking

Musings on Markets

JANUARY 28, 2024

In my last data updates for this year, I looked first at how equity markets rebounded in 2023 , driven by a stronger-than-expected economy and inflation coming down, and then at how interest rates mirrored this rebound. Analysts often try to bring company-specific components, i.e,

Risk Premium

Value Scope

SEPTEMBER 24, 2020

It started sometime last year, during the fourth quarter. 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. The re-levered Beta for the private company we were valuing was 0.56.

Intangible Assets

Musings on Markets

OCTOBER 25, 2021

The graph below, from the Pew Research Center, is a good starting point, since it highlight the shift in the share of aggregate US income flowing to upper, middle and lower income households. A rising stock market has augmented the wealth inequality, since the wealthiest hold the preponderance of equities in the market.

Start-ups

Brian DeChesare

JUNE 29, 2022

If you’re thinking about exit opportunities and can’t decide between private equity and hedge funds , activist hedge funds might be your solution. Similar to private equity firms, they operate on longer time frames, influence companies’ operations and finances, and might catalyze major changes, such as spin-offs or acquisitions.

Private Equity Firm

Musings on Markets

FEBRUARY 16, 2024

If you start enumerating every risk a business is exposed to, you will find yourself being overwhelmed by that list, and it is for that reason that I categorize risk into the groupings that I described in an earlier post on risk.

Risk Premium

Brian DeChesare

NOVEMBER 9, 2022

People usually start this discussion by comparing S&T exits to investment banking exit opportunities and saying that S&T exit options are “worse.”. Traditional investment banking exit opportunities such as private equity , venture capital , and corporate development are highly unlikely , with a few exceptions for certain desks.

Banking

Brian DeChesare

AUGUST 10, 2022

But before delving into the exit opportunities and the long-term outlook, let’s start with the fundamentals: Oil & Gas Investment Banking Defined. Midstream: 85 (mix of asset deals, M&A, debt, and even some private equity activity). Downstream: 31 (mix of everything, but no private equity activity).

Banking

Musings on Markets

FEBRUARY 27, 2023

That may reflect the concern that once a person or entity starts borrowing to fund its needs, it is easy to overuse debt, and risk its wellbeing in the process. 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.

Equity

Valutico

AUGUST 17, 2022

Valutico has once again made finance professional’s lives easier by announcing the launch of the Venture Capital (VC) method for valuing start-ups, available for the first time within its online platform. . One difficulty with valuing start-ups is that they have less financial history behind them. What is the VC method?

Start-ups

Law 360 M&A

JUNE 30, 2025

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Compliance

Law 360 M&A

JUNE 24, 2025

ADVERTISEMENT Analysis A Midyear Review: Healthcare Dealmaking Trends Of 2025 By Yeji Jesse Lee ( June 24, 2025, 2:50 PM EDT) -- The beginning of 2025 coincided with the start of a new presidential administration in the U.S., and subsequently a period of macroeconomic uncertainties that shook up dealmaking across industries.

Start-ups

Law 360 M&A

JUNE 18, 2025

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Start-ups

Law 360 M&A

JUNE 9, 2025

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Start-ups

Law 360 M&A

JUNE 6, 2025

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Start-ups