Equidam

APRIL 26, 2025

This approach encourages dialogue focused on the business fundamentals the team, the market opportunity, the product, the financial projections rather than anchoring the conversation to arbitrary figures potentially derived from selectively chosen, and often inappropriate, market comparisons.

Discounted Cash Flow 59

Discounted Cash Flow Terminal Value Book Value Beta 59

Valutico

FEBRUARY 27, 2024

The formula for WACC is: WACC = (E/V x Re) + ((D/V x Rd) x (1-T)) E = market value of equity D = market value of debt V = total market value of the firm’s equity and debt Re = cost of equity Rd = cost of debt T = tax rate Check out more insights on the concept of WACC here.

Discounted Cash Flow 52

Discounted Cash Flow Risk Premium Risk-free Rate Beta 52

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

Andrew Stolz

AUGUST 6, 2020

The return on assets is determined by systematic factors such as changes in inflation , risk premiums, interest rates, etc. Investors construct portfolios with unsystematic risks, which are well-diversified to reduce total portfolio risk. The risk-free rate is 5%. What Impacts the Arbitrage Pricing Theory?

Risk-free Rate 52

Risk-free Rate Risk Premium Beta Marketability 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

Musings on Markets

FEBRUARY 10, 2021

Capital Constrained Clearing Rate : The notion that any investment that earns more than what other investments of equivalent risk are delivering is a good one, but it is built on the presumption that businesses have the capital to take all good investments. More on that issue in a future data update post.)

Risk-free Rate 52

Risk-free Rate Risk Premium Start-ups Equity 52

Andrew Stolz

MARCH 20, 2020

The formula implies the return an investor expects from a risk-free investment plus the return from the stock in relation to market volatility. The market risk premium is calculated from a market rate of return less a risk-free rate. Therefore, the risks of the firm are eventually increased.

Beta 52

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

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

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

Valutico

AUGUST 10, 2023

Valuing a small and medium-sized enterprise (SME) requires a judicious blend of financial analysis, market understanding, and strategic foresight. Valuation Methods: The Asset-based, Income, and Market Approaches are the primary methodologies for SME valuation, each offering different insights into the company’s worth.

Discounted Cash Flow 52

Discounted Cash Flow Asset-based Approach Intangible Assets Business Valuation 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

Brian DeChesare

MAY 3, 2023

You usually link Revenue to market share * market size or units sold * average selling price, with expenses linked to Capacity, unit sales, or another top-level driver. 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

Equilest

APRIL 12, 2023

This will enable you to get an economic analysis of your industry, as well as the earning multiple, sales multiple, beta, and risk premium, all automatically from the Equitest database. Tip 3: Consider the Market Equitest business valuation software uses industry-specific data to estimate the value of your business.

Business Valuation 40

Business Valuation Beta Risk Premium Marketability 40

Valutico

SEPTEMBER 13, 2023

Valuing a Small and Medium-sized Enterprise (SME) involves assessing the company’s financial performance, assets, market position, and growth potential. Discounted Cash Flow analysis), Market Approach (e.g. Alongside the DCF described above, the Market Approach is a widely adopted approach used by valuation practitioners.

Discounted Cash Flow 52

Discounted Cash Flow Comparable Company Analysis Asset-based Approach Intangible Assets 52

Musings on Markets

JANUARY 12, 2021

Thus, you and I can disagree about whether beta is a good measure of risk, but not on the principle that no matter what definition of risk you ultimately choose, riskier investments need higher hurdles than safer investments. That tells me three things.

Corporate Finance 52

Corporate Finance Start-ups Finance Marketability 52

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

Equilest

JUNE 10, 2023

It helps owners determine the fair market value of their business, which is essential when considering a sale, merger, or acquisition. Market Conditions and Industry Trends Evaluating the current market conditions and industry trends is critical in assessing the value of a tax preparation business.

Business Valuation 40

Business Valuation Fair Market Value Marketability Technology 40

Equilest

JUNE 13, 2023

Geographic Location and Market Demand The geographic location of a disaster restoration business plays a significant role in its valuation. The local market dynamics, competition, and potential for future growth are crucial factors to consider when valuing a business. The total value of these assets forms the basis for the valuation.

Business Valuation 40

Business Valuation Asset-based Approach Appraisal Intangible Assets 40

Appraiser Newsroom

JUNE 4, 2024

He is the Director of the Pepperdine Private Capital Markets Project (privatecap.org) and Executive Director for the Pepperdine Most Fundable Companies competition (pepperdine.edu/mfc). His teaching and research interests include entrepreneurial finance, private capital markets, and entertainment finance. Dr. Everett He holds a Ph.D.

Business Valuation 59

Business Valuation Intangible Assets Appraisal Finance 59

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.

Risk Premium 121

Risk Premium Beta Start-ups Equity 121

Musings on Markets

FEBRUARY 16, 2024

Deconstructing Risk While we may use statistical measures like volatility or correlation to measure risk in practice, risk is not a statistical abstraction. Its impact is not just financial, but emotional and physical, and it predates markets. 4 & 5 Uninsurable Risk.

Risk Premium 78

Risk Premium Start-ups Beta Marketability 78

Musings on Markets

FEBRUARY 27, 2023

Note that this framework applies for all businesses, from the smallest, privately owned businesses, where debt takes the form of bank loans and even credit card borrowing and equity is owner savings, the largest publicly traded companies, where debt can be in the form of corporate bonds and equity is shares held by public market investors.

Equity 52

Equity EBITDA Start-ups Net Debt 52

Equidam

MAY 14, 2025

Categorisation poses a significant challenge in startup valuation, with investors and founders frequently mixing up markets, business models, industries, and underlying technologies. This calibration directly impacts expected returns, required ROI, survival rates, and appropriate liquidity discounts, significantly refining risk assessment.

Risk Premium 64

Risk Premium Risk-free Rate Beta Market Risk 64

Equidam

APRIL 22, 2025

S ection 3: What Influence Do Markets Have on Startup Valuation? Valuing startups relies heavily on assumptions about future performance, interpretations of market trends, and the specific perspectives and risk appetites of the involved parties. [3] This exploration will cover: Section 1: What is Startup Valuation?

Discounted Cash Flow 64

Discounted Cash Flow Terminal Value Marketability EBITDA 64