Musings on Markets

MAY 20, 2022

Inflation and Value When in doubt about how any action or information plays out in value, I find it useful to go back to value basics, and trace out the effects of that action/information on value drivers. On the risk front, you would like the company to have a l arge and stable earnings stream and a light debt load.

Price to Book 96

Price to Book Dividends Beta Equity 96

Musings on Markets

JULY 13, 2022

It has been my practice for the last two decades to take a detailed look at how risk varies across countries, once at the start of the year and once mid-year. Country Risk: Currency and Cost of Capital As a final part to this post, to see the shifts in country risk that we have seen in 2022, let’s start with an assessment of risk free rates.

Risk Premium 81

Risk Premium Risk-free Rate Start-ups Equity 81

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. Given the strong demand outlook, I believe that the market should be more optimistic about the profit growth. The company started to reduce its long-term debt. FVMR Scorecard – Terex Corporation.

Start-ups 52

Start-ups Net Debt Beta Equity 52

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 52

Risk-free Rate Risk Premium Start-ups Equity 52

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.”. the process is still unstructured, but it’s much more about fit and skill set rather than P&L results. But that’s not quite accurate.

Banking 74

Banking Equity Start-ups Marketability 74

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. In fact, there are three key themes that I emphasize through this class. That tells me three things.

Corporate Finance 52

Corporate Finance Start-ups Finance Marketability 52

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. The answer is yes, though the payoff, in terms of value, from moving to that optimal may be so small that it is sometimes better to hold back from borrowing.

Equity 52

Equity EBITDA Start-ups Net Debt 52

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.

Technology 40

Technology Beta Start-ups Compliance 40

Musings on Markets

FEBRUARY 8, 2022

Investors all talk about risk, but there seems to be little consensus on what it is, how it should be measured, and how it plays out in the short and long term. In closing, I will talk about some of the more dangerous delusions that undercut good risk taking. What is risk? Let me use two illustrations to bring this home.

Risk Premium 67

Risk Premium Beta Start-ups Equity 67

Brian DeChesare

AUGUST 31, 2022

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? If the stock price goes up or down by 10%, but the volatility stays the same, you might not earn or lose anything on the trade.

Banking 67

Banking Risk-free Rate Equity Start-ups 67

Musings on Markets

FEBRUARY 16, 2024

Stepping back a bit, one claim that climate change advocates have made not just about fossil fuel companies, but about all businesses, is that i nvestors are underestimating the effects that climate change will have on economic systems and on value.

Risk Premium 74

Risk Premium Start-ups Beta Marketability 74

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. And similar to long/short equity hedge funds , they target undervalued and misunderstood companies and profit when the rest of the market catches up.

Private Equity Firm 52

Private Equity Firm Equity Banking Start-ups 52

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. In subsequent valuations, I modified and adapted this story to reflect lessons that I learned about Tesla, along the way.

Start-ups 114

Start-ups Marketability Market Capitalization Equity 114

Brian DeChesare

AUGUST 10, 2022

The first one about becoming pigeonholed is more valid, but it depends on your experience and how quickly you move around. But before delving into the exit opportunities and the long-term outlook, let’s start with the fundamentals: Oil & Gas Investment Banking Defined. I can understand these concerns, but they’re both overblown.

Banking 88

Banking EBITDA Dividends Equity 88

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”? Translating that to English: “We can grow more quickly and get higher margins without CMS, so our multiples will increase, and our share price will go up.” For example, if Jacobs trades up from an 11.5x revenue and 11.5x

Equity 64

Equity Start-ups EBITDA Banking 64

Musings on Markets

JANUARY 31, 2024

In this post, I start by looking at the end game for businesses, and how that choice plays out in investment rules for these businesses, and then examine how much businesses generated in profits in 2023, scaled to both revenues and invested capital. The End Game in Business If you start a business, what is your end game?

Equity 79

Equity Book Value Start-ups Corporate Finance 79

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 86

Marketability Start-ups Equity Price to Book 86

Musings on Markets

JANUARY 5, 2024

Along the way, more people than I ever imagined have found my data of use, and while I still have no desire to be a data service, I have an obligation to be transparent about my data analysis processes. Beta & Risk 1. Consequently, I do report industry averages for the two fastest growing emerging markets in India and China.

Dividends 98

Dividends Risk Premium Equity Book Value 98

Brian DeChesare

DECEMBER 6, 2023

Almost all conversations about buy-side roles eventually turn to multi-manager hedge funds , also known as “pod shops.” 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.

Start-ups 90

Start-ups Beta Marketability Comps 90

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. Data: Trickle to a Flood! That is not true!

Risk Premium 52

Risk Premium Dividends EBITDA Start-ups 52

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.

Start-ups 98

Start-ups Appraisal Marketability Beta 98

Brian DeChesare

JULY 19, 2023

I’ll answer both questions here, but I want to start with a few definitions: What is a Long-Only Hedge Fund? But this is extremely difficult because very few sizable companies have negative Betas – and when they do, it’s usually due to an anomaly or special situation.

Equity 52

Equity Beta Banking Start-ups 52

Brian DeChesare

SEPTEMBER 13, 2023

Most dedicated distressed funds offer less liquidity and longer lock-up periods than other hedge funds, and they tend to hold positions for months or years with fairly concentrated portfolios. So, I would expect distressed performance to improve, especially as companies start to feel the effects of higher rates.

Equity 88

Equity Banking EBITDA Start-ups 88

Brian DeChesare

JULY 27, 2022

But if you invest in credit and try to explain your job to a normie, their eyes will glaze over as you talk about credit default swaps, crossover credits, or the springing maturity date found on page 374 of a loan agreement. This definition already feels difficult to understand, so a quick example might help.

Equity 52

Equity Start-ups Private Equity Firm Beta 52

FE International

MARCH 14, 2018

As the market-leading advisor for online business sales, the team at FE International answers questions every day about the best practices of selling an app business. What should your considerations be as you think about building a new product? Therefore, we have put together this guide to valuing an app business. Adobe Creative Cloud.

Marketability 52

Marketability Start-ups EBITDA Business Valuation 52

Value Scope

SEPTEMBER 24, 2020

It started sometime last year, during the fourth quarter. In 2018, the number was about $5 billion. “The While we might not have an answer right now about the regulatory aspects of ESG reporting, this paper will introduce analytical methods for providing valuations of ESG performance. These things are not hard to measure.

Intangible Assets 130

Intangible Assets Alpha Beta Marketability 130