Musings on Markets

JANUARY 20, 2021

Note that nothing that I have said so far is premised on modern portfolio theory, or any academic view of risk premiums. It is true that economists have researched risk aversion for centuries and concluded that investors are collectively risk averse, and that the level of risk aversion varies across age groups, income levels and time.

Risk Premium 52

Risk Premium Risk-free Rate Equity Dividends 52

Chris Mercer

MARCH 7, 2024

My current series of blog posts is titled “Mercer’s Musings.” This is the “base value” that has been addressed in a number of posts on this blog. Interest-level benefits may be affected by such factors as: (1) The history of dividends or distributions, including both timing and amounts. (2)

Dividends 52

Dividends Appraisal Terminal Value Marketability 52

Musings on Markets

MAY 6, 2022

Inflation: The Full Story I wrote my first post on this blog in 2008, and inflation merited barely a mention until 2020, though it is an integral component of investing and valuation. As the inflation bogeyman returns, the worries of what may need to happen to the economy to bring inflation back under control have also mounted.

Risk Premium 92

Risk Premium Treasury Start-ups Equity 92

Equilest

MARCH 17, 2022

We note that the higher the expected rate (in other words, the greater the risk is perceived as necessary, to the point of requiring a substantial "risk premium"), the lower the multiple that will apply and therefore the lower valuation: we buy cheaper which is less safe. We would love to hear your notes regarding our blog post.

Business Valuation 40

Business Valuation EBIT EBITDA Discounted Cash Flow 40