Musings on Markets

OCTOBER 6, 2023

The Value of Intangible Assets Accounting has historically done a poor job dealing with intangible assets, and as the economy has transitioned away from a manufacturing-dominated twentieth century to the technology and services focused economy of the twenty first century, that failure has become more apparent.

Intangible Assets 128

Intangible Assets Book Value Equity Start-ups 128

IVSC

FEBRUARY 7, 2022

Searching for stocks with low price-to-book ratios was a good indication of a potential bargain. However, book values are no longer so informative as lots of intangibles are missing from the balance sheet, and some intangibles that are on the balance sheet, including many acquired intangibles and goodwill, are very hard to interpret.

Discounted Cash Flow 252

Discounted Cash Flow Intangible Assets Marketability Price to Book 252

Equidam

APRIL 26, 2025

Valuation as a Process, Not Just a Number A common misconception is that startup valuation aims to pinpoint a single, definitive “right” number representing the company’s price. Their value proposition is typically rooted not in past performance but in future potential.

Discounted Cash Flow 59

Discounted Cash Flow Terminal Value Book Value Beta 59

Equilest

DECEMBER 3, 2022

We will deal with the definitions of the two - and see which is more beneficial for calculating the FCF. . Depreciation is the process of deducting the cost of a business asset over a long period rather than over one year. The two common definitions for FCFF are: Definition 1: FCFF=(EBIT×(1?TR))+D?LI?IWC. What is EBIT?

EBIT 40

EBIT EBITDA Weighted Average Cost of Capital Discounted Cash Flow 40

Equilest

NOVEMBER 25, 2023

Dive into the nuances of industry-specific multiples, grasp the challenges of valuing intangible assets, and discover the evolving landscape of incorporating Environmental, Social, and Governance (ESG) factors into the valuation framework. Difference between Enterprise Value and Equity Value?

Discounted Cash Flow 52

Discounted Cash Flow Dividends Enterprise Value Terminal Value 52

Equilest

MARCH 28, 2025

Understanding Equity Value Definition of Equity Value Equity value is most comprehensively defined as the total value of a company's outstanding shares in conjunction with its net debt. Intangible assets, such as goodwill, patents, and trademarks, can contribute to the asset side of the equation.

Equity 40

Equity Net Debt Enterprise Value Capital Structure 40

Equilest

AUGUST 18, 2024

These factors collectively help establish a fair market value that reflects what a willing buyer and a willing seller would agree upon in an arm’s-length transaction. Detailed Analysis of Revenue Ruling 59-60 Definitions and Purpose At its core, Revenue Ruling 59-60 seeks to establish a fair market value for closely held businesses.

Appraisal 40

Appraisal Fair Market Value Business Valuation Intangible Assets 40