Musings on Markets

MARCH 8, 2023

This is the last of my data update posts for 2023, and in this one, I will focus on dividends and buybacks, perhaps the most most misunderstood and misplayed element of corporate finance. Viewed in that context, dividends as just as integral to a business, as the investing and financing decisions.

Dividends 91

Dividends Start-ups Finance Corporate Finance 91

Chris Mercer

MARCH 8, 2023

This post provides a discussion of several implications of the definition of the standard of value known as fair market value. We focus first on the definition of fair market value. We then look at the implications for the so-called “marketability discount for controlling interests.”

Fair Market Value 52

Fair Market Value Marketability Appraisal Business Valuation 52

Valutico

DECEMBER 15, 2022

Below, we outline what this method is, the different ways it works as well as key considerations when using this approach to value a company. Valuations using multiples is one of the three main approaches to valuing a business, sometimes referred to as the ‘market-based approach’. Surveys of market participants.

Precedent Transaction Analysis 52

Precedent Transaction Analysis EBITDA Comparable Company Analysis Enterprise Value 52

Valutico

DECEMBER 15, 2022

Below, we outline what this method is, the different ways it works as well as key considerations when using this approach to value a company. Valuations using multiples is one of the three main approaches to valuing a business, sometimes referred to as the ‘market-based approach’. Surveys of market participants.

Precedent Transaction Analysis 52

Precedent Transaction Analysis EBITDA Comparable Company Analysis Enterprise Value 52

The Mentor Group

FEBRUARY 1, 2022

Long-term equity anticipation securities (LEAPs). Marketability - the limited market for trading interests in the entity or asset. Also known as DLOM, or discount for lack of marketability. Most discount valuations recite information from at least some these data sources. Control premium studies. Closed end funds (CEFs).

Dividends 40

Dividends Fair Market Value Equity Book Value 40

Class VI Partner

JULY 28, 2021

Adjusted Net Book Value Adjusted Net Book Value is the Book Value of a business that has been adjusted to reflect the current market value of the assets and liabilities of a company. In this case, an adjustment to the value of these assets is required to determine Adjusted Net Book Value.

Book Value 52

Book Value Equity Enterprise Value Fair Market Value 52

Musings on Markets

FEBRUARY 27, 2022

After paying taxes on this income, the residual amount represents net income, the final measure of equity earnings, and the basis for computing earnings per share and other widely used measures of profitability used by equity investors. The numbers yield interesting insights.

Start-ups 80

Start-ups Equity Book Value Marketability 80

Musings on Markets

JANUARY 5, 2024

I have also developed a practice in the last decade of spending much of January exploring what the data tells us, and does not tell us, about the investing, financing and dividend choices that companies made during the most recent year.

Dividends 98

Dividends Risk Premium Equity Book Value 98

Musings on Markets

JULY 17, 2023

I am not a market prognosticator for a simple reason. I am just not good at it, and the first six months of 2023 illustrate why market timing is often the impossible dream, something that every investor aspires to be successful at, but very few succeed on a consistent basis.

Marketability 95

Marketability Risk Premium Start-ups Treasury 95

Musings on Markets

JANUARY 9, 2021

I spent the first week of 2021 in the same way that I have spent the first week of every year since 1995, collecting data on publicly traded companies and analyzing how they navigated the cross currents of the prior year, both in operating and market value terms.

Risk Premium 52

Risk Premium Market Capitalization Equity Start-ups 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 79

Equity Book Value Start-ups Corporate Finance 79

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.

Risk Premium 52

Risk Premium Dividends EBITDA Start-ups 52

Benzinga

APRIL 18, 2022

Return on average tangible common equity (1). . . markets is again demonstrated by the announcement of our intent to acquire Rock Canyon Bank," said Tim Laney, Chairman, President and CEO of National Bank Holdings Corporation. million lower unrealized gains from equity method investments included in the prior quarter and $0.7

Banking 40

Banking Book Value Equity Intangible Assets 40

Brian DeChesare

JUNE 1, 2022

Traditionally, the sector was viewed as a defensive play for investors who wanted stable dividends and no drama. But over time, trends like market liberalization, deregulation, the shift to renewables, and the ESG religion “movement” have shaken up a sleepy sector.

Banking 96

Banking Equity Book Value Capital Structure 96

Benzinga

SEPTEMBER 6, 2023

RSA had previously announced its exit from the UK Personal Lines motor market in March 2023, as well as outlined plans to optimize its leading Home and Pet platforms. 2 IRR is the discount rate that makes the net present value of all cash flows equal to zero in a discounted cash flow analysis.

Discounted Cash Flow 40

Discounted Cash Flow Net Present Value Book Value Dividends 40

Musings on Markets

FEBRUARY 4, 2023

The History The Adani Group, founded by Gautam Adani, started life as a commodity trading partnership business in Gujarat, and listed on stock markets in 1994, as Adani Exports, with a large chunk of its revenues coming from its operation of a local port in Mundra, with a subsequent entry into the edible oil business.

Start-ups 100

Start-ups Market Capitalization Marketability Equity 100