Remove Book Value Remove Dividends Remove Marketability
article thumbnail

EV/EBITDA Explained: A Key Valuation Multiple for Investors

Valutico

The core idea behind relative valuation is to estimate a company’s value by comparing it to similar companies based on how the market prices their financial metrics. The multiple is calculated as Enterprise Value (EV) divided by EBITDA. EV/EBITDA is a widely used multiple in this relative valuation approach.

article thumbnail

Data Update 1 for 2025: The Draw (and Danger) of Data

Musings on Markets

In corporate finance and investing, which are areas that I work in, I find myself doing double takes as I listen to politicians, market experts and economists making statements about company and market behavior that are fairy tales, and data is often my weapon for discerning the truth. Dividends and Potential Dividends (FCFE) 1.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Data Update 8 for 2025: Debt, Taxes and Default - An Unholy Trifecta!

Musings on Markets

Equity is cheaper than debt: There are businesspeople (including some CFOs) who argue that debt is cheaper than equity, basing that conclusion on a comparison of the explicit costs associated with each interest payments on debt and dividends on equity. Consequently, companies in these environments will borrow much more than they should.

article thumbnail

To Bitcoin or not to Bitcoin? A Corporate Cash Question!

Musings on Markets

The first is the role that cash holdings play in a business , an extension of the dividend policy question, with an examination of why businesses often should not pay out what they have available to shareholders. In this post, I will bring together two disparate and very different topics that I have written about in the past.

article thumbnail

3 Blue Chip Opportunities the Market Overlooked—Now's Your Chance

Benzinga

The stock market's insatiable appetite for high-growth stories often leaves a trail of undervalued opportunities in its wake. Blue-chip stocks are the corporate world's stalwarts and frequently get overshadowed by the allure of the latest market darlings. A closer look at Cisco's valuation reveals potential undervaluation.

article thumbnail

Deja Vu #11: Can Restricted Stock Studies Be Used to Estimate DLOMs for Dividend-Paying Companies?

Chris Mercer

This eleventh post in the Deja Vu series involving restricted stock studies addresses an issue that is rarely mentioned in the context of the studies – of the impact of dividends on restricted stock discounts (RSDs). Of these 244 transactions, only 24 involved companies that paid dividends, or less than 10% of the transactions.

article thumbnail

Data Update 1 for 2024: The data speaks, but what does it say?

Musings on Markets

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.