Musings on Markets

JANUARY 10, 2025

If you want to check out which industry group a company falls into, please click on this file (a very large one that may take a while to download) for that detail. Standard Deviation in Equity/Firm Value 2. Book Value Multiples 3. EBIT & EBITDA multiple s 5. Fundamental Growth in Equity Earnings 2.

Risk Premium 121

Risk Premium Dividends Start-ups Corporate Finance 121

Musings on Markets

JANUARY 5, 2024

Standard Deviation in Equity/Firm Value 2. Book Value Multiples 3. EBIT & EBITDA multiple s 5. Working capital needs Thus, I compute pricing multiples based on revenues (EV to Sales, Price to Sales), earnings (PE, PEG), book value (PBV, EV to Invested Capital) or cash flow proxies (EV to EBITDA).

Dividends 106

Dividends Risk Premium Equity Book Value 106

Musings on Markets

OCTOBER 6, 2023

One way to measure progress on this issue is to look at the portion of the book value of equity at US companies that comes from tangible assets, in the chart below: Looking across all US firms from 1980 to 2022, the portion of book value of equity that comes tangible assets has dropped from more than 70% in 1998 to about 30% in 2022.

Intangible Assets 128

Intangible Assets Book Value Equity Start-ups 128

Musings on Markets

FEBRUARY 15, 2023

One is to compute the taxes you would have paid on operating income, if it had been fully taxable, to get after-tax operating income and margin , and the other is to add back depreciation to operating income to get EBITDA and EBITDA margin.

Start-ups 52

Start-ups Equity Risk Premium Risk-free Rate 52

FE International

DECEMBER 31, 2021

That is, were the companies in those transactions valued as a multiple of EBIT , EBITDA , revenue, or some other parameter? If you figure out what the key valuation parameter is, you can examine at what multiples of those parameters the comparable companies were valued. How to Value an Advertising Business.

Weighted Average Cost of Capital 52

Weighted Average Cost of Capital Business Valuation Precedent Transaction Analysis Start-ups 52

Musings on Markets

FEBRUARY 27, 2023

Cash generating capacity : Debt payments are serviced with operating cash flows, and the more operating cash flows that firms generate, as a percent of their market value, the more that they can afford to borrow. In fact, at a zero percent tax rate, the optimal debt ratio, if you define it as the mix that minimizes cost of capital is zero.

Equity 52

Equity EBITDA Start-ups Net Debt 52

Musings on Markets

FEBRUARY 4, 2023

Download data Again, the steep drop off in invested capital that you see in 2015 is just a reflection of the restructuring of the company that year, as the invested capital in Adani Ports and Power was removed from the mix. You see similar movements in the price to book, where the stock has gone from trading under book value to 6.7

Start-ups 100

Start-ups Market Capitalization Marketability Equity 100