Musings on Markets

NOVEMBER 10, 2022

Accounting 101 I am not an accountant, and have no desire to be one, but I have used their output (accounting statements) as raw material in valuation and corporate finance. That skewing can affect valuation and pricing judgments about these firms, and correcting accounting inconsistencies is a key step towards leveling the playing field.

Finance 77

Finance Start-ups Equity Equity Financing 77

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.

Start-ups 82

Start-ups Equity Book Value Marketability 82

Benzinga

APRIL 28, 2023

of tangible shareholders' equity (1) at March 31, 2023. million; Return on average assets was 1.01%; Return on average equity of 8.91% and return on average tangible common equity (1) of 11.97% for the quarter ended March 31, 2023. Book value per common share was $32.15 Resilient profitability: Earnings of $11.2

Dividends 40

Dividends Banking Book Value Equity 40

Reynolds Holding

MAY 11, 2023

For our analysis, we draw on an earlier post , in which we argued that the actions of the Swiss authorities made sense from a corporate finance, legal, and financial stability perspective. According to the 2022 CS Annual Report , the book value per share was 11.45 First, investors in CS did bear a significant part of the losses.

Banking 59

Banking Equity Book Value Treasury 59

Reynolds Holding

FEBRUARY 12, 2024

According to Bologna, if SoFi had elected to account for loans at amortized cost and had to take CECL reserves similar to peers, its tangible book value per share reported for the third quarter of 2023 would fall from $3.42 This higher revenue ultimately flows through to earnings and capital. and its CET1 ratio would be cut from 14.3

Banking 59

Banking Book Value Start-ups Technology 59

Reynolds Holding

APRIL 18, 2024

a lower cost of raising equity capital), increased profitability, lower audit fees, and fewer shareholder disputes compared with non-CEFO firms (i.e., cents lower per dollar of total book value of assets than such fees for non-CEFO firms. those that did not adopt a code of ethics for their senior financial officers).

Start-ups 64

Start-ups Book Value Compliance Finance 64

Sun Acquisitions

OCTOBER 5, 2022

It’s an excellent way to establish a business’ fair value as the valuation itself is conducted by an independent third party. Business valuation experts may look into the organization’s earnings multipliers, market cap, and book value in order to give an objective estimation of the company’s worth.

Business Valuation 52

Business Valuation Earnings Multiplier Private Equity Firm Book Value 52

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. Return on Equity 1. Equity Risk Premiums 2. Costs of equity & capital 4.

Dividends 100

Dividends Risk Premium Equity Book Value 100

Benzinga

JULY 10, 2023

With the completion of this transaction, SMGI's balance sheet is significantly improved, including a large increase in the book value of the combined company. Financing Structure: The transaction was financed through a $25.0 As part of the transaction, the principal owners of Barnhart received $19.25

EBITDA 40

EBITDA Book Value Capital Structure Marketability 40

Benzinga

APRIL 26, 2023

Non-performing Assets were 0.14% of Total Assets at March 31, 2023 Common Equity Tier 1 and Tangible Common Equity Ratio of 12.16% and 7.63%, Respectively, at March 31, 2023 1 LAKEVILLE, Conn., Capital Shareholders' equity increased $4.0 Book value per common share of $22.79 million, or 1.8%

Dividends 40

Dividends Banking Equity Book Value 40

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 78

Equity Book Value Start-ups Corporate Finance 78

Valutico

MAY 6, 2024

Valutico | May 7, 2024 Valuation is really important in finance. This guide talks about the main ways we figure out value during M&A deals, why they’re useful, and what challenges they bring. Some techniques include comparing companies in the market, estimating future cash flows, and assessing the value of tangible assets.

Discounted Cash Flow 52

Discounted Cash Flow Precedent Transaction Analysis Weighted Average Cost of Capital Comparable Company Analysis 52

Musings on Markets

JANUARY 9, 2021

The second was that, starting mid-year in 2020, equity markets and the real economy moved in different directions, with the former rising on the expectations a post-virus future, and the latter languishing, as most of the world continued to operate with significant constraints.

Risk Premium 52

Risk Premium Market Capitalization Equity Start-ups 52

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 94

Dividends Start-ups Finance Corporate Finance 94

Brian DeChesare

SEPTEMBER 13, 2023

Ask anyone interested in distressed debt hedge funds for “the pitch,” and they’ll probably mention one of the following: “It’s like long/short equity or credit , but more interesting!” Distressed investing offers equity-like returns with lower risk.” Distressed assets offer non-correlated returns, similar to global macro.”

Equity 103

Equity Banking EBITDA Start-ups 103

Brian DeChesare

JUNE 1, 2022

Power and Utilities Investment Banking Definition: In power/utilities IB, bankers advise companies that produce, transmit, and distribute electricity, natural gas, and water on raising debt and equity and completing mergers and acquisitions. ” Different banks classify their power & utilities groups differently.

Banking 98

Banking Equity Book Value Capital Structure 98

Global Finance

JULY 29, 2024

Higher interest rates have given banks some relief over the past few years, increasing their net interest income while hampering competitors—particularly fintech startups dependent on equity financing. Equity investors value Visa at 29 times earnings and 13 times book value, according to Bloomberg.

Banking 59

Banking Start-ups Technology Marketability 59

Musings on Markets

JANUARY 6, 2023

Check rules of thumb : Investing and corporate finance are full of rules of thumb, many of long standing. For example, I have seen it asserted that a stock that trades at less than book value is cheap or that a stock that trades at more than twenty times EBITDA is expensive. Cost of Equity 1. Price to Book 3.

Risk Premium 52

Risk Premium Dividends Start-ups EBITDA 52

Equilest

AUGUST 6, 2023

Whether you are an investor, a business owner, or a finance professional, the ability to accurately assess the worth of a company is crucial for making informed decisions. Liquidation Value: This method assesses the value of the company's assets if they were to be sold off in a liquidation scenario.

Discounted Cash Flow 40

Discounted Cash Flow Business Valuation Precedent Transaction Analysis Comparable Company Analysis 40

Farrel Fritz

FEBRUARY 14, 2022

Quattro’s Position on Value. In its memorandum of law , Quattro argued that no trial was required because all of the evidence showed, and Rakib previously admitted, that Quattro’s equity was worthless without an additional cash infusion of tens of millions of dollars.

Book Value 59

Book Value Appraisal Business Valuation Fair Market Value 59

IBG Business

MAY 31, 2023

Private equity groups (PEGs) are essentially groups of investors that have combined their collective resources, business experience, and management skills to form an acquisition entity capable of raising and investing significant sums of money. Selling to a Private Equity Group.

EBITDA 52

EBITDA Marketability Equity Book Value 52

Benzinga

SEPTEMBER 6, 2023

Net operating income attributable to common shareholders is a non-IFRS measure which represents the net income attributable to shareholders, excluding the after-tax impact of non-operating results, net of net income (loss) attributable to non-controlling interests (non-operating component), preferred share dividends and other equity distributions.

Discounted Cash Flow 40

Discounted Cash Flow Net Present Value Book Value Dividends 40

Reynolds Holding

FEBRUARY 21, 2024

they opted for pooling accounting, in which goodwill was not recognized and therefore not amortized; the book value of the assets and liabilities of the two businesses were just added together. This derives from value-relevance being the main accounting objective in the U.S., Managerial Finance , 36(9), pp. In the U.S.

Intangible Assets 45

Intangible Assets Book Value Banking Finance 45

Valutico

AUGUST 23, 2023

It considers the company’s cost of equity, cost of debt, and capital structure. c) Calculating Present Value: The projected cash flows are then discounted to their present value using the discount rate. The present values of all projected cash flows are summed to determine the company’s intrinsic value.

Discounted Cash Flow 52

Discounted Cash Flow Comparable Company Analysis EBITDA Enterprise Value 52

Valutico

AUGUST 10, 2023

It considers the company’s cost of equity, cost of debt, and capital structure. c) Calculating Present Value: The projected cash flows are then discounted to their present value using the discount rate. The present values of all projected cash flows are summed to determine the company’s intrinsic value.

Discounted Cash Flow 52

Discounted Cash Flow Comparable Company Analysis EBITDA Enterprise Value 52

Musings on Markets

FEBRUARY 4, 2023

Adani's Debt Load The investment side of the Adani story is not complete without bringing in the financing part, since the money for these investments has to come from somewhere, either internally, residual cash flows from existing operations, or externally, from new debt or equity.

Start-ups 100

Start-ups Market Capitalization Equity Marketability 100