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Return on Equity, Earnings Yield and Market Efficiency: Back to Basics!

Musings on Markets

While I was working on my last two data updates for 2025, I got sidetracked, as I am wont to do, by two events. With these characteristics, the accounting balance sheets for these companies will be identical right after they start up, and the book value of equity will be $60 million in each company.

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Invisible, yet Invaluable: Valuing Intangibles in the Birkenstock IPO!

Musings on Markets

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.

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Distressed Debt Hedge Funds: How to Become a Vulture Capitalist

Brian DeChesare

Some people can do very well at dedicated distressed funds, but in most cases, you’d be better off pursuing the strategy at a broader credit or event-driven hedge fund : What Are Distressed Debt Hedge Funds? Within the “event-driven” category, distressed funds fit in as shown below: How Are Distressed Debt Hedge Funds Different?

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M&A Deal Killers: Business Deal Breaker #4

Viking Mergers

You may have also had your assets valued for tax purposes, and in this case, they may have been appraised at a cost that depreciated over time. This method would deplete the value of your assets and lower the total value of your inventory.

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EV/EBITDA Explained: A Key Valuation Multiple for Investors

Valutico

While the nuances differentiating EBITDA and adjusted EBITDA might appear subtle, they play a critical role in financial evaluations, particularly during M&A due diligence or when assessing companies with unusual financial events. One-time gains or losses: Expenses or income events that are not recurring and unusual in nature (e.g.,

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Valuation Decision Finds LLC “Worthless, Worthless, Worthless”

Farrel Fritz

Garibaldi valued Quattro using an asset approach based upon its “book value” as stated in its financial statement and tax return for the period ended December 31, 2015. One might question the Court’s consideration of post-breach events as supporting the value of Quattro’s majority interest. Thoughts on Quattro.

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How an Objective Business Valuation Can Produce Better Results

Shuster & Co.

The valuation process may incorporate different methods for determining a company’s value. This objectivity and professionalism are critical since valuations can often play a role in many significant company events that can profoundly impact the company’s financial circumstances and the finances of owners or shareholders.