Equidam

APRIL 26, 2025

Key value drivers include intangible assets like intellectual property, the strength and experience of the founding team, the perceived size of the market opportunity, network effects, brand recognition, and, critically, the projected ability to generate significant cash flows in the future.

Discounted Cash Flow 59

Discounted Cash Flow Terminal Value Book Value Beta 59

Musings on Markets

JANUARY 5, 2024

Employee Count & Compensation I nvesting Principle Financing Principle Dividend Principle Hurdle Rate Project Returns Financing Mix Financing Type Cash Return Dividends/Buyback s 1. Beta & Risk 1. Equity Risk Premiums 2. Ratings & Spreads 2. Tax rates 4. Standard Deviation in Equity/Firm Value 2.

Dividends 106

Dividends Risk Premium Equity Book Value 106

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 82

Equity Book Value Start-ups Corporate Finance 82

Musings on Markets

FEBRUARY 15, 2023

Both accounting returns are computed based upon book value, not because we have suddenly developed trust in accounting, but because the objective is to estimate what investors have earned on what they originally invested in a company, rather than an updated or a marked-to market value.

Start-ups 52

Start-ups Equity Risk Premium Risk-free Rate 52

Musings on Markets

FEBRUARY 6, 2025

I am no expert on exchange rates, but learning to deal with different currencies in valuation is a prerequisite to valuing companies. That process of risk analysis and estimating risk premiums starts by understanding why some countries are riskier than others. Data Update 5 for 2025: It's a small world, after all!

Risk Premium 69

Risk Premium Start-ups Enterprise Value Equity 69