Musings on Markets

MAY 7, 2023

Consequently, you can only value the equity in a bank, and by extension, the only pricing multiples you can use to price banks are equity multiples (PE, Price to Book etc.).

Banking 63

Banking Price to Book Dividends Book Value 63

Sun Acquisitions

OCTOBER 13, 2023

This approach relies on analyzing the market value of comparable publicly traded companies, known as guideline companies or multiples. By comparing key financial metrics such as price-to-earnings (P/E) ratios, price-to-sales (P/S) ratios, and price-to-book (P/B) ratios, analysts can estimate the target company’s value.

Discounted Cash Flow 59

Discounted Cash Flow Book Value Liquidation Value Price to Book 59

Valutico

MAY 6, 2024

Market-based methods like Comparable Companies Analysis and Precedent Transactions Analysis offer relative measures of value based on market data. Income-based methods such as Discounted Cash Flow analysis focus on future cash flows to determine value. Excerpted from the book “Valuation for Mergers and Acquisitions” by Barbara S.

Discounted Cash Flow 52

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

Equilest

AUGUST 6, 2023

Key Financial Ratios: Ratios such as Price-Earnings Ratio (P/E), Price-to-Book Ratio (P/B), and Debt-to-Equity Ratio provide valuable insights into the company's performance and market position. 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

Musings on Markets

JULY 17, 2023

In 2022, old-time value investors felt vindicated, as the damage that year was inflicted on the highest growth companies, especially in technology.

Marketability 95

Marketability Risk Premium Start-ups Treasury 95

IVSC

FEBRUARY 7, 2022

Searching for stocks with low price-to-book ratios was a good indication of a potential bargain. This makes the task of valuation much more difficult, but also a lot more interesting. In the past, market valuations often mirrored the reported balance sheet.

Discounted Cash Flow 252

Discounted Cash Flow Intangible Assets Marketability Price to Book 252

Musings on Markets

FEBRUARY 4, 2023

The PE ratio for the stock has gone from a modest 15 times earnings in the 2016-21 time period to 214 times earnings in the most recent two years, and the enterprise value has jumped from about 12 times EBITDA during 2016-21 to 53 times EBITDA in the most recent two years. times revenues in the most recent two years.

Start-ups 100

Start-ups Market Capitalization Marketability Equity 100