Musings on Markets

JULY 17, 2023

To the extent that some of that risk capital is coming back into the markets, equity markets have benefited, with benefits skewing more towards the companies and markets that were punished the most in 2022. trillion) to market capitalizations, regaining almost half of the value lost in last year's rout.

Marketability

Musings on Markets

OCTOBER 12, 2023

In the last two decades, this age-old investing behavior has come under the umbrella of impact investing, with several books on how to do it right, academic research on how it is working (or not), and organizations dedicated to advancing its mission.

Market Capitalization

Valutico

SEPTEMBER 22, 2023

The income-based approach determines a company’s value by assessing its anticipated future income-generating potential, employing methodologies such as Discounted Cash Flow (DCF) Analysis, Capitalization of Earnings, the Income Multiplier Method, Dividend Discount Model (DDM), and Earnings-Based Valuation.

Discounted Cash Flow

Equilest

MARCH 28, 2025

How does negative equity affect dividends? Can a company still raise capital with negative equity? This pivotal metric is typically calculated by summing the market capitalization and net debt of the organization. Is negative equity value common in startups? What are some famous companies that had negative equity?

Equity

Musings on Markets

JANUARY 6, 2023

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. Data universe : In my sample, I include all publicly traded firms with market capitalizations that exceed zero, traded anywhere in the world. Price to Book 3.

Risk Premium

Musings on Markets

FEBRUARY 27, 2022

To make comparisons, profits are scaled to common metrics, with revenues and book value of investment being the most common scalar. The largest sector, in the US, in terms of market capitalization, is information technology and I have argued that tech companies age in "dog years" , with compressed life cycles.

Start-ups

Global Finance

MAY 8, 2024

This was primarily based on revenue growth, which registered a heady 30% rise, allowing the bank to distribute its highest full-year dividend since 2008. billion), which broke the bank’s all-time quarterly record in the final quarter of 2023, when it booked a hefty NT$5.8 Meanwhile, HSBC had a banner year in Hong Kong, raking in $24.6

Banking

Musings on Markets

NOVEMBER 15, 2022

In this post, I want to focus on that point, starting with a discussion of why stories matter to investors and traders and the story that propelled the company to a trillion-dollar market capitalization not that long ago. billion in revenues in 2021.

Start-ups

ThomsonReuters

NOVEMBER 11, 2020

Do you have a shortage of working capital? Are you able to pay dividends or payments on lines of credit from suppliers? A decline in market capitalization is also a factor to consider when determining whether a triggering event for an impairment test has occurred. Are you in compliance with requirements?

Discounted Cash Flow

Musings on Markets

JANUARY 9, 2021

Consider, for instance, an investor who picks stocks based upon price to book ratios, who finds a stock trading at a price to book ratio of 1.5. buy stocks that trade at less than book value or trade at PEG ratios less than one) for individual stocks.

Risk Premium

Chris Mercer

APRIL 7, 2023

Let’s refer to the book as Pratt’s Sixth Edition. Chapter 19 is titled “Discounts for Lack of Liquidity and Lack of Marketability.” 419) The Introduction of Chapter 19 contains the following paragraph: “These two concepts of lack of liquidity and lack of marketability are related but distinctly different. .”

Marketability

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.). The notion of computing a cost of capital for a bank is fanciful and fruitless, and any attempt to compute an enterprise value for a bank is destined to end in failure.

Banking

Musings on Markets

SEPTEMBER 9, 2024

A few weeks ago, I posted on the corporate life cycle , the subject of my latest book. A Tech Star Stumbles: Intel’s Endgame In my book on corporate life cycles, I noted that even superstar companies age and lose their luster, and Intel could be a case study.

Start-ups

Musings on Markets

JANUARY 19, 2022

When you augment this price change with the dividends on the index during 2021, the total return on the S&P 500 for 2021 was 28.47%. The results are similar if you break stocks down based upon price to book ratios or revenue growth rates.

Risk Premium

Musings on Markets

FEBRUARY 4, 2023

Given the historical roots of the biggest Indian family groups, the Adani Group has been a recent entrant, not making the top ten list (in terms of either operating metrics like revenues or market-based numbers like market capitalization or enterprise value) as recently as ten years ago, and barely making the top ten list five or six years ago.

Start-ups

Musings on Markets

APRIL 20, 2025

For the market, it is often built on papers (or books) that look at the historical data on what equity markets have delivered as returns over long periods, relative to what you would have made investing elsewhere. The evidence for this strategy comes from many sources.

Start-ups

Reynolds Holding

APRIL 24, 2025

A second area of inquiry concerns dividend policy. The findings support the hypothesis that firms with loyalty shares tend to pay a smaller proportion of their earnings as dividends. The model, trained on multiple financial and structural variables, identifies Tobins Q , total assets , and share price as the strongest predictors.

Dividends

Reynolds Holding

FEBRUARY 24, 2025

It is not clear how market capitalization would be calculated in this contexte.g., whether it refers to an issuers consolidated group or only the issuing entity. The size toggle for determining federal versus state oversight is modeled off of similar concepts in the Lummis-Gillibrand bill and Hagerty discussion draft.

Banking