Equilest

NOVEMBER 25, 2023

One key emphasis is on the Price to Book Value multiple. The Price to Book Value multiple, which compares a bank's market value to its book value, becomes crucial. Emphasizing Unique Considerations: Valuing a bank requires a distinct approach due to the nature of its operations.

Discounted Cash Flow 52

Discounted Cash Flow Dividends Enterprise Value Terminal Value 52

Musings on Markets

MARCH 25, 2021

Interest Rates and Value As interest rates have risen, the discussion in markets has turned ito the effects that these rates will have on stock prices.

Equity 52

Equity Risk-free Rate Treasury Start-ups 52

Reynolds Holding

NOVEMBER 8, 2023

MVA can be understood as the Price-to-Book ratio; however, the book value has been refined to account for economic adjustments. The Market Value Added (MVA) Spread from the ISS EVA framework serves to assess company valuation.

Enterprise Value 52

Enterprise Value Price to Book Marketability Book Value 52

Musings on Markets

MARCH 19, 2022

Slicing the data based on sector yields the following: Against, there are no surprises, with energy being the only sector to post positive returns and with consumer discretionary and technology generating the most negative returns.

Start-ups 100

Start-ups Risk Premium Equity Market Capitalization 100

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 52

Risk Premium Market Capitalization Equity Start-ups 52

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

JANUARY 19, 2022

The results are similar if you break stocks down based upon price to book ratios or revenue growth rates.

Risk Premium 80

Risk Premium Risk-free Rate Start-ups Equity 80

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. Understanding the company's financial health is fundamental to valuation.

Discounted Cash Flow 40

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

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. Standard deviation in stock price 2. Price to Book 3. High-Low Price Risk Measure 5. EV/Sales and Price/Sales 5. Cost of Equity 1.

Risk Premium 52

Risk Premium Dividends EBITDA Start-ups 52

Musings on Markets

MAY 24, 2021

There is a risk of reading too much into the data in this table, but the three best decades for low price to book stocks were 1940-49, 1970-79 and 1980-89, the three decades when inflation was high, and in two of those decades, inflation was much higher than expected.

Treasury 55

Treasury Start-ups Risk Premium Price to Book 55

Musings on Markets

DECEMBER 10, 2023

Are markets building in the recognition that Berkshire Hathaway's future will be in the hands of someone other than the two legendary leaders?

Key Person Discount 113

Key Person Discount Start-ups Price to Book Marketability 113

Musings on Markets

JULY 22, 2021

The second is the cost of capital, a number that most valuation classes and books (including mine) belabor to the point of diminishing returns. Finally, dismissing Zomato as an investment, just because it does not make money now, or fails to meet some conventional value tests on pricing (PE, Price to Book), is investing malpractice.

Marketability 86

Marketability Start-ups Equity Price to Book 86

Musings on Markets

FEBRUARY 4, 2023

You see similar movements in the price to book, where the stock has gone from trading under book value to 6.7 times book value, and the enterprise value, which was less than revenue in 2016-21 to 2.71 times revenues in the most recent two years.

Start-ups 100

Start-ups Market Capitalization Marketability Equity 100