Musings on Markets

FEBRUARY 27, 2023

To fund the business, you can either use borrowed money (debt) or owner's funds (equity), and while both are sources of capital, they represent different claims on the business. Even government-owned businesses fall under its umbrella, with the key difference being that equity is provided by the taxpayers.

Equity 52

Equity EBITDA Start-ups Net Debt 52

Valutico

MAY 6, 2024

Analysts use financial metrics and multiples such as Price to Earnings (P/E), Price to Book (P/B), Enterprise Value to Sales (EV/Sales), Enterprise Value to EBITDA (EV/EBITDA), and Price to Book (P/B) ratios derived from trading data of similar public companies or deal pricing data of similar M&A transactions.

Discounted Cash Flow 52

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

Equilest

MAY 24, 2023

Balance Sheet Forecasts Balance sheet forecasts outline the expected assets, liabilities, and equity of a company at a future date. They provide insights into the financial position, capital structure, and overall worth of the business.

Business Valuation 40

Business Valuation Discounted Cash Flow Comparable Company Analysis Net Present Value 40

Benzinga

AUGUST 23, 2023

million from the SPAC sponsor converting a loan into equity on the same terms as the PIPE. million of capital has already been committed. · This funding is expected to be anchored by investors affiliated with Sweat Equity Partners and Mercury Life Sciences. million of capital has already been committed, including $7.0

Equity 40

Equity Enterprise Value Capital Structure EBITDA 40

Brian DeChesare

JUNE 1, 2022

Power and Utilities Investment Banking Definition: In power/utilities IB, bankers advise companies that produce, transmit, and distribute electricity, natural gas, and water on raising debt and equity and completing mergers and acquisitions. It’s safe to say that they have encouraged more deal activity.

Banking 96

Banking Equity Book Value Capital Structure 96

Valutico

AUGUST 23, 2023

These cash flows typically include operating income, tax payments, and changes in working capital and capital expenditures. b) Determining the Discount Rate: The discount rate, often the weighted average cost of capital (WACC), reflects the risk associated with the company’s cash flows.

Discounted Cash Flow 52

Discounted Cash Flow Comparable Company Analysis EBITDA Enterprise Value 52

Valutico

AUGUST 10, 2023

These cash flows typically include operating income, tax payments, and changes in working capital and capital expenditures. b) Determining the Discount Rate: The discount rate, often the weighted average cost of capital (WACC), reflects the risk associated with the company’s cash flows.

Discounted Cash Flow 52

Discounted Cash Flow Comparable Company Analysis EBITDA Enterprise Value 52

Valutico

OCTOBER 20, 2022

Ce = Cost of Equity. Rm – Rf) = Equity Market Risk Premium. Cp = Cost of Equity Premium. Ce = Cost of Equity. E = Equity . Discount the Terminal Value. . Add up all the figures you have to arrive at the Net Present Value. Therefore, we can put in the following values: Equity.

Discounted Cash Flow 52

Discounted Cash Flow Terminal Value Weighted Average Cost of Capital Net Present Value 52

Musings on Markets

OCTOBER 25, 2022

Since a business can raise capital from owners (equity) and lenders (debt), the free cash flows that you compute can be to just the equity investors in the business, in which case it is free cash flow to equity , or to all capital providers in the business, as free cash flow to the firm.

Dividends 92

Dividends EBITDA Equity Start-ups 92