IVSC

FEBRUARY 7, 2022

Searching for stocks with low price-to-book ratios was a good indication of a potential bargain. However, book values are no longer so informative as lots of intangibles are missing from the balance sheet, and some intangibles that are on the balance sheet, including many acquired intangibles and goodwill, are very hard to interpret.

Discounted Cash Flow 252

Discounted Cash Flow Intangible Assets Marketability Price to Book 252

Musings on Markets

FEBRUARY 18, 2025

The first is that if markets are efficient, the price to book ratios will reflect the quality of these companies. In this example, for instance, business A, with a market value of equity of $150 million and a book value of equity of $60 million, will trade at 2.50

Equity 52

Equity Book Value Marketability Start-ups 52

Equilest

NOVEMBER 25, 2023

Definition: Free Cash Flow to Firm (FCFF) represents the surplus cash generated by a company's operations, available after covering expenses and necessary investments. Definition: Free Cash Flow to Equity (FCFE) is a financial metric that gauges the cash available for distribution to a company's equity holders.

Discounted Cash Flow 52

Discounted Cash Flow Dividends Enterprise Value Terminal Value 52

Musings on Markets

MAY 24, 2021

Implicit in this definition are two key components of inflation. The first is that to define purchasing power, you have to start with a definition of what you are purchasing, and this detail, as we will see, can lead to differences in inflation measured over a given period, across measures/services.

Treasury 56

Treasury Start-ups Risk Premium Price to Book 56

Musings on Markets

JANUARY 6, 2023

I also report on pricing statistics, again broken down by industry grouping, with equity (PE, Price to Book, Price to Sales) and enterprise value (EV/EBIT, EV/EBITDA, EV/Sales, EV/Invested Capital) multiples. Standard deviation in stock price 2. Price to Book 3. High-Low Price Risk Measure 5.

Risk Premium 52

Risk Premium Dividends Start-ups EBITDA 52

Musings on Markets

JULY 22, 2021

Third, I will confront the oft used contention that value is in the eye of the beholder, i.e., that Zomato is worth a lot because other investors believe it to be worth a lot, and examine a pricing rationale for Zomato. In its February 2021 VC round, Zomato was priced at close to 400 billion INR ($5.4

Marketability 99

Marketability Start-ups Equity Price to Book 99

Equilest

AUGUST 6, 2023

Understanding Company Valuation Definition of Company Valuation: Company valuation is the process of determining the economic value of a business entity. It involves assessing the company's assets, liabilities, cash flows, and future prospects to arrive at a fair and reasonable value.

Discounted Cash Flow 40

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