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Data Update 7 for 2023: Dividends, Buybacks and Cash Flows

Musings on Markets

This is the last of my data update posts for 2023, and in this one, I will focus on dividends and buybacks, perhaps the most most misunderstood and misplayed element of corporate finance. Viewed in that context, dividends as just as integral to a business, as the investing and financing decisions.

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The Dividend Discount Model (DDM): The Black Sheep of Valuation?

Brian DeChesare

When I started offering financial modeling training , I never expected to get questions about a methodology like the Dividend Discount Model (DDM). Otherwise, the written version follows: Why Use a Dividend Discount Model? The main argument in favor of the DDM is that it best represents what happens in real life when you buy a stock.

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Mercer’s Musings #2: Using Restricted Stock Studies to Support Marketability Discounts

Chris Mercer

This second musing addresses the use of restricted stock studies to support marketability discounts in gift and estate tax appraisals prepared for the Internal Revenue Service (or for anyone, for that matter). RSDs are not value drivers like EBITDA, gross profit, number of cases, or any other value drivers. of Integrated Theory 3.

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Valuation Using Multiples—What Is It and How Does It Work? Core Ideas Explained

Valutico

Valuations using multiples is one of the three main approaches to valuing a business, sometimes referred to as the ‘market-based approach’. The ratio used might be EV/EBITDA, EV/Sales, P/E or another, depending on the valuation performed and the type of business being valued. This EBITDA multiple is the EV/EBITDA ratio.

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Your Guide to Valuing a Company Using the Multiples Approach

Valutico

Valuations using multiples is one of the three main approaches to valuing a business, sometimes referred to as the ‘market-based approach’. The ratio used might be EV/EBITDA, EV/Sales, P/E or another, depending on the valuation performed and the type of business being valued. This EBITDA multiple is the EV/EBITDA ratio.

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Data Update 1 for 2024: The data speaks, but what does it say?

Musings on Markets

I have also developed a practice in the last decade of spending much of January exploring what the data tells us, and does not tell us, about the investing, financing and dividend choices that companies made during the most recent year.

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Company Valuation Methods—Complete List and Guide

Valutico

There are three primary approaches under which most valuation methods sit, which include the income approach, market approach, and asset-based approach. The market approach compares the company to similar publicly traded businesses, or those recently sold or involved in some transaction. How Do I Value a Business?