Andrew Stolz

NOVEMBER 17, 2021

When I started in finance, buybacks were almost unheard of; now, companies prefer to distribute cash through buybacks. companies have distributed more money through buybacks than through dividends. This pushes companies to buy back shares rather than issue dividends. Chart from Kroen (2021).

Dividends 52

Dividends Banking Capital Structure Start-ups 52

Musings on Markets

MAY 20, 2022

Historical Data: 1930-2019 To see how this framework works in practice, let's start by looking at the performance of US stocks, across the decades, and look at the returns on stocks, broadly categorized based on market capitalization and price to book ratios.

Price to Book 96

Price to Book Dividends Beta Equity 96

Andrew Stolz

JANUARY 24, 2022

Green shift to stay competitive requires CAPEX ramp-up. Strong years ahead lead to attractive dividend yields. Over the past year, the stock price saw a strong rally, up 50% YTD. Most European countries have already closed their coal plants and started to phase out fossil fuels. Download the full report as a PDF.

Dividends 52

Dividends Start-ups Business Valuation Marketability 52

ThomsonReuters

APRIL 25, 2024

Guide your clients on when to start receiving Social Security benefits. Consider the overall financial picture to determine the optimal time to start receiving Social Security. The thresholds for taxation can change, so it’s important for accountants to stay up to date on the current rules. Delay Social Security.

Dividends 52

Dividends Start-ups Compliance 52

Andrew Stolz

JANUARY 17, 2022

Value play with strong dividend growth potential. However, most recently, the 50 DMA started to rise, and it seems like it can cross the 200DMA very soon. Instead of exporting to China, Volvo aims to ramp up sales by establishing a production site in the country. With the acquisition, Volvo aims to ramp up its sales in China.

Marketability 52

Marketability Dividends Net Debt Start-ups 52

Musings on Markets

MAY 7, 2023

In this post, I will begin by looking at how to value banks and follow up with an examination of investor views of banking have changed, by looking at pricing, before examining divergences in how banks are priced in the market today. Note the differences between the bank FCFE and bank dividend discount models.

Banking 63

Banking Price to Book Dividends Book Value 63

Musings on Markets

JANUARY 28, 2024

micro uncertainties, into discount rates, and in the process, they end up incorporating risk that investors can eliminate, often at no cost. He followed up by showing that holding diversified portfolios can deliver much higher returns, for given levels of risk, for all investors.

Risk Premium 93

Risk Premium Beta Start-ups Equity 93

Andrew Stolz

FEBRUARY 10, 2022

So far, the construction progress is on track and the terminal could start operations by late 2022 already. Philippine energy companies are required to start green transition soon. It makes up 20% of the country’s total renewable energy capacity. FGEN paid out stable and growing dividends. metric tons. Ratios – First Gen.

Dividends 52

Dividends Start-ups Marketability Business Valuation 52

Andrew Stolz

FEBRUARY 2, 2022

Attractive dividend yield could rise above 5%. Its manufacturing plants in the US and Thailand could start operations by 2023. Investments in AI and semiconductor drive up costs. Attractive dividend yield could rise above 5%. Also, the dividend yield might be worth a look from an investor perspective. Conclusions.

Dividends 52

Dividends Start-ups Marketability Technology 52

Musings on Markets

JANUARY 11, 2024

Continuing an annual ritual of long standing, ahead of starting my spring teaching at NYU starting in a couple of weeks, I would like to invite you, if you are interested, to come along for the ride. In short, you can start with the regular class in January 2024 and stretch out the class over 12 months or 18 months, if you want to.

Corporate Finance 128

Corporate Finance Finance Start-ups Dividends 128

Musings on Markets

SEPTEMBER 27, 2022

In my early 2021 posts on inflation, I argued that while the higher inflation that we were just starting to see could be explained by COVID and supply chain issues, prudence on the part of policy makers required that it be taken as a long term threat and dealt with quickly. in the NY Fed survey. in the NY Fed survey.

Risk Premium 74

Risk Premium Treasury Start-ups Equity 74

ThomsonReuters

SEPTEMBER 8, 2023

Anyone starting a business should consult a qualified tax professional, such as an accountant or tax attorney, for advice on which corporate structure best fits their goals—but it helps to understand some of the factors that typically influence such decisions. How do you start a C corp? Instead, they pay up to 13.3%

Start-ups 75

Start-ups Compliance Dividends Business Enterprise 75

Andrew Stolz

APRIL 17, 2020

Rather it is based on investors’ critical thinking, due diligence, and using methods that combine value and growth strategies such as Peter Lynch’s PEG and dividend adjusted-PEG ratios. For example, Priceline.com fell from $94 per share to less than $4 per share within eight months starting from March 2000 to November 2000 (Kleinbard, 2000).

Dividends 52

Dividends Discounted Cash Flow Start-ups Marketability 52

Audit Board

OCTOBER 11, 2023

When you get comfortable with it and start enjoying the benefits, it will feel less like hard work. I knew I wanted to make some big changes, and when two non-executive director positions opened up I recognised it as a golden opportunity. Find someone in your digital network who is also attending and arrange to meet up.

Start-ups 52

Start-ups Dividends 52

Musings on Markets

MAY 6, 2022

In most time periods, those recalibrations and resets tend to be small and in both directions, resulting in the ups and downs that pass for normal volatility. Clearly, we are not in one of those time periods, as markets approach bipolar territory, with big moves up and down.

Risk Premium 92

Risk Premium Treasury Start-ups Equity 92

A Neumann & Associates

JUNE 9, 2023

Where do I start? Ideally, you will want to start thinking about and planning the process several years before you want to sell. It is important to know that the process of selling your business can take up to 8 to 12 months. What is my company worth? What is the process? How do I find the right buyers?

Mergers & Acquisitions 83

Mergers & Acquisitions Start-ups Dividends Marketability 83

ThomsonReuters

MAY 6, 2022

If you offer a variety of tax and accounting services, you’ll likely have clients who aren’t signed up for all of them. Segment your client list into different services and approach them with an offer to sign up for any additional ones they don’t have. Reduce inefficient spending.

Accounting Firms 87

Accounting Firms Start-ups Marketability Dividends 87

Musings on Markets

DECEMBER 21, 2022

Starting in late January 2023, I will be back in the classroom, teaching valuation and corporate finance to the MBAs and valuation to the undergraduates, and these classes will continue through May 2023. The class starts with a question of what the end game should be for a business (profitability, value, social good?),

Corporate Finance 89

Corporate Finance Finance Start-ups Marketability 89

Musings on Markets

JANUARY 8, 2022

To start the year, I returned to a ritual that I have practiced for thirty years, and that is to take a look at not just market changes over the last year, but also to get measures of the financial standing and practices of companies around the world. Happy New Year, and I hope that 2022 brings you good tidings! Sometimes, less is more!

Risk Premium 91

Risk Premium Start-ups Market Capitalization Corporate Finance 91

Valutico

DECEMBER 15, 2022

SaaS start-ups are valued at 10x Sales”. The higher up in the P&L statement the metric is that is selected, the more assumptions are made on the similarity of operations of the respective companies. . Often used for very small businesses and early stage companies. Examples: . Pharmacies are valued at 0.8x – 1.2x

Precedent Transaction Analysis 52

Precedent Transaction Analysis EBITDA Comparable Company Analysis Enterprise Value 52

Valutico

DECEMBER 15, 2022

SaaS start-ups are valued at 10x Sales”. The higher up in the P&L statement the metric is that is selected, the more assumptions are made on the similarity of operations of the respective companies. . Often used for very small businesses and early stage companies. Examples: . Pharmacies are valued at 0.8x – 1.2x

Precedent Transaction Analysis 52

Precedent Transaction Analysis EBITDA Comparable Company Analysis Enterprise Value 52

Musings on Markets

NOVEMBER 9, 2021

As I have valued Tesla over the years, I have come to the realization that it is the most 'uncar-like" automobile company in the world, and its uniqueness shows up on two dimensions. Put simply, the company has been able to scale up more quickly, while reinvesting less in capacity, than any other automobile company.

Start-ups 99

Start-ups Dividends Marketability Market Capitalization 99

ThomsonReuters

APRIL 18, 2023

It may also include dividends paid. The net cash from all three of these sections is then added up to determine the net increase or decrease in cash during the period. To illustrate this point, consider the following example from the Harvard Business School: Your client started the year with approximately $10.75

Finance 59

Finance Start-ups Dividends Equity 59

ThomsonReuters

NOVEMBER 10, 2020

These rules include not only the TCJA GILTI, but also the FDII and BEAT calculations as well as the legacy Subpart F, Foreign Dividends, and U.S. Makes the individuals who update the spreadsheets responsible for reviewing and accurately applying the law and ensuring all information is up to date and accurate. FTC calculations.

Dividends 52

Dividends Treasury Start-ups Technology 52

Musings on Markets

OCTOBER 12, 2023

The effect of impact investing in the inclusionary and exclusionary paths is through the stock price , with the buying (selling) in inclusionary (exclusionary) investing pushing stock prices up (down), which, in turn, decreases (increases) the costs of equity and capital at these firms. in the 1998-2010 time period to 5.95

Market Capitalization 82

Market Capitalization Enterprise Value Start-ups Marketability 82

Brian DeChesare

AUGUST 31, 2022

But before delving into the best candidates for these roles, typical trades, careers, and more, let’s start with the basic definitions: What is a Convertible Arbitrage Hedge Fund? If the stock price goes up or down by 10%, but the volatility stays the same, you might not earn or lose anything on the trade.

Banking 67

Banking Risk-free Rate Equity Start-ups 67

Brian DeChesare

AUGUST 10, 2022

But before delving into the exit opportunities and the long-term outlook, let’s start with the fundamentals: Oil & Gas Investment Banking Defined. Because the risk of searching for new energy sources and experimentally drilling is so high, many E&P firms set up joint ventures to distribute the risk.

Banking 88

Banking EBITDA Dividends Equity 88

Musings on Markets

FEBRUARY 27, 2022

In this post, I will look at corporate profitability, in all its different dimensions, and how companies across the globe, and across industries, measured up in the most recent years. Not surprisingly, then, the net effect of growth will depend on how much is reinvested back, relative to what the company can harvest as future growth.

Start-ups 80

Start-ups Equity Book Value Marketability 80

Musings on Markets

DECEMBER 15, 2021

At the start of every semester for as long as I can remember, I have invited people to sit in informally on my classes at NYU or take the shorter online versions on my website. If you have a bigger budget, I would try to emulate Professor Andrew Lo , who described his astounding set up for teaching last year.)

Corporate Finance 56

Corporate Finance Finance Start-ups Technology 56

ThomsonReuters

JUNE 14, 2021

“That’s because a partner can earn several types of income on Schedule K-1, including rental income from a partnership’s real estate holdings and income from bond interest and stock dividends.”. This reduces the time needed to process a K-1 form from up to an hour to about 15 seconds, Hurd says.

Compliance 98

Compliance Dividends Start-ups Technology 98

ThomsonReuters

MARCH 1, 2024

How a corporate tax software can help filing S corporation taxes Setting up your business as an S corporation (S corp) provides several tax advantages that are not available to owners of C corporations (C corp) or Limited Liability Companies (LLCs). An exhaustive list of possible deductions is hard to come up with, because there are so many.

Start-ups 52

Start-ups Dividends Marketability 52

Musings on Markets

JANUARY 12, 2021

I also start thinking about my passion, which is teaching, the spring semester to come, and the classes that I will be teaching, repeating a process that I have gone through every year since 1984, my first year as a teacher. Face up to uncertainty, rather than avoid or deny it : Uncertainty is a feature of investing/ business, not a bug.

Corporate Finance 52

Corporate Finance Start-ups Finance Marketability 52

Musings on Markets

JANUARY 17, 2024

While stocks had their ups and downs during the year, they ended the year strong, and recouped, at least in the aggregate, most of the losses from 2022. Stocks ended the year well, with November and December both delivering strong up movements, and while this left investors feeling good about the year, it was a rocky year.

Risk Premium 77

Risk Premium Start-ups Equity Treasury 77

Musings on Markets

AUGUST 5, 2023

As part of that obsession, since September 2008, I have estimated an equity risk premium for the S&P 500 at the start of each month, and not only used that premium, when valuing companies during that month, but shared my estimate on my webpage and on social media.

Risk Premium 78

Risk Premium Equity Start-ups Treasury 78

ThomsonReuters

JANUARY 9, 2024

Setting up your business as a C corporation (C corp) has many benefits, including greater ownership flexibility and more growth potential than an S corporation (S corp) or a Limited Liability Company (LLC). In any case, dividends from a C corp are reported on Form 1099-DIV , and these forms are due each year on Mar.

Dividends 52

Dividends Start-ups 52

Musings on Markets

JANUARY 5, 2024

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. Dividends and Potential Dividends (FCFE) 1. Beta & Risk 1. Return on Equity 1.

Dividends 98

Dividends Risk Premium Equity Book Value 98

Brian DeChesare

JANUARY 4, 2023

In March, the Fed finally started hiking rates, and in May and June, the pace accelerated; the federal funds rate ended the year in the 4.25% – 4.50% range, the highest level since 2007. Here it is as of January 3 rd , with differences vs. the start of 2022 in brackets: Equities: 31% [Down 7%]. Treasuries: 19% [Up 19%].

Marketability 91

Marketability Start-ups Treasury Dividends 91