Valutico

MAY 19, 2025

The core idea behind relative valuation is to estimate a company’s value by comparing it to similar companies based on how the market prices their financial metrics. EV/EBITDA is a widely used multiple in this relative valuation approach. What is EV/EBITDA? Breaking down the multiple What is EBITDA?

EBITDA 52

EBITDA Enterprise Value Capital Structure EBIT 52

Musings on Markets

JANUARY 10, 2025

Not surprisingly, the company listings are across the world, and I look at the breakdown of companies, by number and market cap, by geography: As you can see, the market cap of US companies at the start of 2025 accounted for roughly 49% of the market cap of global stocks, up from 44% at the start of 2024 and 42% at the start of 2023.

Risk Premium 120

Risk Premium Dividends Start-ups Corporate Finance 120

Musings on Markets

APRIL 7, 2025

In percentage terms, energy stocks have lost the most in value, with market capitalizations dropping by 14.2%, dragged down by declining oil prices. trillion) were close in percentage terms to the losses in the rest of the market. Other Markets As equity markets reacted to the tariff announcement, other markets followed.

Marketability 93

Marketability Risk Premium Start-ups Equity 93

Musings on Markets

MAY 20, 2022

In general, higher and more volatile inflation has negative effects on all financial assets, from stocks to corporate bonds to treasury bonds, and neutral to positive effects on gold, collectibles and real assets. The former is short hand for the small cap premium and the latter is the proxy for the value factor in returns.

Price to Book 103

Price to Book Dividends Beta Equity 103

Musings on Markets

DECEMBER 2, 2020

Cost of Capital & Failure Risk : For the cost of capital, I will assume that Airbnb’s cost of capital will be 6.50%, close to the cost of capital of hotel companies, to start the valuation, but over time, it will rise to 7.23%, reflecting an expected increase in the treasury bond rate from current levels to 2% in 2031.

Start-ups 52

Start-ups Marketability Equity Market Capitalization 52

Musings on Markets

MARCH 19, 2022

The table below summarizes the market cap change, by region of the world: It is no surprise that Eastern Europe and Russia, which are in the eye of the hurricane, have seen the most damage to equities, but other than the Middle East, every other equity market in the world is down, with the US, EU and China shedding significant market capitalization.

Start-ups 100

Start-ups Risk Premium Equity Market Capitalization 100

Equidam

APRIL 22, 2025

4] , [3] , [5] Unlike mature, publicly listed companies which are easier to compare using multiples of current earnings (like EBITDA) [3] , startups must be valued based on their projected future; moats, margins and the perceived strength of their future growth trajectory. [3] 23] Higher rates increase the base cost of capital.

Discounted Cash Flow 64

Discounted Cash Flow Terminal Value Marketability EBITDA 64