Musings on Markets

JANUARY 28, 2024

In short, if you don't like betas and have disdain for modern portfolio theory, your choice should not be to abandon risk measurement all together, but to come up with an alternative risk measure that is more in sync with your view of the world.

Risk Premium 93

Risk Premium Beta Start-ups Equity 93

Internal Audit 360

DECEMBER 8, 2022

Whatever the risk team is doing, it is not risk management , they should upgrade the methodology or be fired. Good risk managers can pretty quickly tell how does market risk cVaR compare to operational risk cVaR and whether cyber or climate are as huge as everyone makes them out to be.

EBITDA 52

EBITDA Market Risk Marketability 52

Valutico

OCTOBER 20, 2022

Practitioners assume the business is sold as a multiple of some financial metric like EBITDA, based on what they can see today for other businesses that were sold, and what these comparable trading multiples are. . Rf = Risk-free Rate. Rm – Rf) = Equity Market Risk Premium. EV/EBITDA Multiple. B = Beta. (Rm

Discounted Cash Flow 52

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

Brian DeChesare

APRIL 13, 2022

That gets you thinking about materials companies that might benefit from this trend, so you research the sector and run a screen looking for companies with FCF yields >= 10%, revenue growth >= 10%, and TEV / EBITDA multiples <= 15x. Probably 90% of hedge fund stock pitches use long/short equity or related strategies.

Equity 91

Equity Start-ups Banking Marketability 91