Musings on Markets

JANUARY 6, 2023

I do report on a few market-wide data items especially on risk premiums for both equity and debt. 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.

Risk Premium 52

Risk Premium Dividends Start-ups EBITDA 52

Musings on Markets

JANUARY 9, 2021

The second was that, starting mid-year in 2020, equity markets and the real economy moved in different directions, with the former rising on the expectations a post-virus future, and the latter languishing, as most of the world continued to operate with significant constraints.

Risk Premium 52

Risk Premium Market Capitalization Equity Start-ups 52

Musings on Markets

MAY 24, 2021

Looking at US equities, the S&P 500 is up about 11% and the NASDAQ about 5%, from start of the year levels, and the underperformance of the latter has led to a wave of stories about whether this is start of the long awaited comeback of value stocks, after a decade of lagging growth stocks.

Treasury 55

Treasury Start-ups Risk Premium Price to Book 55

Andrew Stolz

JANUARY 12, 2022

Book value is the value attributable to shareholders in case the company sells all its assets and repays its liabilities (also called liquidation value). A price-to-book ratio of less than 1x indicates that the market values the net assets less than the balance sheet suggests. What does a PB-ratio of less than 1x indicate?

EBIT 52

EBIT Price to Book Liquidation Value Book Value 52

Musings on Markets

JULY 22, 2021

Uber's ownership in Zomato is a result of Zomato's acquisition of Uber Eats India, where Uber received a share of Zomato's equity in exchange. That said, reinvestment takes a different form for companies like Zomato, with investments in technology and in acquisitions, driving future growth.

Marketability 99

Marketability Start-ups Equity Price to Book 99

Equilest

AUGUST 6, 2023

Key Financial Ratios: Ratios such as Price-Earnings Ratio (P/E), Price-to-Book Ratio (P/B), and Debt-to-Equity Ratio provide valuable insights into the company's performance and market position. Understanding the company's financial health is fundamental to valuation.

Discounted Cash Flow 40

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

Musings on Markets

MARCH 25, 2021

The first quarter of 2021 has been, for the most part, a good time for equity markets, but there have been surprises. Those rates stayed low through the rest of 2020, even as equity markets recovered and corporate bond spreads fell back to pre-crisis levels. to close to zero, and the ten-year T.Bond rate declining to close to 0.70%.

Equity 52

Equity Risk-free Rate Treasury Start-ups 52

Musings on Markets

MARCH 19, 2022

In this section, I will begin by looking at the bond market effects and then move on to equities and other asset classes, starting by looking at the localized reaction (for Ukranian and Russian securities) and then the global ripple effects. As Russian equities have imploded, the ripple effects again are being felt across the globe.

Start-ups 100

Start-ups Risk Premium Equity Market Capitalization 100

Musings on Markets

JANUARY 19, 2022

In this post, I will begin with a historical assessment of stock returns in the recent past, then move on to evaluate the returns that investors can expect to make, given how they are priced at the start of 2022, and end with a do-it-yourself valuation of the index right now. The year that was.

Risk Premium 99

Risk Premium Risk-free Rate Start-ups Equity 99

Musings on Markets

DECEMBER 10, 2023

That may explain why Berkshire's stock price was unaffected by Munger's passing. Are markets building in the recognition that Berkshire Hathaway's future will be in the hands of someone other than the two legendary leaders?

Key Person Discount 130

Key Person Discount Start-ups Price to Book Marketability 130

Musings on Markets

APRIL 20, 2025

For the market, it is often built on papers (or books) that look at the historical data on what equity markets have delivered as returns over long periods, relative to what you would have made investing elsewhere.

Start-ups 136

Start-ups Price to Book Marketability Equity 136

Musings on Markets

FEBRUARY 4, 2023

Adani's Debt Load The investment side of the Adani story is not complete without bringing in the financing part, since the money for these investments has to come from somewhere, either internally, residual cash flows from existing operations, or externally, from new debt or equity.

Start-ups 100

Start-ups Market Capitalization Marketability Equity 100

Musings on Markets

JANUARY 26, 2025

In my first two data posts for 2025, I looked at the strong year that US equities had in 2024, but a very good year for the overall market does not always translate into equivalent returns across segments of the market. In this post, I will remain focused on US equities, but I will break them into groupings, looking for differences.

Price to Book 78

Price to Book Start-ups Book Value Marketability 78