Sun Acquisitions

NOVEMBER 17, 2023

Deal Financing: Valuation guides the selection of the proper financing structure for the deal, including how much capital is required and where it should be sourced. The valuation is based on key financial metrics such as Price-to-Earnings (P/E) ratios, Price-to-Sales (P/S) ratios, or Price-to-Book (P/B) ratios.

EBITDA 59

EBITDA Discounted Cash Flow Intangible Assets Comparable Company Analysis 59

Equilest

NOVEMBER 25, 2023

Introduction In the fiercely competitive landscape of finance, succeeding in a valuation interview requires a unique blend of knowledge, confidence, and strategic preparation. These interviews are not just a mere formality but a critical component of the hiring process in finance, investment banking, and consulting.

Discounted Cash Flow 52

Discounted Cash Flow Dividends Enterprise Value Terminal Value 52

Valutico

MAY 6, 2024

Valutico | May 7, 2024 Valuation is really important in finance. Valuation methods for mergers and acquisitions (M&A) are important for figuring out fair prices, negotiating deals, getting financing, and following rules. It’s about figuring out how much an asset or company is worth right now.

Discounted Cash Flow 52

Discounted Cash Flow Precedent Transaction Analysis Weighted Average Cost of Capital Comparable Company Analysis 52

Musings on Markets

JANUARY 9, 2021

Consider, for instance, an investor who picks stocks based upon price to book ratios, who finds a stock trading at a price to book ratio of 1.5. The first is that I do not have a macro focus, and my interests in macro variables occur only in the context of corporate finance or valuation issues.

Risk Premium 52

Risk Premium Market Capitalization Equity Start-ups 52

Musings on Markets

JANUARY 19, 2022

The results are similar if you break stocks down based upon price to book ratios or revenue growth rates. Put simply, it does not require that you believe in any risk and return model in finance, since it is based on price and expected cash flows.

Risk Premium 80

Risk Premium Risk-free Rate Start-ups Equity 80

Musings on Markets

JANUARY 6, 2023

Check rules of thumb : Investing and corporate finance are full of rules of thumb, many of long standing. For example, I have seen it asserted that a stock that trades at less than book value is cheap or that a stock that trades at more than twenty times EBITDA is expensive. Standard deviation in stock price 2. Price to Book 3.

Risk Premium 52

Risk Premium Dividends EBITDA Start-ups 52

Musings on Markets

DECEMBER 10, 2023

As someone who teaches corporate finance, I have always tried to pass on the message, especially to those who are headed to finance jobs at companies or investment banks, that of all of the players in an organization, finance people are among the most replaceable, and thus least likely to be key people.

Key Person Discount 113

Key Person Discount Start-ups Price to Book Marketability 113