Musings on Markets

MAY 20, 2022

Inflation and Value When in doubt about how any action or information plays out in value, I find it useful to go back to value basics, and trace out the effects of that action/information on value drivers. 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 96

Price to Book Dividends Beta Equity 96

Reynolds Holding

FEBRUARY 5, 2023

This is direct evidence that the announcement causes expectations of firm value to be biased upward. The subsamples with higher announcement returns, which reflect greater market expectations, experience negative future returns.

Marketability 59

Marketability Alpha Equity Firm Value 59

Musings on Markets

JANUARY 5, 2024

Since I am lucky enough to have access to databases that carry data on all publicly traded stocks, I choose all publicly traded companies, with a market price that exceeds zero, as my universe, for computing all statistics. Costs of equity & capital 1. Standard Deviation in Equity/Firm Value 2. Book Value Multiples 3.

Dividends 98

Dividends Risk Premium Equity Book Value 98

Musings on Markets

JANUARY 6, 2023

Data universe : In my sample, I include all publicly traded firms with market capitalizations that exceed zero, traded anywhere in the world. Cost of Capital 3. Standard deviations in equity and firm value 4. Debt ratios (Debt to capital, Debt to EBITDA) 1. Cost of Debt 2. Price to Book 3.

Risk Premium 52

Risk Premium Dividends EBITDA Start-ups 52