Musings on Markets

SEPTEMBER 5, 2024

That drop of more than $200 billion in market capitalization in response to what looked like good news, at least on the surface, puzzled market observers, though, as is their wont, they had found a reason by day end. on June 18, 2024, and a low of $92.06, on August 5, before ending at $125.61

Marketability 136

Marketability Start-ups Discounted Cash Flow Market Capitalization 136

Value Scope

NOVEMBER 3, 2023

The company’s revenue growth has slowed in recent quarters, and it has struggled to keep up with its competitors. Blackberry, the once dominant player in the smartphone market, failed to adapt to the evolution of touchscreen technology and app ecosystem in favor of physical keyboards and its web browser.

Business Valuation 130

Business Valuation Start-ups Market Capitalization Marketability 130

Musings on Markets

FEBRUARY 8, 2025

A few years ago, I wrote a paper for practitioners on the cost of capital , where I described the cost of capital as the Swiss Army knife of finance, because of its many uses. Much of the confusion in applying cost of capital comes from not recognizing that it morphs, depending on where it is being used.

Risk Premium 75

Risk Premium Beta Start-ups Equity 75

Global Finance

JUNE 18, 2024

This includes the IPO of OYO, India’s most successful hospitality startup that is looking to raise $1 billion and Ola Electric, another venture backed start up manufacturing electric scooters, looking to raise approximately $600 million.

Marketability 105

Marketability Equity Start-ups Banking 105

Musings on Markets

OCTOBER 12, 2023

The effect of impact investing in the inclusionary and exclusionary paths is through the stock price , with the buying (selling) in inclusionary (exclusionary) investing pushing stock prices up (down), which, in turn, decreases (increases) the costs of equity and capital at these firms. in the 1998-2010 time period to 5.95

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Market Capitalization Enterprise Value Start-ups Marketability 110

Musings on Markets

JANUARY 21, 2023

I will follow up by looking at the mechanics that connect stock prices to inflation, and examine why the damage from higher inflation can vary across companies and sectors. The Year in Review At the start of 2022, the S&P 500 was at 4766.18, up from 3756.07 at the start of that year. Stocks: The What?

Equity 95

Equity Risk Premium Start-ups Dividends 95

Musings on Markets

NOVEMBER 4, 2022

Investors, used to a decade of better-than-expected earnings and rising stock prices at these companies, have been blindsided by unexpected bad news in earnings reports, and have knocked down the market capitalization of these companies by hundreds of billions of dollars in the last few weeks.

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Start-ups Market Capitalization Marketability Dividends 106

Musings on Markets

JANUARY 17, 2024

While stocks had their ups and downs during the year, they ended the year strong, and recouped, at least in the aggregate, most of the losses from 2022. Stocks ended the year well, with November and December both delivering strong up movements, and while this left investors feeling good about the year, it was a rocky year.

Risk Premium 82

Risk Premium Start-ups Equity Dividends 82

Musings on Markets

MAY 20, 2022

Historical Data: 1930-2019 To see how this framework works in practice, let's start by looking at the performance of US stocks, across the decades, and look at the returns on stocks, broadly categorized based on market capitalization and price to book ratios.

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Musings on Markets

NOVEMBER 1, 2023

I was planning to start this post by telling you that Tesla was back in the news, but that would be misleading, since Tesla never leaves the news. I profited mightily on that investment, but I sold too soon , when Tesla's market capitalization hit $150 billion, and just before COVID put the company on a new price orbit.

Start-ups 127

Start-ups Marketability Market Capitalization Equity 127

Musings on Markets

SEPTEMBER 1, 2021

In the last year or so, Chinese tech companies, including shining stars like Alibaba, Tencent and Didi have also woken up to this recognition, and investors have had to readjust their expectations for these companies. The Chinese Tech Decade The rise of technology as an economic force and market driver is not unique to China.

Market Capitalization 98

Market Capitalization Marketability Start-ups Technology 98

Musings on Markets

FEBRUARY 12, 2022

In the midst of all the action, to no one's surprise, have been six stocks (Facebook, Amazon, Netflix, Google, Apple and Microsoft or FANGAM) that have largely driven US equities for the last decade, roiling the market with their most recent earnings reports.

Market Capitalization 104

Market Capitalization Equity Marketability Start-ups 104

Musings on Markets

SEPTEMBER 11, 2023

The strike by screen actors and writers which started in July is now into almost into its third month, with no end in sight, putting at risk the pipeline of movies and shows that were expected to hit theaters and streaming platforms in the next few months.

Start-ups 83

Start-ups Market Capitalization Marketability Technology 83

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. Consequently, I do report industry averages for the two fastest growing emerging markets in India and China.

Dividends 107

Dividends Risk Premium Equity Book Value 107

Musings on Markets

OCTOBER 4, 2021

Since so much of Paytm’s success has been driven by the rise if smart phone usage among Indian consumers, and the concurrent rise in mobile payments for goods and services, I will start with a review of that rise, before looking at how Paytm has put itself in position to take advantage of that market shift.

Start-ups 96

Start-ups Banking Marketability Technology 96

Musings on Markets

NOVEMBER 9, 2021

The automobile business has been in trouble for quite a while, struggling with anemic revenue growth in the aggregate, and abysmal profit margins, with even the very best in the group struggling to earn returns that match, let alone beat, their costs of capital. In sum, the company's market cap has risen from $2.8

Start-ups 101

Start-ups Dividends Marketability Market Capitalization 101

Musings on Markets

NOVEMBER 15, 2022

In my first two posts on Facebook, I noted that its most recent earnings report, and the market reaction to it, offers an opportunity for us to talk about bigger issues. Why stories matter in a numbers world If you are a numbers valuation, you start with some advantages.

Start-ups 99

Start-ups Marketability Market Capitalization Technology 99

Musings on Markets

JANUARY 27, 2022

By the end of 2021, it was clear that this bout of inflation was not as transient a phenomenon as some had made it out to be, and the big question leading in 2022, for investors and markets, is how inflation will play out during the year, and beyond, and the consequences for stocks, bonds and currencies.

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Risk-free Rate Treasury Price to Book Start-ups 99

Musings on Markets

MAY 5, 2023

The overarching questions for us all are whether this crisis will spread to the rest of the economy and market, as it did in 2008, and how banking as a business, at least in the US, will be reshaped by this crisis, and while I am more a dabbler than an expert in banking, I am going to try answering those questions.

Banking 98

Banking Equity Start-ups Treasury 98

Musings on Markets

FEBRUARY 27, 2022

In this post, I will look at corporate profitability, in all its different dimensions, and how companies across the globe, and across industries, measured up in the most recent years.

Start-ups 99

Start-ups Equity Book Value Marketability 99

Musings on Markets

OCTOBER 6, 2023

A few days ago, I valued Instacart ahead of its initial public offering , and noted that the reception that the stock gets will be a good barometer of where risk capital stands in the market, right now. To understand why, consider how fixed assets (such as plant and equipment and equipment) become part of the balance sheet.

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Intangible Assets Book Value Equity Start-ups 129

Musings on Markets

DECEMBER 10, 2021

One of the big news stories of last week was Jack Dorsey stepping down as CEO of Twitter, and the market's response to that news was to push up Twitter's stock price by almost 10%. In this section, I will begin by looking at the mythology behind this push, and why it does not hold up to common sense questioning.

Start-ups 99

Start-ups Marketability Technology Market Capitalization 99

Valutico

JANUARY 17, 2023

The company has a leading position in the Southeast Asian market with their e-commerce platform Shoppee and their gaming offers by Garena. Sea currently has a market capitalization of $29.8 billion and $327 million respectively, up 39% and 141% year-on-year. As market sentiment changed globally during 2022, Sea Ltd.

Discounted Cash Flow 52

Discounted Cash Flow Market Capitalization Equity Start-ups 52

Valutico

JANUARY 23, 2023

Weekly Valuation – Valutico | 23 January 2023 Link to valuation Source: WeWork, [link] About WeWork WeWork is a leading provider of co-working spaces for businesses of all sizes, from start-ups to large corporations, with a global presence of over 700 offices in more than 35 countries. Which will it be?

Discounted Cash Flow 52

Discounted Cash Flow Start-ups Market Capitalization Finance 52

Musings on Markets

FEBRUARY 2, 2023

The first of the is as companies scale up, there will be a point where they will hit a growth wall, and their growth will converge on the growth rate for the economy. In short, I am assuming that the price cuts and cost pressures of the fourth quarter are more representative of what Tesla will face in the future, as competition steps up.

Start-ups 99

Start-ups Risk-free Rate Market Capitalization Marketability 99

Valutico

DECEMBER 4, 2023

Many Netflix originals prove to be performing well which is part of the reason why they expect their Q4 revenue to be $8.7B, up 11% year-over-year. Stock Market Implications In the recent past, most notably in 2020 and 2021, Netflix experienced considerable growth in the stock market. Youtube), Apple Inc. Amazon Prime Video).

Discounted Cash Flow 52

Discounted Cash Flow EBIT Start-ups EBITDA 52

Andrew Stolz

JULY 5, 2021

It had to be able to stand up to rigorous scrutiny from finance academics and professionals. It had to be clear whether a company was moving up or down in that ranking. Started with 26,000 companies. It had to be a measure that, if improved, could be shown to increase the value of the business. What is a World Class Company?

Start-ups 52

Start-ups Finance Market Capitalization Marketability 52

Musings on Markets

JANUARY 6, 2023

In my last post, I talked about the ritual that I go through every year ahead of my teaching each spring, and in this one, I will start on the first of a series of posts that I make at the start of each year, where I look at data, both macro and company-level. That is not true!

Risk Premium 52

Risk Premium Dividends Start-ups EBITDA 52

Valutico

JULY 25, 2023

This inherent interconnection has given the new platform a head start, providing a massive user base at the get-go.It The success of Threads will hinge on its ability to one-up Twitter. In comparison to Meta’s market capitalization of USD 730 billion we suggest that the company is fairly valued. Microsoft Corporation.

Discounted Cash Flow 10

Discounted Cash Flow EBIT Start-ups EBITDA 10

Equilest

FEBRUARY 24, 2024

Get started now for free and unlock the power of Equitest to make informed decisions about your business's financial future. Register here to start using Equitest today. Get started now for free and unlock the power of Equitest by registering here.

Business Valuation 40

Business Valuation Discounted Cash Flow Book Value Liquidation Value 40

Valutico

JANUARY 3, 2024

As per the statistics published by Nilson Report in May 2023, the market share of Visa in the total purchase transactions on global general card networks for 2022 was 39% whereas the shares of Mastercard and UnionPay were 24% and 34% respectively. billion (up 11% y-o-y) and GAAP net income of $17.3 billion (up 15% y-o-y).

Discounted Cash Flow 52

Discounted Cash Flow EBIT Start-ups Banking 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

Global Finance

MAY 6, 2025

There was a strong uptick in geopolitical uncertainty and market volatility, helping to bolster trading revenues, which were up across the board in Western Europe. Wealth management and investment banking were growth areas, according to Nigel Moden, banking and capital markets lead at EY. billion, up 20.2%

Banking 52

Banking Start-ups Marketability Finance 52

Musings on Markets

APRIL 21, 2022

In the years since, those user numbers have grown, as can be seen in the chart below: In keeping with disclosure practices at other user-based companies, in 2017, Twitter also started tracking and reporting the users who were most active on its platform, by looking at daily usage, and counting daily active users (DAU).

Start-ups 115

Start-ups Marketability Technology Market Capitalization 115

Reynolds Holding

APRIL 4, 2022

Seeing these ads reminded me that, in the lead-up to the financial crisis, subprime lender AmeriQuest advertised in the Super Bowl. The dot-com bubble burst, though, created significant tremors in our markets. As in other start-up fields, many projects likely could fail. It went defunct in 2007.

Marketability 65

Marketability Banking Start-ups Compliance 65

Chris Mercer

AUGUST 1, 2022

This 2008 version had information on 477 restricted stock transactions, up from 430 transactions in the 2004 version. There were 231 transactions after April 1997, when the SEC’s period of restriction was reduced from two years to one year (up from 182 transactions in the 2004 version). Conclusion.

Dividends 52

Dividends Appraisal Marketability Start-ups 52

Musings on Markets

DECEMBER 2, 2020

On Monday, November 16, Airbnb filed it’s preliminary prospectus with the SEC, starting the clock on its long awaited initial public offering. In this section, I will start with a brief history of the company, move on to reviewing its financials leading into 2020, and then look at how it has performed in 2020.

Start-ups 52

Start-ups Marketability Equity Market Capitalization 52