Musings on Markets

MAY 7, 2023

Consequently, you can only value the equity in a bank, and by extension, the only pricing multiples you can use to price banks are equity multiples (PE, Price to Book etc.).

Banking 76

Banking Price to Book Dividends Equity 76

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.

Price to Book 125

Price to Book Dividends Equity Market Capitalization 125

Musings on Markets

JANUARY 27, 2022

I also looked at how inflation plays out on equity sub-groupings, on two dimensions, the first being market capitalization and the second being price to book, with the former becoming a stand-in for the vaunted small cap premium and the latter for the value versus growth question.

Treasury 93

Treasury Risk-free Rate Equity Price to Book 93

IVSC

FEBRUARY 7, 2022

Searching for stocks with low price-to-book ratios was a good indication of a potential bargain. This makes the task of valuation much more difficult, but also a lot more interesting. In the past, market valuations often mirrored the reported balance sheet.

Discounted Cash Flow 252

Discounted Cash Flow Intangible Assets Marketability Price to Book 252

Musings on Markets

JANUARY 6, 2023

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. Standard deviation in stock price 2. Price to Book 3. High-Low Price Risk Measure 5.

EBITDA 62

EBITDA Risk Premium Dividends EBIT 62

Value Scout

MARCH 7, 2023

These multiples include: Price to earnings (P/E) Enterprise value to EBITDA (EV/EBITDA) Enterprise value to SDI (EV/SDI) Enterprise value to Revenue (EV/Revenue) Price to book (P/B). Multiples from the comparable transaction analysis are applied to the target company’s data to decide the implied valuation range.

Business Valuation 52

Business Valuation Comparable Company Analysis EBITDA Enterprise Value 52

Musings on Markets

MARCH 25, 2021

Interest Rates and Value As interest rates have risen, the discussion in markets has turned ito the effects that these rates will have on stock prices.

Equity 52

Equity Risk-free Rate Treasury Price to Book 52