Musings on Markets

JANUARY 27, 2022

The treasury curve became steeper, but only at the shortest end of the spectrum, with the slope rising for the 2-year, relative to the 3-month, but not at all, when comparing the 10-year to the 2-year rate.

Risk-free Rate 99

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

Musings on Markets

MAY 20, 2022

In general, higher and more volatile inflation has negative effects on all financial assets, from stocks to corporate bonds to treasury bonds, and neutral to positive effects on gold, collectibles and real assets. 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 103

Price to Book Dividends Beta Equity 103

Musings on Markets

JULY 17, 2023

In my third post at the start of 2023, I looked at US treasuries, the long-touted haven of safety for investors. In 2022, they were in the eye on the storm, with the ten-year US treasury bond depreciating in price by more than 19% during the year, the worst year for US treasury returns in a century.

Marketability 98

Marketability Risk Premium Start-ups Treasury 98

Musings on Markets

FEBRUARY 18, 2025

The first is that if markets are efficient, the price to book ratios will reflect the quality of these companies. In this example, for instance, business A, with a market value of equity of $150 million and a book value of equity of $60 million, will trade at 2.50

Equity 52

Equity Book Value Marketability Start-ups 52

Musings on Markets

MAY 24, 2021

Interest rates : To understand the link between expected inflation and interest rates, consider the Fisher equation, where a nominal riskfree interest rate (which is what treasury bond rates) can be broken down into expected inflation and expected real interest rate components.

Treasury 56

Treasury Start-ups Risk Premium Price to Book 56

Valutico

MAY 19, 2025

Cash & Cash Equivalents: Highly liquid assets like physical cash, bank balances, marketable securities (short-term investments easily converted to cash), a nd treasury bills. Other metrics like Price-to-Book or Dividend Yield are typically more relevant for these sectors.

EBITDA 52

EBITDA Enterprise Value Capital Structure EBIT 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. Micro Data The focus of my data collection is understanding how companies are operating and how investors are pricing them.

Risk Premium 52

Risk Premium Market Capitalization Equity Start-ups 52