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9 Startup Valuation Methods: 5 to Use, 4 to Avoid

Equidam

Critiquing Unsuitable Methods for High-Growth Startups Several traditional or overly simplistic methods fail to adequately capture the unique characteristics of technology startups. butcher, barber) where assets are tangible and customer acquisition straightforward, it breaks down for technology startups.

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Precision in Valuation: Integrating the Beneish M-Score for Accurate Business Worth

Equilest

So let's get started and discover the keys to accurate valuation! By identifying earnings manipulation and guaranteeing more accurate firm values, this clever little technology is here to save the day. It's like a financial health check-up, examining everything from sales patterns to asset quality.

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Return on Equity, Earnings Yield and Market Efficiency: Back to Basics!

Musings on Markets

I pointed to the flaw in the logic, but the comments thereafter suggested such deep confusion about what returns on equity or capital measure, and what comprises an efficient market, that I think it does make sense to go back to basics and see if some of the confusion can be cleared up.

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Data Update 1 for 2025: The Draw (and Danger) of Data

Musings on Markets

It is the end of the first full week in 2025, and my data update for the year is now up and running, and I plan to use this post to describe my data sample, my processes for computing industry statistics and the links to finding them. In the table below, we compare the changes in regional market capitalizations (in $ millions) over time.

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Data Update 8 for 2025: Debt, Taxes and Default - An Unholy Trifecta!

Musings on Markets

When the debt is within reasonable bounds (scaling up with the company), a company can borrow money, and not lower its ratings. Even if bond ratings drop, a business may be worth more, at that lower rating, if the tax benefits from the debt offset the higher default risk.

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Data Update 6 for 2025: From Macro to Micro - The Hurdle Rate Question!

Musings on Markets

In the first five posts, I have looked at the macro numbers that drive global markets, from interest rates to risk premiums, but it is not my preferred habitat. The second set of inputs are prices of risk, in both the equity and debt markets, with the former measured by equity risk premiums , and the latter by default spreads.

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Investing Politics: Globalization Backlash and Government Disruption!

Musings on Markets

I will start with a couple of confessions. Thus, my estimates of equity risk premiums, updated every month, are not designed to make big statements about markets but more to get inputs I need to value companies.