Musings on Markets

FEBRUARY 10, 2021

What is a hurdle rate for a business? In this post, I will start by looking at the role that hurdle rates play in running a business, with the consequences of setting them too high or too low, and then look at the fundamentals that should cause hurdle rates to vary across companies. What is a hurdle rate?

Hurdle Rate 52

Hurdle Rate Currencies Investments Valuation 52

Musings on Markets

JANUARY 28, 2024

In particular, there are wide variations in how risk is measured, and once measured, across companies and countries, and those variations can lead to differences in expected returns and hurdle rates, central to both corporate finance and investing judgments. What's coming?

Hurdle Rate 93

Hurdle Rate Concentration Investments Finance 93

Musings on Markets

JANUARY 9, 2021

While the universe of companies is diverse, with approximately half of all firms from emerging markets, it is more concentrated in market capitalization, with the US accounting for 40% of global market capitalization at the start of the year. If there is a hole in my sample, it is the absence of privately owned businesses.

Valuation 52

Valuation Currencies Numbers Corporate Finance 52

Musings on Markets

JANUARY 5, 2024

I also have quirks in how I compute widely used statistics like accounting returns on capital or debt ratios, and I will stay with those quirks, no matter what the accounting rule writers say. will reflect the most recent quarterly accounting filing. Insider, CEO & Institutional holdings 2. Aggregate operating numbers 3.

Valuation 98

Valuation Financial Analysis Analyzing Data Profit and Loss 98

Musings on Markets

JANUARY 20, 2021

The failures of the signal have been variously attributed to low interest rates, accounting mis-measurement of earnings (especially at tech companies), and by some, to animal spirits. Data Update 3 for 2021: Currencies, Commodities, Collectibles and Cryptos! Data Update 4 for 2021: The Hurdle Rate Question.

Treasury 52

Treasury Investments Valuation Hurdle Rate 52

Musings on Markets

JULY 25, 2023

S&P, Moody's and Fitch, in addition to rating companies for default risk, also rate governments, and they rate them both on local currency debt, as well as foreign currency debt. in my July 2023 update) and apply this scalar to the default spread, to arrive at a country risk premium.

Hurdle Rate 52

Hurdle Rate Currencies Valuation Marketing 52

Barry Ritholtz

NOVEMBER 8, 2022

CHANCELLOR: They’re buying them to manipulate the currency of China, most of all. Well, the way I see negative rate is it’s a tax on capital, which is instituted by an unelected — RITHOLTZ: Central bank. And currency declined with capital controls. They’re actually just buying long dollars, treasuries.

Valuation 56

Valuation Finance Investments Banking 56