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

CFO News Room

JANUARY 18, 2023

Even though we live in an age where user platforms and hyper revenue growth can drive company valuations, that adage remains true. Accounting Profit Measures. To understand the different measures of accounting profit, let us look at how each measure of profit is computed in an income statement.

Marketing 130

Marketing Hurdle Rate Investments Accounting 130

Musings on Markets

FEBRUARY 27, 2022

Even though we live in an age where user platforms and hyper revenue growth can drive company valuations, that adage remains true. Accounting Profit Measures To understand the different measures of accounting profit, let us look at how each measure of profit is computed in an income statement.

Hurdle Rate 80

Hurdle Rate Investments Accounting Entertainment 80

Musings on Markets

JANUARY 12, 2021

Thus, you and I can disagree about whether beta is a good measure of risk, but not on the principle that no matter what definition of risk you ultimately choose, riskier investments need higher hurdles than safer investments. Don't get me wrong! That tells me three things.

Valuation 52

Valuation Corporate Finance Finance Investments 52

CFO News Room

JANUARY 7, 2023

Data: Trickle to a Flood! It is perhaps a reflection of my age that I remember when getting data to do corporate financial analysis or valuation was a chore. Counter made-up numbers : It remains true that people (analysts, market experts, politicians) often make assertions based upon either incomplete or flawed data, or no data at all.

Marketing 130

Marketing Valuation Corporate Finance Financial Analysis 130

Musings on Markets

JANUARY 9, 2021

I spent the first week of 2021 in the same way that I have spent the first week of every year since 1995, collecting data on publicly traded companies and analyzing how they navigated the cross currents of the prior year, both in operating and market value terms.

Valuation 52

Valuation Currencies Numbers Corporate Finance 52

Musings on Markets

JANUARY 5, 2024

That year, I computed these industry-level statistics for five variables that I found myself using repeatedly in my valuations, and once I had them, I could not think of a good reason to keep them secret. After all, I had no plans on becoming a data service, and making them available to others cost me absolutely nothing.

Valuation 98

Valuation Financial Analysis Analyzing Data Profit and Loss 98