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Musings on Markets: Data Update 5 for 2022: The Bottom Line!

CFO News Room

Even though we live in an age where user platforms and hyper revenue growth can drive company valuations, that adage remains true. If anything, as rates have decreased over the last decade, and costs of capital for companies hit historic lows, companies are finding it more difficult to earn returns that exceed their costs of capital. .

Marketing 130
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Risk = Danger + Opportunity!

CFO News Room

Risk and Hurdle Rates In investing and corporate finance, we have no choice but to come up with measures of risk, flawed though they might be, that can be converted into numbers that drive decisions. In corporate finance, this takes the form of a hurdle rate , a minimum acceptable return on an investment, for it to be funded.

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Musings on Markets: Data Update 1 for 2023: Setting the table!

CFO News Room

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. By the same token, it is impossible to use a pricing metric (PE or EV to EBITDA), without a sense of the cross sectional distribution of that metric at the time.

Marketing 130
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Restructuring Compensation And Roles To Align For Growth

CFO News Room

” look at the Monte Carlo simulations, look at what is the hurdle rate. So, last year, valuations were high, interest rates were low. And I said, “Look, you’ve got to look at where we are with valuations, and you have to look at where the 10-year Treasury is at. Is it at 1.5%?