Musings on Markets

AUGUST 15, 2023

I was reminded of that paper a few weeks ago, when Fitch downgraded the US, from AAA to AA+, a relatively minor shift, but one with significant psychological consequences for investors in the largest economy in the world, whose currency still dominates global transactions. Why does the risk-free rate matter?

Investments 80

Investments Currencies Treasury Hurdle Rate 80

Musings on Markets

JANUARY 9, 2021

That said, it does mean that any broad conclusions (about profitability and revenues) that emerge from my data apply to public companies, and it may be dangerous to extrapolate to private businesses, especially in a year like 2020 where private businesses could have been affected more adversely by COVID shutdowns than public companies.

Valuation 52

Valuation Currencies Numbers Corporate Finance 52

Musings on Markets

JANUARY 5, 2024

In my corporate finance class, I describe all decisions that companies make as falling into one of three buckets – investing decisions, financing decision and dividend decisions. Valuation Pricing Growth & Reinvestment Profitability Risk Multiple s 1. Profit Margins 1. Aggregate operating numbers 3. Be patient.

Valuation 98

Valuation Financial Analysis Analyzing Data Profit and Loss 98