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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. Not surprisingly, both these forces play a role in how companies and investors set hurdle rates.

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Data Update 6 for 2023: A Wake up call for the Indebted?

Musings on Markets

In fact, that may explain why firms that trade at low EV to EBITDA multiples are more likely to become targets in leveraged buyouts (LBOs) or leveraged recapitalizations. Business risk : Not surprisingly, for any given level of cash flows and marginal tax rate, riskier firms will be capable of carrying less debt than safer firms.

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Data Update 4 for 2022: Risk = Danger + Opportunity!

Musings on Markets

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. Not surprisingly, both these forces play a role in how companies and investors set hurdle rates.

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

CFO News Room

Check rules of thumb : Investing and corporate finance are full of rules of thumb, many of long standing. When valuing or analyzing a company, I find myself looking for and using macro data (risk premiums, default spreads, tax rates) and industry-level data on profitability, risk and leverage.

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Data Update 7 for 2023: Dividends, Buybacks and Cash Flows

Musings on Markets

This is the last of my data update posts for 2023, and in this one, I will focus on dividends and buybacks, perhaps the most most misunderstood and misplayed element of corporate finance. Viewed in that context, dividends as just as integral to a business, as the investing and financing decisions.

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Data Update 1 for 2023: Setting the table!

Musings on Markets

Check rules of thumb : Investing and corporate finance are full of rules of thumb, many of long standing. When valuing or analyzing a company, I find myself looking for and using macro data (risk premiums, default spreads, tax rates) and industry-level data on profitability, risk and leverage. EV/EBIT and EV/EBITDA 4.

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Transcript: Edward Chancellor

Barry Ritholtz

I went into what’s called corporate finance, what people would see now as sort of M&A department. CHANCELLOR: Well, I was actually in a sort of subgroup there, which was called corporate strategy. But I didn’t last very long there because I thought I didn’t like corporate finance.