Musings on Markets

JANUARY 31, 2024

In my last three posts, I looked at the macro (equity risk premiums, default spreads, risk free rates) and micro (company risk measures) that feed into the expected returns we demand on investments, and argued that these expected returns become hurdle rates for businesses, in the form of costs of equity and capital.

Hurdle Rate 79

Hurdle Rate Profit and Loss Investments Accounting 79

PYMNTS

FEBRUARY 16, 2017

. “ Global Corporate Banking 2016: The Next-Generation Corporate Bank ” found that less than a third of corporate banking divisions across North America and Asia, and less than half in Europe, experienced “positive and growing economic profit” between 2013 and 2015. ”

Banking 43

Banking Hurdle Rate Benchmarking Economics 43

CFO News Room

JANUARY 7, 2023

Check rules of thumb : Investing and corporate finance are full of rules of thumb, many of long standing. I also report on pricing statistics, again broken down by industry grouping, with equity (PE, Price to Book, Price to Sales) and enterprise value (EV/EBIT, EV/EBITDA, EV/Sales, EV/Invested Capital) multiples.

Marketing 130

Marketing Valuation Corporate Finance Financial Analysis 130

Musings on Markets

JANUARY 9, 2021

The first is that I do not have a macro focus, and my interests in macro variables occur only in the context of corporate finance or valuation issues. If you use it at their jobs as corporate finance or equity analysts, I am glad to take some of that burden off you, and I hope that you find more enjoyable uses for the time you save.

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. Tax rates 4. Financing Flows 5. Insider, CEO & Institutional holdings 2. Aggregate operating numbers 3. Beta & Risk 1.

Valuation 98

Valuation Financial Analysis Analyzing Data Profit and Loss 98

Musings on Markets

JANUARY 6, 2023

Check rules of thumb : Investing and corporate finance are full of rules of thumb, many of long standing. The second is that in my line of work, which is corporate finance and valuation, the numbers I need lie in micro or company-level data, not in the macro space. EV/Sales and Price/Sales 5.

Valuation 52

Valuation Corporate Finance Financial Analysis Leverage 52