Musings on Markets

JANUARY 6, 2023

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. Data Items Much of my focus, when it comes to data, is on company-specific variables, rather than macro economic data, for two reasons.

Valuation

Musings on Markets

MARCH 8, 2023

In the second, Warren Buffet used some heated language to describe those who opposed buybacks, calling them “economic illiterates” and “silver tongued demagogues “. Going back in time to last year’s inflation reduction act, buybacks were explicitly targeted for taxes, with the perspective that they were damaging US companies.

Hurdle Rate

Musings on Markets

FEBRUARY 27, 2023

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.

Corporate Finance

CFO News Room

NOVEMBER 8, 2022

Because the economics of profitability start showing up particularly when you’re starting to hire other advisors and staff and team. ” look at the Monte Carlo simulations, look at what is the hurdle rate. gains tax rate where some of these clients are retiring early before they turn pension and Social Security on.

Restructuring

Barry Ritholtz

NOVEMBER 8, 2022

I mean, I didn’t want to blow my own trumpet up too much because most of the positions were in place, the quality funds, which more defensive and less leveraged, and low allocation to — a relatively low allocation to equities, and then the hedge funds sort of long/short positions that benefited in the financial crisis.

Valuation

Barry Ritholtz

DECEMBER 26, 2023

00:26:19 [Speaker Changed] It, it’s, it’s usually it is aggressive shorts from leveraged funds on s and p futures. So it’s gonna take a little more confidence, you know, and equities to, because you get your, your hurdle rates higher, you know? You can see it also in futures positioning.

Marketing

Barry Ritholtz

NOVEMBER 25, 2024

There’s very few, I would argue probably no consistent predictors of, of any sort of economic or market cyclicality. So you’ve got, you’ve got a modeling hurdle rate that you need to figure out when you’re adding diversifiers. This is implicitly leverage. No derivatives, no shorting, no leverage.

Leverage