Hurdle Rate Investments Sales 
Musings on Markets
FEBRUARY 10, 2021
What is a hurdle rate for a business? There are multiple definitions that you will see offered, from it being the cost of raising capital for that business to an opportunity cost , i.e., a return that you can make investing elsewhere, to a required return for investors in that business. What is a hurdle rate?
Musings on Markets
AUGUST 19, 2024
In fact, the business life cycle has become an integral part of the corporate finance, valuation and investing classes that I teach, and in many of the posts that I have written on this blog. If you are concerned that you are going to be hit with a sales pitch for that book, far from it!
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Musings on Markets
FEBRUARY 12, 2025
In this post, I will focus on how companies around the world, and in different sectors, performed on their end game of delivering profits, by first focusing on profitability differences across businesses, then converting profitability into returns, and comparing these returns to the hurdle rates that I talked about in my last data update post.
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.
CFO News Room
JANUARY 7, 2023
That said, to use mean reversion in analysis or investing, you need to know what these averages are, either over time or across companies, and data can help in that pursuit. . Check rules of thumb : Investing and corporate finance are full of rules of thumb, many of long standing.
Musings on Markets
JANUARY 5, 2024
In pursuit of an answer to that question, I used company-specific data from Value Line, one of the earliest entrants into the investment data business, to compute an industry average. Return on (invested) capital 2. Ratings & Spreads 2. Ratings & Spreads 2. Tax rates 4. Excess Returns on investments 4.
PYMNTS
FEBRUARY 16, 2017
The weakest performers fell below the returns hurdle rate across regions and across segments, the report noted. “To stay viable, they need to understand the client journeys that matter most, invest in continual client-centric innovation, adopt agile ways of working and create more effective and collaborative sales cultures.”
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