Musings on Markets

FEBRUARY 10, 2021

What is a hurdle rate for a business? In this post, I will start by looking at the role that hurdle rates play in running a business, with the consequences of setting them too high or too low, and then look at the fundamentals that should cause hurdle rates to vary across companies. What is a hurdle rate?

Hurdle Rate 52

Hurdle Rate Currencies Investments Valuation 52

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

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.”

Banking 43

Banking Hurdle Rate Benchmarking Economics 43

Musings on Markets

FEBRUARY 15, 2023

Starting with gross margins, and computing the number for all non-financial service firms, we report the distribution of gross margins across publicly traded companies at the start of 2023, again based upon gross income and sales in the most recent twelve months: While the median gross margin across all publicly traded global firms is about 30%.,

Profit and Loss 52

Profit and Loss Investments Hurdle Rate Accounting 52

Musings on Markets

JANUARY 27, 2021

Fine art, for itself, built around in-person auctions of expensive art works saw sales plummet in the early months of 2020, as shutdowns kicked in, but saw a surge of online auctions towards the end of the year. Data Update 4 for 2021: The Hurdle Rate Question. The year (2020) had mixed effects on other collectible markets.

Currencies 52

Currencies Investments Marketing Treasury 52

CFO News Room

JANUARY 7, 2023

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 5, 2024

Employee Count & Compensation I nvesting Principle Financing Principle Dividend Principle Hurdle Rate Project Returns Financing Mix Financing Type Cash Return Dividends/Buyback s 1. Insider, CEO & Institutional holdings 2. Aggregate operating numbers 3. Beta & Risk 1. Return on Equity 1. Debt Ratios & Fundamentals 1.

Valuation 98

Valuation Financial Analysis Analyzing Data Profit and Loss 98