CFO News Room
JANUARY 18, 2023
Even though we live in an age where user platforms and hyper revenue growth can drive company valuations, that adage remains true. The largest sector, in the US, in terms of market capitalization, is information technology and I have argued that tech companies age in “dog years” , with compressed life cycles.
Musings on Markets
JANUARY 12, 2021
Thus, you and I can disagree about whether beta is a good measure of risk, but not on the principle that no matter what definition of risk you ultimately choose, riskier investments need higher hurdles than safer investments. pm (New York time) Valuation (MBA): Mondays & Wednesdays, 2.00 Don't get me wrong!
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Musings on Markets
FEBRUARY 27, 2022
Even though we live in an age where user platforms and hyper revenue growth can drive company valuations, that adage remains true. The largest sector, in the US, in terms of market capitalization, is information technology and I have argued that tech companies age in "dog years" , with compressed life cycles.
CFO News Room
JANUARY 20, 2023
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. In corporate finance, this takes the form of a hurdle rate , a minimum acceptable return on an investment, for it to be funded.
Musings on Markets
FEBRUARY 8, 2022
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. In corporate finance, this takes the form of a hurdle rate , a minimum acceptable return on an investment, for it to be funded.
Musings on Markets
JANUARY 9, 2021
Thus, an analyst who follows young technology companies may decide that paying ten times revenues for a company is a bargain, if all of the companies that he tracks trade at multiples greater than ten times revenues. It is very likely that these rules of thumb were developed from data and observation, but at a different point in time.
CFO News Room
JANUARY 7, 2023
Data: Trickle to a Flood! It is perhaps a reflection of my age that I remember when getting data to do corporate financial analysis or valuation was a chore. By the same token, it is impossible to use a pricing metric (PE or EV to EBITDA), without a sense of the cross sectional distribution of that metric at the time.
Expert insights. Personalized for you.
130 
Let's personalize your content