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. In 2022, I decided that I had hit critical mass, in terms of corporate life cycle content, and that the material could be organized as a book.

Corporate Finance 123

Corporate Finance Valuation Investments Finance 123

Global Finance

AUGUST 16, 2024

The decision, which was intended to help Anglo focus on its restructuring, swung the company from a net profit of $1.26 billion in the first half of 2023 to a $672 million loss in the first half of this year. The company took a $1.6

Restructuring 105

Restructuring Profit and Loss Valuation Planning 105

PYMNTS

MAY 15, 2019

WeWork , which recently renamed itself The We Company, has built a multibillion-dollar valuation with its business model of renting out spaces. The launch of ARK will help drive growth by leveraging The We Company’s extensive real estate experience and network,” said Rich Gomel, managing partner of ARK.

Investments 53

Investments Profit and Loss Valuation Leverage 53

Global Finance

JULY 29, 2024

Another year, another bumper crop of profits. In the first quarter of this year, the combined profits of 57 listed banks jumped 10.5% In the first quarter of this year, the combined profits of 57 listed banks jumped 10.5% surge in quarter-on-quarter profits. Quarterly performance was similarly robust, with an 11.8%

Mergers and Acquisitions (M&A) 59

Mergers and Acquisitions (M&A) Banking Profit and Loss Foreign Exchange 59

PYMNTS

MAY 10, 2018

For its part, Flipkart walks out of the deal with a valuation north of $20 billion, a promise of $2 billion in fresh investment from Walmart and “additional potential investors,” as Walmart CFO Bret Biggs noted. It’s typical of a business like this that, as you scale up, you will have losses. What the Deal Will Mean. is known for. “As

Profit and Loss 43

Profit and Loss eCommerce Leverage Valuation 43

Barry Ritholtz

AUGUST 16, 2022

And so, you know, it was relatively, I wouldn’t say straightforward because I don’t think generating consistent profits has ever been something that’s so straightforward or so easy. And it’s always going to expect to lose some of those profits when the trend reverses, but still end up capturing the meat of the trend.

Profit and Loss 120

Profit and Loss Foreign Exchange Valuation Marketing 120

Jedox Finance

JULY 11, 2023

This is particularly evident when considering how ESG key performance indicators (KPIs) are closely related to aspects in a profit and loss (P&L) statement and significantly impact financial outcomes. For example, incorporating renewable energy sources can influence an organization’s energy costs, affecting P&L figures.

Financial Planning and Analysis (FP&A) 52

Financial Planning and Analysis (FP&A) Finance Profit and Loss Compliance 52

PYMNTS

JUNE 30, 2017

Turns out that investors get nervous when profits prove elusive. Thus, a possible tech stock market fizzle, should this indeed be a harbinger, where the $2 billion valuation is the same as implied by a Blue Apron funding round two years ago. The ascendant tech IPO that, well, snapped when it reported results?

Profit and Loss 40

Profit and Loss B2B B2C eCommerce 40

Barry Ritholtz

DECEMBER 5, 2023

But there wasn’t an active m and a business, there wasn’t a leveraged finance business. But there came to be, in certain situations, buyers that were bootstrap, buyers that were, we would call ’em today, they then leveraged buyout financiers. And, and we wanted to have relatively modest leverage.

Mergers and Acquisitions (M&A) 69

Mergers and Acquisitions (M&A) Investments Valuation Numbers 69

Musings on Markets

FEBRUARY 10, 2021

Business If you are a company with two business lines, one with predictable revenues and stable profit margins, and the other with cyclical revenues and volatile margins, you would expect to, other things remaining equal, use a lower hurdle rate for the first than the second.

Hurdle Rate 52

Hurdle Rate Currencies Investments Valuation 52

CFO News Room

DECEMBER 23, 2022

While RIA M&A activity has been red hot during the past couple of years, a survey suggests that advisors are expecting lower valuations in 2023. A review of financial planning actions, from tax-loss harvesting to charitable giving, that have a December 31 deadline. He can be reached at [email protected].

Mergers and Acquisitions (M&A) 130

Mergers and Acquisitions (M&A) Planning Valuation Securities 130

CFO News Room

NOVEMBER 5, 2022

While private valuations have soared in recent years, public markets continue to be less kind to RIAs. Outside of work, he serves as a volunteer financial planner and class instructor for non-profits in the Northern Virginia area. Enjoy the ‘light’ reading! Author: Adam Van Deusen. Team Kitces. He can be reached at [email protected].

Mergers and Acquisitions (M&A) 130

Mergers and Acquisitions (M&A) Profit and Loss Investments Securities 130

Barry Ritholtz

AUGUST 20, 2024

And so in the 1990s, I developed the, the late 1980s, early 1990s, I developed a skillset around valuation, in particular discounted cash flow or residual income type models, along with a couple of peers out of the consulting industry. That’s amazing leverage. 00:04:02 That’s what value add software was originally.

Concentration 67

Concentration Marketing Valuation Investments 67

Barry Ritholtz

JUNE 13, 2023

The exposure you get in investment banking, I was a leveraged finance banker by background. And so we go back to the basics of what our job should be, risk underwriting, risk assessment, asset prices are different from asset valuation. I mean the valuation is the future cash flow discounted at a risk-free rate plus a risk premium.

Investments 57

Investments Banking Entertainment Marketing 57

Barry Ritholtz

OCTOBER 8, 2024

And I think what I’m trying to imply is there’s a lot of informational value that’s already held within the valuations where these equities are trading that you can calculate, you know, a sense of the implied market probability of success for an opportunity for a company. There, 00:10:35 [Speaker Changed] There is.

Healthcare 57

Healthcare Investments Pharmaceutical Profit and Loss 57

Barry Ritholtz

OCTOBER 21, 2024

I had no money back in 87, but certainly, you know, some of the managing directors and other people that had some money, they, they made quite a, quite a bit of of profits on, on some of the left for dead Microsoft and others that were just, you know, sold to very low levels as 00:06:28 [Speaker Changed] Opposed.

Numbers 57

Numbers Investments Marketing Leverage 57

Barry Ritholtz

DECEMBER 14, 2022

And it became the most profitable private equity investment ever made and — it is true. And Blackstone’s funds through that period, generated substantial profits because we had made those good choices, not just about the investments — RITHOLTZ: Right. RITHOLTZ: Is that true? That’s amazing.

Mergers and Acquisitions (M&A) 62

Mergers and Acquisitions (M&A) Investments Construction Marketing 62

Barry Ritholtz

MARCH 12, 2024

And so, so we sort of felt pretty stupid for a while because we did a lot of losing trades in 2006 that were the, you know, that obviously didn’t come to fruition until the actual people could see the losses. So in mortgages, the borrower can stop paying maybe a year to two years before the lenders actually book a loss.

Profit and Loss 57

Profit and Loss Investments Marketing Securities 57

Musings on Markets

FEBRUARY 4, 2023

In fact, the infrastructure business is full of companies that borrow heavily, with little or no earnings buffer, and I am not sure that many of them will withstand the Hindenburg test for over leverage. YouTube Video Datasets Adani Enterprises- Historical Financial Data Spreadsheets Valuation of Adani Enterprises on February 4, 2023

Investments 100

Investments Valuation Auditing Restructuring 100

CFO News Room

FEBRUARY 5, 2023

In fact, the infrastructure business is full of companies that borrow heavily, with little or no earnings buffer, and I am not sure that many of them will withstand the Hindenburg test for over leverage.

Marketing 130

Marketing Investments Auditing Profit and Loss 130

PYMNTS

JUNE 6, 2016

This, of course, is Walmart’s announcement of a new partnership with Uber and Lyft to leverage those ride-sharing platforms to deliver groceries in a two-hour window to Walmart customers. For Uber and Lyft, this is pure profit to the bottom line that keeps drivers happy by giving them more work.

Retail 40

Retail Leverage Numbers Profit and Loss 40

PYMNTS

MARCH 7, 2016

Lately, though, they’re probably tossing and turning over the difficulties with raising capital coupled with the simultaneous descent of their venture’s valuations. And whether, if one and two come true, there’s a business model underneath all of it to profit from. ARE WE SOLVING THE RIGHT PROBLEMS FOR THE RIGHT PEOPLE?

Banking 46

Banking Profit and Loss Retail Manufacturing 46

Barry Ritholtz

MARCH 21, 2023

ASNESS: Some of the things like betting against beta, quality or profitability, carry strategies were additions over time. ASNESS: And we had a great almost a decade, because everything else we do work, profitability one; fundamental, momentum one; low risk one. ASNESS: There are a few reasons. RITHOLTZ: Okay. RITHOLTZ: Past decade.

Profit and Loss 67

Profit and Loss Valuation Forecasting Investments 67

Barry Ritholtz

NOVEMBER 25, 2024

00:21:21 [Speaker Changed] So this story came out that, oh, value is defensive because it has this valuation buffer to it 00:21:28 [Speaker Changed] In that one example. This is implicitly leverage. Leverage is a tool that accentuates both the good and the bad. And you need to be aware of the leverage risk that’s embedded.

Leverage 57

Leverage Investments Marketing Math 57