Musings on Markets

AUGUST 15, 2023

As the risk-free rate rises, expected returns on equities will be pushed up, and holding all else constant, stock prices will go down., and the reverse will occur, when risk-free rates drop.

Investments 98

Investments Currencies Treasury Hurdle Rate 98

Musings on Markets

AUGUST 19, 2024

With more mature companies, as investment opportunities become scarcer, at least relative to available capital, the focus not surprisingly shifts to financing mix, with a lower hurdle rate being the pay off.

Corporate Finance 121

Corporate Finance Valuation Investments Finance 121

Musings on Markets

JANUARY 12, 2021

Discount rates in intrinsic valaution have to change to reflect current market conditions, and can be expected to change over time. Investment strategies that create concentrations in manufacturing and captial intensive companies need to be balanced with firms that have more flexible cost structures.

Valuation 52

Valuation Corporate Finance Finance Investments 52

Musings on Markets

JANUARY 9, 2021

While the universe of companies is diverse, with approximately half of all firms from emerging markets, it is more concentrated in market capitalization, with the US accounting for 40% of global market capitalization at the start of the year. Data Update 4 for 2021: The Hurdle Rate Question.

Valuation 52

Valuation Currencies Numbers Corporate Finance 52

Musings on Markets

JANUARY 28, 2024

In particular, there are wide variations in how risk is measured, and once measured, across companies and countries, and those variations can lead to differences in expected returns and hurdle rates, central to both corporate finance and investing judgments. What's coming?

Hurdle Rate 121

Hurdle Rate Concentration Investments Finance 121

CFO News Room

NOVEMBER 8, 2022

” look at the Monte Carlo simulations, look at what is the hurdle rate. But really the main driver in that first meeting is, “Hey, we’ve got to update the financial plan. Did things change significantly since we updated the plan?,” Cean: Correct. And so, this went on for probably two years.

Restructuring 130

Restructuring Planning Marketing Accounting 130

Barry Ritholtz

DECEMBER 26, 2023

So it’s gonna take a little more confidence, you know, and equities to, because you get your, your hurdle rates higher, you know? So one would argue that having a greater concentration, you know, not, not to the extent, I mean, I, you know, mag, maybe it’s magnificent 50, maybe it’s magnificent 100 going forward.

Marketing 64

Marketing Leadership Finance Investments 64