Musings on Markets

AUGUST 19, 2024

Not surprisingly, the operating metrics change as companies age, with high revenue growth accompanied by big losses (from work-in-progress business models) and large reinvestment needs (to delivery future growth) in early-stage companies to large profits and free cash flows in the mature phase to stresses on growth and margins in decline.

Corporate Finance 98

Corporate Finance Valuation Investments Finance 98

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. That is why the risk-free rate becomes an input into option pricing and forward pricing models , and its absence leaves a vacuum.

Investments 83

Investments Currencies Treasury Hurdle Rate 83

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