CFO News Room

DECEMBER 5, 2022

As a result, the ‘traditional’ valuation of an advisory firm wasn’t really 2X revenue; it was 6-8X profits, and when advisory firms can run 25% to 30% profit margins, 7X profits at 28% margins came out to almost exactly 2X revenue. (In When it comes to technology firms, revenue valuation multiples are often much higher.

Planning 130

Planning Technology Valuation Communication 130

PYMNTS

SEPTEMBER 14, 2016

perhaps not surprisingly, given the two transactions just mentioned — represented the bulk of concentration, to the tune of 86 percent of all investment activity. The Department of Justice recently set up a team to investigate cybersecurity and what it considers to be a threat to national security stemming from driverless cars.

Investments 74

Investments Concentration Valuation Technology 74

Musings on Markets

AUGUST 15, 2023

After the rating downgrade, my mailbox was inundated with questions of what this action meant for investing, in general, and for corporate finance and valuation practice, in particular, and this post is my attempt to answer them all with one post. For an investment to be risk free then, it has to meet two conditions.

Investments 98

Investments Currencies Treasury Hurdle Rate 98

Barry Ritholtz

SEPTEMBER 3, 2024

I think actually if you go public, there tends to be a more of a concentration in owners holding founder 00:17:41 [Speaker Changed] Stock. But there’s always gotta be some element of the valuation really being compelling. But maybe second to valuation as a primary consideration. It’s about 80%.

Investments 59

Investments Valuation Concentration Marketing 59

Musings on Markets

DECEMBER 2, 2020

Setting the Table As with any valuation, the first step in valuing Airbnb is trying to understand its history and its business model, including how it has navigated the economic consequences of the COVID. The Valuation To value Airbnb, I will follow a familiar script, at least for me.

Profit and Loss 52

Profit and Loss Valuation Numbers Marketing 52

PYMNTS

AUGUST 13, 2018

This ignores the fact that the processing rails for this system — bitcoin — is concentrated in a handful of miners in China and the exchanges used to turn bitcoin into the real money that people can spend are routinely hacked. To think that it is or could be bitcoin is pretty upside down. Scooters as Billion-Dollar Babies. billion.

Banking 44

Banking Transportation Investments Accounting 44

Barry Ritholtz

DECEMBER 6, 2022

And we were very lucky because we were able to secure this ticker, RATE, which is definitely a very young product. And we’re having very good conversations with clients that I think, at current valuation levels, they remain, you know, very interested in the market and they see some opportunities. RITHOLTZ: Yeah.

Investments 65

Investments Marketing Numbers Risk Management 65

Barry Ritholtz

AUGUST 15, 2023

SEIDES: No, you’re right about the securities. SEIDES: It wasn’t a question of security prices going down, it’s a question of like, can you transact? It’s much more about security selection and a relatively static portfolio construction. What’s the valuation? So the credit markets froze.

Investments 52

Investments Benchmarking Marketing Treasury 52

CFO News Room

JANUARY 17, 2023

Consequently, I will concentrate this post on how this crisis is playing out in markets, and the effects it has had, so far, on businesses and investments, and whether these effects are likely to be transient or permanent. I revisited my valuation of the index, with the updated values: Spreadsheet to value the S&P 500.

Economics 130

Economics Valuation Treasury Forecasting 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. It’s, it’s double concentrated risk. 00:18:19 [Speaker Changed] Right?

Concentration 69

Concentration Valuation Marketing Investments 69

CFO News Room

NOVEMBER 5, 2022

Pundits continue to expect “SECURE 2.0” While private valuations have soared in recent years, public markets continue to be less kind to RIAs. Swimming against the tide of I Bond popularity, Arends currently prefers investing in Treasury Inflation Protected Securities (TIPS) to I Bonds. Enjoy the ‘light’ reading! Team Kitces.

Mergers and Acquisitions (M&A) 130

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

Musings on Markets

MARCH 19, 2022

Consequently, I will concentrate this post on how this crisis is playing out in markets, and the effects it has had, so far, on businesses and investments, and whether these effects are likely to be transient or permanent.

Economics 100

Economics Valuation Treasury Forecasting 100

Barry Ritholtz

SEPTEMBER 10, 2024

He has a very interesting approach to thinking about market valuations and strategies and when to deploy capital, when to go with the crowd, when to lean against the crowd, and has amassed and excellent track record. Second part of our framework is valuation fundamental work. Well, that means valuations are probably too high.

Valuation 65

Valuation Investments Economics Marketing 65

Barry Ritholtz

OCTOBER 24, 2022

And, you know, it really struck home with me that money is very personal, that it’s closely tied to security. It’s not just their security. NORTON: So what we do is we have the individual security portfolios. And how do we think about them from a valuation perspective? Please, just go to cash. NORTON: Yeah.

Investments 52

Investments Valuation Benchmarking Marketing 52

CFO News Room

NOVEMBER 8, 2022

So, last year, valuations were high, interest rates were low. And I said, “Look, you’ve got to look at where we are with valuations, and you have to look at where the 10-year Treasury is at. gains tax rate where some of these clients are retiring early before they turn pension and Social Security on. Is it at 1.5%?

Restructuring 130

Restructuring Planning Marketing Accounting 130

Barry Ritholtz

DECEMBER 12, 2023

Low price stock has historically had some very large concentrated positions. And those concentrated positions happen because they have high conviction that they’re in that group where it’s not stupid to think about where earnings will be 10 years out. This is what’s wrong with concentrating in the wrong stocks.

Benchmarking 106

Benchmarking Concentration Investments Profit and Loss 106

Barry Ritholtz

APRIL 11, 2023

 The transcript from this week’s, MiB: Aswath Damodaran: Valuations, Narratives & Academia , is below. You’re known as the dean of valuation. He said, oh, dean of valuation, it’s easier to say. So let’s start with the question, what led you to focus on valuation? RITHOLTZ: Right. And I said, why?

Valuation 119

Valuation Education Numbers Finance 119

Musings on Markets

FEBRUARY 4, 2023

Stock as collateral for debt : The motive for the stock price manipulation, at least according to Hindenburg, is that some of the debt in the Adani companies has been backed up or secured by shares in the company, with a higher market capitalization then allowing these companies to borrow more than they should.

Investments 100

Investments Valuation Auditing Restructuring 100

CFO News Room

FEBRUARY 5, 2023

Stock as collateral for debt : The motive for the stock price manipulation, at least according to Hindenburg, is that some of the debt in the Adani companies has been backed up or secured by shares in the company, with a higher market capitalization then allowing these companies to borrow more than they should.

Marketing 130

Marketing Investments Auditing Profit and Loss 130

Musings on Markets

MARCH 15, 2025

On the other, though, disrupting the US government is not the same as disrupting a business, since there are millions of vulnerable people (social security, Medicare and veteran care) whose lives rest on government checks, and a break in that process that is not fixed quickly could be catastrophic.

Investments 130

Investments Profit and Loss Valuation Economics 130

Barry Ritholtz

DECEMBER 17, 2024

Doesn’t it deserve a, a richer valuation? And then let’s say the software industry, there’s security and applications, infrastructure, et cetera. One is just generally on the valuation question with technology and similarly, the market concentration of the magnificent seven. I 100% agree.

Technology 52

Technology Investments Numbers Concentration 52

Barry Ritholtz

NOVEMBER 4, 2024

But I think the reality is right now, we just have an overhang from, I certainly in my world, I can speak to healthcare and FinTech, a number of companies going public and then disappointing or valuation just being excessive compared to the maturity of the businesses. Like it, nothing really felt secure. Like, what’s a fax?

Healthcare 52

Healthcare Investments Numbers Marketing 52

CFO News Room

DECEMBER 12, 2022

December 5: • California data point (1): 1/ SARS-CoV-2 concentrations are skyrocketing in wastewater across California. It’s counterintuitive, but when valuations are high, it is the worst time to retire,’ said Morningstar personal finance director Christine Benz.” • What an insane system. Stay safe when travelling.

Concentration 130

Concentration Accounting Numbers Healthcare 130

Barry Ritholtz

FEBRUARY 20, 2024

So the sort of the tail was wagging the dog for SOFR, the secured overnight funding rate for repo. The US has been the indispensable nation supporting and defending democracy, security arrangements and economic arrangements. He said, oh, it’d take at least two or three weeks, really? You have a big repo market.

Treasury 59

Treasury Marketing Banking Economics 59