Musings on Markets

FEBRUARY 10, 2021

What is a hurdle rate for a business? In this post, I will start by looking at the role that hurdle rates play in running a business, with the consequences of setting them too high or too low, and then look at the fundamentals that should cause hurdle rates to vary across companies. What is a hurdle rate?

Hurdle Rate 52

Hurdle Rate Currencies Investments Valuation 52

Musings on Markets

AUGUST 15, 2023

I was reminded of that paper a few weeks ago, when Fitch downgraded the US, from AAA to AA+, a relatively minor shift, but one with significant psychological consequences for investors in the largest economy in the world, whose currency still dominates global transactions. and the reverse will occur, when risk-free rates drop.

Investments 98

Investments Currencies Treasury Hurdle Rate 98

Musings on Markets

JANUARY 5, 2024

Employee Count & Compensation I nvesting Principle Financing Principle Dividend Principle Hurdle Rate Project Returns Financing Mix Financing Type Cash Return Dividends/Buyback s 1. Valuation Pricing Growth & Reinvestment Profitability Risk Multiple s 1. Profit Margins 1. Aggregate operating numbers 3. Be patient.

Valuation 105

Valuation Financial Analysis Analyzing Data Profit and Loss 105

Musings on Markets

JANUARY 9, 2021

That said, it does mean that any broad conclusions (about profitability and revenues) that emerge from my data apply to public companies, and it may be dangerous to extrapolate to private businesses, especially in a year like 2020 where private businesses could have been affected more adversely by COVID shutdowns than public companies.

Valuation 52

Valuation Currencies Numbers Corporate Finance 52

Barry Ritholtz

NOVEMBER 25, 2024

So you’ve got, you’ve got a modeling hurdle rate that you need to figure out when you’re adding diversifiers. Trades a similar universe of currencies and commodities and, and equities and rates around the world. I, I kind of feel a little bit of a loss that that’s gone away. Oh, thanks.

Leverage 59

Leverage Investments Marketing Math 59