CFO News Room

JANUARY 20, 2023

That expected devaluation in the high-inflation currency is not risk, though, since it can and should be incorporated into your forecasts. If a firm is badly managed, and you expect it to remain badly managed, you can and should build in that expectation into your forecasts of that company’s earnings and value.

Hurdle Rate 130

Hurdle Rate Currencies Investments Corporate Finance 130

Musings on Markets

FEBRUARY 8, 2022

That expected devaluation in the high-inflation currency is not risk, though, since it can and should be incorporated into your forecasts. If a firm is badly managed, and you expect it to remain badly managed, you can and should build in that expectation into your forecasts of that company's earnings and value.

Hurdle Rate 69

Hurdle Rate Currencies Investments Corporate Finance 69

Musings on Markets

JANUARY 20, 2021

With an index like the S&P 500, you can outsource these estimates at least for the near years, by looking at consensus forecasts from analysts tracking the index. Risk free rates over time : While it is generally not a good idea to play interest rate forecaster, we are in unusual times, with rates close to all time lows.

Treasury 52

Treasury Investments Valuation Hurdle Rate 52

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. Ultimately, a government that chooses to default is making a political choice, as much as it is an economic one.

Investments 83

Investments Currencies Treasury Hurdle Rate 83

Musings on Markets

FEBRUARY 27, 2023

Furthermore, do they optimize they debt ratios to deliver the lowest hurdle rates. In the late 1990s, it was an economic recession that was the precipitating factor, but the last three increases in delinquencies have had their origins in other forces. Do companies optimize financing mix?

Corporate Finance 52

Corporate Finance Finance Marketing Leverage 52

Musings on Markets

JANUARY 9, 2021

The second is that there are great (and free) sources for macro economic data, ranging from the Federal Reserve (FRED) to the World Bank and I don’t see the point of replicating something that they already do well. Data Update 4 for 2021: The Hurdle Rate Question. Data Update 2 for 2021: The Price of Risk!

Valuation 52

Valuation Currencies Numbers Corporate Finance 52

Barry Ritholtz

MAY 21, 2024

When all the experts and forecasts agree, something else is gonna happen. So, so given this, how do you draw a price target or a market forecast from, here’s the average of all the Wall Street strategists, let’s say it’s plus 8%. But now we’re back to a more normal hurdle rate. That’s right.

Finance 57

Finance Marketing Numbers Investments 57