Musings on Markets

NOVEMBER 1, 2023

As the price dropped below $200 today (October 30,2023), I decided that it was time for me to revisit and revalue the company, taking into account the news, financial and other, that has come out since my last valuation in January 2023, and to understand the dueling stories that are emerging about the company.

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Valuation Profit and Loss Numbers Sales 116

Musings on Markets

SEPTEMBER 5, 2024

While it is just one quarter, there are clear signs of more slowing to come, as scaling will continue to push revenue growth down, the unit economics will be pressured as chip manufacturers (TSMC) push for a larger slice and operating margins will decrease, as competition increases.

Marketing 118

Marketing Valuation Profit and Loss Forecasting 118

PYMNTS

SEPTEMBER 20, 2019

You’d be forgiven for thinking that the WeWork IPO – rather, the shelving of that IPO , at least for now – heralds the end of rich valuations for firms viewed as entrenched in the early stages of disruption. The shelving shows that investors are increasingly worried about how at least some “new economy” firms can weather economic cycles.

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Valuation Profit and Loss Compliance Forecasting 49

PYMNTS

SEPTEMBER 20, 2020

banks aren’t fooling themselves — they’re likely in for a long stretch of low interest rates putting a burden on their profits, the Financial Times (FT) reports. That means banks’ profit margins will suffer more as low interest rates dampen yields at a time when the cost of deposit funding is already extremely low.

Profit and Loss 67

Profit and Loss Banking Valuation Forecasting 67

CFO News Room

JANUARY 17, 2023

As the world’s attention is focused on the war in the Ukraine, it is the human toll, in death and injury, that should get our immediate attention, and you may find a focus on economics and markets to be callous. Ukraine, a part of the Soviet Union, has had its shares of ups and downs, and its economic footprint is even smaller.

Economics 130

Economics Valuation Treasury Forecasting 130

Musings on Markets

JULY 22, 2021

The primary attraction of the company, to investors, comes not from its current standing (modest revenues and big losses), but from its positioning to take advantage of the potential growth in the Indian food delivery market.

Marketing 89

Marketing Valuation Profit and Loss Advertising 89

Musings on Markets

SEPTEMBER 19, 2023

In the first, I will look at the grocery business, both in terms of growth and profitability of grocery stores, since Instacart, as an intermediary in the business, will be affected by grocery business fundamentals. On the profitability front, the grocery business operates on slim margins, at every level.

Profit and Loss 104

Profit and Loss Valuation Advertising Investments 104

PYMNTS

JULY 7, 2020

Public (retail) investors have been, generally speaking, bidding up shares, seemingly shrugging off the lingering impacts of economic headwinds and the pandemic. And the series of “down rounds” seem to imply there is a growing disconnect between public and private market valuations. billion valuation.

Profit and Loss 52

Profit and Loss Valuation Startups Marketing 52

CFO News Room

DECEMBER 23, 2022

While RIA M&A activity has been red hot during the past couple of years, a survey suggests that advisors are expecting lower valuations in 2023. A review of financial planning actions, from tax-loss harvesting to charitable giving, that have a December 31 deadline. He can be reached at [email protected].

Mergers and Acquisitions (M&A) 130

Mergers and Acquisitions (M&A) Planning Valuation Securities 130

Musings on Markets

MARCH 19, 2022

As the world's attention is focused on the war in the Ukraine, it is the human toll, in death and injury, that should get our immediate attention, and you may find a focus on economics and markets to be callous. Ukraine, a part of the Soviet Union, has had its shares of ups and downs, and its economic footprint is even smaller.

Economics 100

Economics Valuation Treasury Forecasting 100

Musings on Markets

JULY 17, 2023

It is true that economic activity has leveled off and housing prices have declined a little, relative to a year ago, but given the rise in rates in 2022, those changes are mild. The biggest winner, and this should come as no surprise, has been technology, with a return of 43% in 2023, and almost entirely recovering its losses in 2022.

Marketing 96

Marketing Treasury Currencies Valuation 96

Musings on Markets

MAY 7, 2023

The Intrinsic Value of Bank Equity I am a dabbler in all things valuation-related, and I find the process fascinating, as stories about businesses get translated into valuation inputs, and finally into value. With most non-financial service businesses, you face a choice in how you approach valuation. All Equity, All the time!

Investments 64

Investments Banking Valuation Profit and Loss 64

Musings on Markets

FEBRUARY 16, 2024

In the context of valuing companies, and sharing those valuations, I do get suggestions from readers on companies that I should value next. He suggested Blue Lagoon, a well-regarded Icelandic Spa with a history of profitability, that was finding its existence under threat, as a result of volcanic activity in Southwest Iceland.

Investments 74

Investments Valuation Profit and Loss Marketing 74

PYMNTS

APRIL 16, 2020

If margins and profits are already struggling then slashing prices for an entire season’s clothes will be very painful,” said Sophie Lund-Yates, analyst at Hargreaves Lansdown. In the U.K., there are 70 percent fewer new arrivals this week compared to last year. “If

Retail 58

Retail Profit and Loss Valuation Sales 58

CFO News Room

NOVEMBER 5, 2022

In the next post, I will use Facebook’s most recent earnings surprise to talk about inconsistencies in how accountants categorize corporate spending, and why these inconsistencies can skew investors perceptions of corporate profitability and financial health. billion in the third quarter of 2022. .

Marketing 130

Marketing Advertising Profit and Loss Investments 130

Future CFO

FEBRUARY 5, 2023

While M&A value dropped dramatically in 2022, a loss of 36% in deal value, Bain’s report confirms that deal activity continues to be a central corporate strategy for growth and profitability. The largest drops came among deals for Technology and Healthcare & Life Sciences assets, the firm pointed out.

Mergers and Acquisitions (M&A) 52

Mergers and Acquisitions (M&A) Profit and Loss Healthcare Valuation 52

The Finance Weekly

OCTOBER 29, 2024

Business Valuation - Determining the value of assets or entire companies. If the income statement shows a profit, it boosts the equity on the balance sheet. A loss decreases equity. Next, use an appropriate valuation method for each division to estimate their individual worth.

Financial Modeling 52

Financial Modeling Mergers and Acquisitions (M&A) Budgeting Forecasting 52

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.

Profit and Loss 52

Profit and Loss Valuation Investments Numbers 52

Musings on Markets

OCTOBER 19, 2021

It extends into materiality, by reframing that concept in terms of value, rather than profits, and connecting it to disclosure, with disclosure requirements increasing proportionately with the value effect. Many subscription companies explicitly disclose contribution profits (e.g., StitchFix).

Profit and Loss 73

Profit and Loss Accounting Numbers IFRS 73

Musings on Markets

NOVEMBER 4, 2022

In the next post, I will use Facebook's most recent earnings surprise to talk about inconsistencies in how accountants categorize corporate spending, and why these inconsistencies can skew investors perceptions of corporate profitability and financial health. billion in the third quarter of 2022.

Advertising 100

Advertising Profit and Loss Investments Marketing 100

PYMNTS

NOVEMBER 8, 2019

The problem with large investments – the type that run into the billions of dollars – is that just as gains can be astronomical, the losses can be devastating. billion rescue, and also said it had taken its valuation of the beleaguered workspace company down by 80 percent, to around $5 billion at the end of the most recent quarter.

Profit and Loss 40

Profit and Loss Valuation Education Currencies 40

CFO Share

MAY 5, 2023

The following are some strategies that we deploy with our clients during slowed economic growth. Forget 20%+ growth targets; 1-5% growth during an economic downturn is great for most businesses – certainly better than losing money. Throw out the playbook from the boom years and adopt strategies for business growth in a recession.

Profit and Loss 40

Profit and Loss Economics CFO Valuation 40

Musings on Markets

JANUARY 29, 2021

This is a “short” sale, and if you are right and the stock price drops, you can buy the shares at the now "discounted" price, return them to the original owner and keep the difference as your profit. If you believe this valuation, you would have been a strong buyer of GameStop for much of last year, since it traded well below my $47 estimate.

Profit and Loss 52

Profit and Loss Valuation Investments Sales 52

Jedox Finance

JULY 11, 2023

This is particularly evident when considering how ESG key performance indicators (KPIs) are closely related to aspects in a profit and loss (P&L) statement and significantly impact financial outcomes. For example, incorporating renewable energy sources can influence an organization’s energy costs, affecting P&L figures.

Financial Planning and Analysis (FP&A) 52

Financial Planning and Analysis (FP&A) Finance Profit and Loss Compliance 52

Global Finance

MAY 10, 2024

“And while Chinese holdings of US Treasuries have declined notably since the pandemic, China’s holdings of agency securities and US corporate equities have picked up of late, though some of this is simply down to valuation increase.” Tariff Avoidance Might there be catalysts aside from China?

Mergers and Acquisitions (M&A) 52

Mergers and Acquisitions (M&A) Manufacturing Profit and Loss Investments 52

Cube Software

MAY 11, 2023

Pro forma income statement The income statement (also known as the profit & loss or P&L statement) mainly evaluates revenue and operating expenses, along with other metrics related to each like cost of goods sold (COGS) or net income. This is always important to do, but especially now in the midst of economic uncertainty.

GAAP 40

GAAP Financial Planning and Analysis (FP&A) Profit and Loss Accounting Principles 40

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. 00:04:02 That’s what value add software was originally. It would go up, it should go up.

Concentration 69

Concentration Valuation Marketing Investments 69

Barry Ritholtz

DECEMBER 5, 2023

So, so let’s talk a little bit about your, your background ba in economics from Dartmouth. We hope that we can invest behind and see stability so that there won’t be a loss of capital 00:28:00 [Speaker Changed] And, and above average GDP 00:28:02 [Speaker Changed] Growth. The auditors look at those valuations.

Mergers and Acquisitions (M&A) 69

Mergers and Acquisitions (M&A) Investments Valuation Numbers 69

Barry Ritholtz

JULY 24, 2023

The fact that you’ve got declining risk appetite, declines are prolonged, deep and valuations mean revert. The second, and what’s interesting about that period, is the fact that valuations actually peaked in 1961. MIAN: Valuations are ebb and flow. RITHOLTZ: So let’s take a couple of examples. Let me explain.

Marketing 52

Marketing Construction Valuation Investments 52

Barry Ritholtz

OCTOBER 17, 2023

A degree in mathematics from Oxford, a doctorate in mathematical epidemiology and economics from Cambridge. And you do a lot of work with infinity [Barry Ritholtz] : 00:03:29 [Speaker Changed] And then economics, which is a little bit squishier. What made you add economics to your, to your graduate degree? What is that?

Investments 52

Investments Valuation Numbers Math 52

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.

Investments 83

Investments Currencies Treasury Hurdle Rate 83

Musings on Markets

JANUARY 9, 2021

To illustrate, consider a practice in valuation, where analysts are trained to add a small cap premium to discount rates for smaller companies, on the intuition that they are riskier than larger companies. It is very likely that these rules of thumb were developed from data and observation, but at a different point in time.

Valuation 52

Valuation Currencies Numbers Corporate Finance 52

Barry Ritholtz

JUNE 13, 2023

And so we go back to the basics of what our job should be, risk underwriting, risk assessment, asset prices are different from asset valuation. I mean the valuation is the future cash flow discounted at a risk-free rate plus a risk premium. RITHOLTZ: So let’s talk a little bit about valuations relative to risk and reward.

Investments 59

Investments Banking Entertainment Valuation 59

Global Finance

JULY 29, 2024

Another year, another bumper crop of profits. In the first quarter of this year, the combined profits of 57 listed banks jumped 10.5% In the first quarter of this year, the combined profits of 57 listed banks jumped 10.5% surge in quarter-on-quarter profits. Quarterly performance was similarly robust, with an 11.8%

Mergers and Acquisitions (M&A) 59

Mergers and Acquisitions (M&A) Banking Profit and Loss Foreign Exchange 59

Barry Ritholtz

DECEMBER 12, 2023

They announced a $640 million loss and ouch. But if, if it has a history of not being profitable, you you really want to exclude that. The visibility on earnings they grew but they stayed profitable as, as they grew. 00:44:11 [Speaker Changed] Kathy would may have her own valuation, so, but I can’t replicate it myself.

Benchmarking 105

Benchmarking Concentration Investments Profit and Loss 105

Barry Ritholtz

AUGUST 16, 2022

And so, you know, it was relatively, I wouldn’t say straightforward because I don’t think generating consistent profits has ever been something that’s so straightforward or so easy. And it’s always going to expect to lose some of those profits when the trend reverses, but still end up capturing the meat of the trend.

Profit and Loss 122

Profit and Loss Foreign Exchange Valuation Investments 122

Barry Ritholtz

MARCH 21, 2023

ASNESS: Some of the things like betting against beta, quality or profitability, carry strategies were additions over time. ASNESS: And we had a great almost a decade, because everything else we do work, profitability one; fundamental, momentum one; low risk one. ASNESS: There are a few reasons. RITHOLTZ: Okay. RITHOLTZ: Past decade.

Profit and Loss 69

Profit and Loss Valuation Forecasting Investments 69