Remove Hurdle Rate Remove Leverage Remove Sales
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Data Update 4 for 2021: The Hurdle Rate Question!

Musings on Markets

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?

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The Corporate Life Cycle: Corporate Finance, Valuation and Investing Implications!

Musings on Markets

If you are concerned that you are going to be hit with a sales pitch for that book, far from it! With more mature companies, as investment opportunities become scarcer, at least relative to available capital, the focus not surprisingly shifts to financing mix, with a lower hurdle rate being the pay off.

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Musings on Markets: Data Update 1 for 2023: Setting the table!

CFO News Room

When valuing or analyzing a company, I find myself looking for and using macro data (risk premiums, default spreads, tax rates) and industry-level data on profitability, risk and leverage. The table below shows a subset of the data items that I have on my website, with the links to the US versions of the data sets, in html.

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Data Update 1 for 2023: Setting the table!

Musings on Markets

When valuing or analyzing a company, I find myself looking for and using macro data (risk premiums, default spreads, tax rates) and industry-level data on profitability, risk and leverage. EV/Sales and Price/Sales 5. Per-employee Statistics Profitability Financial Leverage Reinvestment 1. Cost of Capital 3.

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Restructuring Compensation And Roles To Align For Growth

CFO News Room

You do the math and you’re like, “Okay, well, an advisor can handle about 100 clients, an associate advisor can help with some of those clients, you can leverage maybe an associate advisor with a couple of advisors, but there’s a capacity limit for each of the roles.” And then we have the 0% cap. Cean: Yep, yep.