Musings on Markets

AUGUST 19, 2024

In fact, the business life cycle has become an integral part of the corporate finance, valuation and investing classes that I teach, and in many of the posts that I have written on this blog. In 2022, I decided that I had hit critical mass, in terms of corporate life cycle content, and that the material could be organized as a book.

Corporate Finance 121

Corporate Finance Valuation Investments Finance 121

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

FEBRUARY 12, 2025

In this post, I will focus on how companies around the world, and in different sectors, performed on their end game of delivering profits, by first focusing on profitability differences across businesses, then converting profitability into returns, and comparing these returns to the hurdle rates that I talked about in my last data update post.

Hurdle Rate 72

Hurdle Rate Accounting Investments Economics 72

Musings on Markets

JANUARY 5, 2024

In January 1993, I was valuing a retail company, and I found myself wondering what a reasonable margin was for a firm operating in the retail business. 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 105

Valuation Financial Analysis Analyzing Data Profit and Loss 105

CFO News Room

JANUARY 18, 2023

Even though we live in an age where user platforms and hyper revenue growth can drive company valuations, that adage remains true. If anything, as rates have decreased over the last decade, and costs of capital for companies hit historic lows, companies are finding it more difficult to earn returns that exceed their costs of capital. .

Marketing 130

Marketing Hurdle Rate Investments Accounting 130

Musings on Markets

FEBRUARY 27, 2022

Even though we live in an age where user platforms and hyper revenue growth can drive company valuations, that adage remains true. I will use this data to draw three broad conclusions: Low Hurdle Rate ? The proverbial bottom line for success in business is the capacity to deliver profits, at least in the long term.

Hurdle Rate 99

Hurdle Rate Investments Accounting Entertainment 99

Musings on Markets

JULY 24, 2024

Thus, if a country derives 50% of its economic output from iron ore, a drop in the price of iron ore will cause pain not only for mining companies but also for retailers, restaurants and consumer product companies in the country.

Hurdle Rate 75

Hurdle Rate Currencies Valuation Economics 75