Musings on Markets

JANUARY 31, 2024

In my last three posts, I looked at the macro (equity risk premiums, default spreads, risk free rates) and micro (company risk measures) that feed into the expected returns we demand on investments, and argued that these expected returns become hurdle rates for businesses, in the form of costs of equity and capital.

Hurdle Rate 80

Hurdle Rate Profit and Loss Accounting Investments 80

CFO News Room

JANUARY 18, 2023

Real estate and utilities are the two sectors that have not come back fully from the COVID effect, but materials, technology and communication services are now reporting significantly higher earnings that before the shut down.

Marketing 130

Marketing Hurdle Rate Investments Accounting 130

Global Finance

FEBRUARY 4, 2025

Supply chain finance boosts resilience, liquidity, and ESG goals amid deglobalization and technological shifts. It requires accurate data, robust technology, and thorough risk assessment, crucial to ensuring the creditworthiness of suppliers at all levels. Santanders 50 million Brazilian real ($8.3

Finance 52

Finance Invoicing Banking Manufacturing 52

Musings on Markets

FEBRUARY 27, 2022

Real estate and utilities are the two sectors that have not come back fully from the COVID effect, but materials, technology and communication services are now reporting significantly higher earnings that before the shut down. I will use this data to draw three broad conclusions: Low Hurdle Rate ?

Hurdle Rate 98

Hurdle Rate Investments Accounting Entertainment 98

PYMNTS

FEBRUARY 16, 2017

Analysts at the consulting firm released a new report that warns traditional banks need to make more radical changes to their approaches to innovation and technology if they are to remain viable. The weakest performers fell below the returns hurdle rate across regions and across segments, the report noted.

Banking 43

Banking Hurdle Rate Benchmarking Economics 43

Musings on Markets

MARCH 5, 2025

Scaled to net income, dividend payout ratios were highest in the energy sector and technology companies had the lowest payout ratios. Data Update 4 for 2025: Interest Rates, Inflation and Central Banks! Data Update 6 for 2025: From Macro to Micro - The Hurdle Rate Question! billion) and industrial ($305.3

Corporate Finance 52

Corporate Finance Investments Finance Hurdle Rate 52

CFO News Room

JANUARY 7, 2023

In the three posts that follow, I will look at the shifts in corporate hurdle rates (in post 6), debt loads and worries (in post 7) and dividends/cash returned in post 8.

Marketing 130

Marketing Valuation Corporate Finance Financial Analysis 130

Barry Ritholtz

FEBRUARY 21, 2023

And that Gartner Hype Cycle is something where whenever there’s a disruptive technology that it comes in, there’s a lot of hype and high expectations, so unrealistic expectations, followed by something doesn’t happen, you have disillusionment. Look, for us, technology is the embodiment of our service. BUCKLEY: Yeah.

Leadership 111

Leadership Investments Profit and Loss Technology 111

Musings on Markets

FEBRUARY 15, 2023

Some of that variation can be attributed to different mixes of businesses in different regions, since unit economics will result in higher gross margins for technology companies and commodity companies, in years when commodity prices are high, and lower gross margins for heavy manufacturing and retail businesses.

Profit and Loss 52

Profit and Loss Investments Hurdle Rate Accounting 52

Musings on Markets

JANUARY 6, 2023

In the three posts that follow, I will look at the shifts in corporate hurdle rates (in post 6), debt loads and worries (in post 7) and dividends/cash returned in post 8.

Valuation 52

Valuation Corporate Finance Financial Analysis Leverage 52

Musings on Markets

JANUARY 12, 2021

The last decade, with it influx of user based companies and technology platforms forced me to think seriously about how to value a user, subscriber or rider and extrapolate from there to company value. Discount rates in intrinsic valaution have to change to reflect current market conditions, and can be expected to change over time.

Valuation 52

Valuation Corporate Finance Finance Investments 52

Musings on Markets

JANUARY 27, 2021

There are even some who believe that the block chain technology that is at the heart of bitcoin can make it a commodity, with the price rising, as block chains find their place in different parts of the economy. Data Update 4 for 2021: The Hurdle Rate Question. Here is my personal take: Bitcoin is not an asset.

Currencies 52

Currencies Investments Marketing Treasury 52

Barry Ritholtz

MAY 9, 2023

And then on the infrastructure side, I would say there’s a, you know, continual demand and need to invest in technology and operations in order to deliver a better client experience and to continue to improve and enhance our already strong risk management capabilities.

Investments 119

Investments Banking Advertising Numbers 119

Musings on Markets

FEBRUARY 27, 2023

Furthermore, do they optimize they debt ratios to deliver the lowest hurdle rates. At the other end of the spectrum, technology and energy companies look the safest on an interest coverage ratio basis, but with both groups, you worry about year-to-year volatility in earnings. at least with technology companies).

Corporate Finance 52

Corporate Finance Finance Marketing Banking 52

Musings on Markets

JANUARY 9, 2021

Thus, an analyst who follows young technology companies may decide that paying ten times revenues for a company is a bargain, if all of the companies that he tracks trade at multiples greater than ten times revenues. 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

NOVEMBER 8, 2022

Railways were this revolutionary technology that was going to change the world, going to change civilization, the speed with which people — roughly at the same time, remember Mary Meeker of Morgan Stanley — RITHOLTZ: Sure. CHANCELLOR: Exactly. But also, you could see these parallels. The government debt relative to GDP came down.

Valuation 59

Valuation Finance Investments Banking 59

CFO News Room

NOVEMBER 8, 2022

” look at the Monte Carlo simulations, look at what is the hurdle rate. ” And we just started putting in more and more technology. But really the main driver in that first meeting is, “Hey, we’ve got to update the financial plan. Did things change significantly since we updated the plan?,”

Restructuring 130

Restructuring Planning Marketing Accounting 130

Musings on Markets

JANUARY 28, 2024

In particular, there are wide variations in how risk is measured, and once measured, across companies and countries, and those variations can lead to differences in expected returns and hurdle rates, central to both corporate finance and investing judgments. What's coming?

Hurdle Rate 117

Hurdle Rate Concentration Investments Finance 117

Musings on Markets

FEBRUARY 23, 2025

The cost of debt is lower than the cost of equity : If you review my sixth data update on hurdle rates , and go through my cost of capital calculation, there is one inescapable conclusion. Breaking down the remaining sectors, real estate and utilities are the heaviest users of debt, and technology and health care the lightest.

Hurdle Rate 75

Hurdle Rate Marketing Investments IFRS 75

Barry Ritholtz

MAY 21, 2024

They were both steeped in technology. Is this the, is AI what’s driving, Hey, you gotta look past, past Nvidia and past the magnificent seven to who are gonna be the beneficiaries of all this new technology? But now we’re back to a more normal hurdle rate. 5% interest rates is not super high.

Finance 59

Finance Marketing Numbers Investments 59

Barry Ritholtz

DECEMBER 26, 2023

Technology, you know, the sector itself, the technology still has a stronger relative chart pattern. And technology and discretionary and comm services had a chance to rotate into a more bearish leadership position and did not do that. And technology. It’s been sideways, but in a stronger trend.

Marketing 64

Marketing Leadership Finance Investments 64

Barry Ritholtz

NOVEMBER 25, 2024

You learn the technology. They did poorly while the money rolled into the big cap growth and, and technology media and telecom exploded. So you’ve got, you’ve got a modeling hurdle rate that you need to figure out when you’re adding diversifiers. It’s a really broad field. The second is behavioral.

Leverage 59

Leverage Investments Marketing Math 59