Hurdle Rate Technology Valuation 
Musings on Markets
FEBRUARY 8, 2025
I spend most of my time in the far less rarefied air of corporate finance and valuation, where businesses try to decide what projects to invest in, and investors attempt to estimate business value. A key tool in both endeavors is a hurdle rate a rate of return that you determine as your required return for business and investment decisions.
Musings on Markets
JANUARY 10, 2025
Breaking down companies by (S&P) sector, again both in numbers and market cap, here is what I get: While industrials the most listed stocks, technology accounts for 21% of the market cap of all listed stocks, globally, making it the most valuable sector. Valuation Pricing Growth & Reinvestment Profitability Risk Multiple s 1.
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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.
CFO News Room
JANUARY 20, 2023
Risk and Hurdle Rates In investing and corporate finance, we have no choice but to come up with measures of risk, flawed though they might be, that can be converted into numbers that drive decisions. In corporate finance, this takes the form of a hurdle rate , a minimum acceptable return on an investment, for it to be funded.
Musings on Markets
FEBRUARY 8, 2022
Risk and Hurdle Rates In investing and corporate finance, we have no choice but to come up with measures of risk, flawed though they might be, that can be converted into numbers that drive decisions. In corporate finance, this takes the form of a hurdle rate , a minimum acceptable return on an investment, for it to be funded.
CFO News Room
JANUARY 7, 2023
Data: Trickle to a Flood! It is perhaps a reflection of my age that I remember when getting data to do corporate financial analysis or valuation was a chore. By the same token, it is impossible to use a pricing metric (PE or EV to EBITDA), without a sense of the cross sectional distribution of that metric at the time.
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. The largest sector, in the US, in terms of market capitalization, is information technology and I have argued that tech companies age in “dog years” , with compressed life cycles.
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