MoneyScience News |
- Blog Post: PatrickBurns: US market portrait 2012 week 42
- Blog Post: TheAlephBlog: Forest Fires and Central Banking
- Published / Preprint: A Message from the Editor
- Published / Preprint: Executive Summaries
- Published / Preprint: Is Economic Growth Good for Investors?1
- Published / Preprint: Blinded by Growth
- Published / Preprint: Valuation with Market Multiples: How to Avoid Pitfalls When Identifying and Using Comparable Companies1
- Published / Preprint: Excess Cash and Shareholder Payout Strategies
- Published / Preprint: Toward RealâTime Financial Reporting: How to Reduce Investors' Information Gap and the Cost of Capital
- Published / Preprint: Pitfalls in Levering and Unlevering Beta and Cost of Capital Estimates in DCF Valuations1
- Published / Preprint: An Entrepreneur's Guide to Understanding the Cost of Venture Capital
- Published / Preprint: Corporate Governance and the Cost of Capital: Evidence from Australian Companies
- Published / Preprint: Assessing Project Risk
- Published / Preprint: The Terminal Value and Inflation Controversy
- Blog Post: Falkenblog: OptionMetric User Conference Monday
| Blog Post: PatrickBurns: US market portrait 2012 week 42 Posted: 13 Oct 2012 02:37 AM PDT US large cap market returns.read more... Visit MoneyScience for the Complete Article.      |
| Blog Post: TheAlephBlog: Forest Fires and Central Banking Posted: 12 Oct 2012 10:44 PM PDT We can create a force that eliminates forest fires, but there will be a cost. A certain amount of forest fires are normal, and if we don’t have small forest fires, we will have big ones that happen infrequently, and cause a lot of damage.read more... Visit MoneyScience for the Complete Article.    |
| Published / Preprint: A Message from the Editor Posted: 12 Oct 2012 08:56 AM PDT    |
| Published / Preprint: Executive Summaries Posted: 12 Oct 2012 08:56 AM PDT    |
| Published / Preprint: Is Economic Growth Good for Investors?1 Posted: 12 Oct 2012 08:33 AM PDT When measured over long periods of time, the correlation of countries' inflationâ€adjusted per capita GDP growth and stock returns is negative. This result holds for both developed countries (for which the correlation coefficient is â€"0.39 using data from 1900â€"2011) and emerging markets (the correlation is â€"0.41 over the period 1988â€"2011). And this means that investors would have been... Visit MoneyScience for the Complete Article.    |
| Published / Preprint: Blinded by Growth Posted: 12 Oct 2012 08:33 AM PDT Everybody loves a growth story. But that does not make growth by itself a good investment thesis. Fastâ€growing countries and their companies often produce low returns for investors, and slowâ€growing ones sometimes produce high returns.read more... Visit MoneyScience for the Complete Article.    |
| Posted: 12 Oct 2012 08:33 AM PDT An important part of the market multiple valuation process is selecting companies for comparison that are really comparable to the company being valued. The goal of assessing comparability is to align the relevant value driversâ€"especially risk and growthâ€"of the comparable companies with those of the company being valued.read more... Visit MoneyScience for the Complete Article.    |
| Published / Preprint: Excess Cash and Shareholder Payout Strategies Posted: 12 Oct 2012 08:33 AM PDT On March 19, 2012, Apple announced a program to distribute its “excess†cash to shareholders in the form of dividends and share buybacks. This announcement followed a pattern that is remarkably similar to the one leading up to Microsoft's announcement in 2004. Likewise IBM, the bluest of blue chips, made a pathâ€breaking decision to initiate share buybacks in the 1980s. And as recently as... Visit MoneyScience for the Complete Article.    |
| Posted: 12 Oct 2012 08:33 AM PDT Public companies are struggling to provide detailed and accurate guidance in a turbulent world. Many have dropped guidance altogether, or substantially reduced the precision of their guidance. However, they pay a price for the resulting increase in investor uncertainty in the form of a higher cost of capital and reduced equity valuations.read more... Visit MoneyScience for the Complete Article.    |
| Posted: 12 Oct 2012 08:33 AM PDT The “levering†and “unlevering†of estimates of beta and various costs of capital are routine steps in estimating the discount rates used in DCF valuations. But as the authors demonstrate by reviewing the existing research on the subject, the levering and unlevering formulas that are most commonly used in practice are not appropriate for valuing many companies. They also illustrate the... Visit MoneyScience for the Complete Article.    |
| Published / Preprint: An Entrepreneur's Guide to Understanding the Cost of Venture Capital Posted: 12 Oct 2012 08:33 AM PDT Entrepreneurs who deal with a venture capital firm (VC) for the first time often find themselves unprepared for the experience. The deal structure language used to describe financing terms, and the methods used to value the investment, are unique to the VC world.read more... Visit MoneyScience for the Complete Article.    |
| Posted: 12 Oct 2012 08:33 AM PDT The authors examine a sample of large Australian companies over a 10â€year period with the aim of analyzing the role that firmâ€level corporate governance mechanisms such as insider ownership and independent boards play in explaining a company's cost of capital. The Australian corporate system offers a unique environment for assessing the impact of corporate governance mechanisms. Australian... Visit MoneyScience for the Complete Article.    |
| Published / Preprint: Assessing Project Risk Posted: 12 Oct 2012 08:33 AM PDT Finding the appropriate discount rate, or cost of capital, for evaluating investment projects requires an accurate estimate of project risk. This can be challenging because project risk cannot be estimated directly using the CAPM, but must instead be inferred from a set of traded securities, typically the equity betas of comparable firms in the same industry. These equity betas are then unlevered... Visit MoneyScience for the Complete Article.    |
| Published / Preprint: The Terminal Value and Inflation Controversy Posted: 12 Oct 2012 08:33 AM PDT This journal recently published what was effectively a debate between Gunther Friedl and Bernhard Schwetzler (hereafter “F&Sâ€), on the one hand, and Michael Bradley and Gregg Jarrell (“B&Jâ€). B&J initiated the first round of the debate by criticizing the constant growth valuation model, commonly known as the “Constant Growth Model†or “Gordon Growth Model.†The Gordon... Visit MoneyScience for the Complete Article.    |
| Blog Post: Falkenblog: OptionMetric User Conference Monday Posted: 12 Oct 2012 07:08 AM PDT The 2012 OptionMetrics Users Conference is Monday, October 15, at the New York Society of Securities Analysts Conference Center, Times Square, New York. I'll be speaking Monday at noon, but there are 4 different sessions each with 3 speakers discussing various strategies and tactics. See details here. Visit MoneyScience for the Complete Article.    |
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