What this project is designed to do: i) Illustrate the wide variety
of valuation assumptions / approaches that can be applied depending on each individual company / situation, and ii) provide a cheatsheet to highlight the potentially best (and worst!)
Not exact matches
«I define a bubble as something where assets have prices that can not be justified with any reasonable
assumption,» says Jay Ritter, a professor
of finance at the University
of Florida's Warrington College
of Business Administration who studies
valuation and IPOs.
The
assumptions used in the
valuation of these awards are set forth in the notes to our consolidated financial statements, which are included in our Annual Report on Form 10 - K for the year ended December 31, 2017, filed with the SEC on February 23, 2018.
The problem is when investors adopt theories and models that embed the most optimistic
assumptions possible, run contrary to historical evidence, or embed subtle peculiarities that actually drive the results (see, for example, the «novel
valuation measures» section
of The Diva is Already Singing).
The plans should «make appropriate
assumptions as to the
valuations of assets and off - balance sheet positions,» the documents said.
Thanks to the power
of compounding dividends and earnings growth,
valuations of global developed stocks would need to fall by roughly 30 % over the next five years to generate negative returns for investors, our return
assumptions suggest.
Valuations that we have performed require significant use of estimates and assumptions, If different estimates and assumptions had been used, our common stock valuations could be significantly different and related stock - based compensation expense may be materially
Valuations that we have performed require significant use
of estimates and
assumptions, If different estimates and
assumptions had been used, our common stock
valuations could be significantly different and related stock - based compensation expense may be materially
valuations could be significantly different and related stock - based compensation expense may be materially impacted.
There were significant judgments and estimates inherent in these
valuations, which included
assumptions regarding our future operating performance, the time to completing an initial public offering or other liquidity event and the determinations
of the appropriate
valuation methods to be applied.
This isn't to say that stocks can't deliver adequate returns between now and some narrow set
of future dates, but to expect that stocks purchased at these levels will deliver attractive long - term returns in general requires the
assumption that current
valuations will remain elevated into the indefinite future.
-- $ 500K @ 20 % discount = $ 625K effective conversion — $ 625K / $ 100M post-money
valuation = 0.6 % ownership for initial investor [believe this is complicit w / your
assumption that the shares convert @ the time
of the investment — not included in pre-money]
The deal closed at a $ 420 million
valuation, with $ 362 million in cash and equity plus an
assumption of approximately $ 58 million in unvested stocks and options.
These
valuations might be reasonable on the
assumption that short - term interest rates will be kept at zero for more than 30 years, but our impression is that what's actually going on is that investors feel they have «nowhere else to go» and — as in 2000 and 2007 — are speculating without a clear recognition
of the dismal long - term returns that are now priced into equities.
Valuations are generally based on an idea
of expected future income, so, having our fair share
of aeronautical engineers, as well as a good American representation in the group, we have a great discussion about the
assumptions underlying the
valuation, the future
of the air travel market, and the role
of governments and other stakeholders in funding such large projects.
Actuarial Miscalculations and Demographic Changes: Pension plan
valuations depend on
assumptions about a host
of factors like how much employees will earn, how long they'll stay, how long they'll live in retirement, etc..
Thanks to the power
of compounding dividends and earnings growth,
valuations of global developed stocks would need to fall by roughly 30 % over the next five years to generate negative returns for investors, our return
assumptions suggest.
«Even the rather crude
assumption that past average earnings will be repeated in the future may be found a more reliable basis
of valuation than some other figure plucked out
of the air
of either optimism or pessimism.»
We correctly estimated at the time that the 10 - year total return
of the S&P 500 was likely to be negative even with optimistic
assumptions about the
valuations that might prevail at the end
of that 10 - year period.
While beastlike is correct about the budget being arrived at before tax rates are set, the
assumption that the dollar amount
of your taxes remains the same only applies if everyone in the county appealed their
valuation when home values in the area drop.
When you read about
valuation there is a sort
of overriding
assumption that no single person could topple the operation which couldn't be farther from the truth in single employee service companies.
However, there are few limitations
of using absolute
valuation as you will require to make few
assumptions and the results are only as good as inputs.
The Paradox
of the Zero Bound Subpar Economic Recovery Gets Premium Market
Valuation Wall Street Earnings Expectations Ignore Economic Divergences The Great Divergence An Update on International Market
Valuations Business Cycles, Election Cycles, and Potential Risks An Update on
Valuations and Forward Earnings
Assumptions Bond Yields, Earnings Yields, and Inflation A View from the NBER Recession Indicators Three Observations on Third Quarter Earnings Forward Looking Measures Still Don't Provide Evidence for a V - Shaped Recovery This Earnings Season, Watch Sales Forward Earnings Imply a Return to Near - Record Profit Margins Without Phoenix Stocks, Volume Continues to Contract Is the Job Market Ready for a Recovery?
These large bubbles and crashes in the absence
of significant changes in
valuation cast doubt on the
assumption of efficient markets that incorporate all public information accurately.
Juicy Excerpt # 1: I will take steps in my final paper to test a wide variety
of assumptions about asset allocation,
valuation - based decision rules, whether the period is 10, 20, 30, or 40 years, lump - sum vs. dollar - cost averaging, and so on, and to show that the results are quite robust to changes in any
of these
assumptions.
Generally, our research should explain why a given investment should work, the risks that might keep it from working, and define a range
of plausible scenarios that we use to formulate our
valuation assumptions.
I do happen to think the board's in the best position to properly assess LEs & policy
valuations, so I think it's pretty sensible to rely on their
assumptions & calculations as the mid-point
of range
of outcomes.
As
of year - end, over 40 %
of the portfolio's now been assessed, and results actually re-confirmed the company's latest
valuation assumptions.
Did you note that yesterday Goodbody released a research note on Donegal.Target price EUR 6.70 with VERY conservative
assumption (they used a 20 % discount on the low - end
valuation for the mushroom business, and used bear case
valuations for a lot
of other stuff).
Juicy Excerpt # 1: I will take steps in my final paper to test a wide variety
of assumptions about asset allocation,
valuation - based decision rules, whether the period is 10, 20, 30, or 40 years, lump - sum vs. dollar - cost averaging, and so on, and to show that the results are quite robust...
Sherman's exhaustive study
of portraiture and self - portraiture — often a playful mixture
of camp and horror, heightened by gritty realism — provides a new lens through which to examine societal
assumptions surrounding gender and the
valuation of concept over style.
A sensitivity analysis
of valuation to a range
of prices would be welcome — or at least, disclosure
of their long - term price
assumptions along with comparison to modelled 2 °C prices and the
valuation results.
The
assumption is that QGUP will rise in value in line with the GUP token that's currently primarily representative
of the platform's
valuation and, in turn, this
assumption is driving an increased demand among GUP traders and investors who wish to pick up an exposure in an attempt to capitalize on the 1:1 issue
of QGUP.
Real estate financial modeling (or real estate financial modelling if you spell it in that way) is the activity
of making future financial feasibility projections based off
of current
assumptions as they relate to a commercial real estate
valuation and investment analysis.