Top Blogs in Finance

1 - Does lower interest rates Really imply higher valuation Multiples? Key Excerpts " Some say it’s because stocks are simply the present value of their future cash flows. And lower interest rates (r) in the denominator of that equation should result in a higher present value" " Others argue that when bond yields are lower, earnings yields (Earnings/Price) should be lower as well. That’s because investors are said to be choosing between stocks and bonds (they are “competing”

1 - Valuing Holding Companies - 2 Point 2 Capital Key Excerpts "  Holding Companies (Hold Cos) that hold shares of other listed and unlisted companies. A large part of the value of these Hold Cos stems from their stakes in other businesses." " Hold Cos trade at a discount to the underlying Net Asset Value (NAV)" "HoldCos in India are unique because the HoldCo discount is sometimes exceptionally high, ranging from 50-80%" Factors Affecting Holding Company Discount   " Poor Cap

Blog: 1 Only 2 things matter Key Excerpts. Emphasis Ours In this 2-year ongoing pandemic, apart from boom in the stock markets, there has been a big boom in Fintwit (financial market experts – ‘wizards’ they call themselves – on twitter – fondly called fintwit) where everybody and nobody have claimed massive gains given their ‘unique thought process’, ‘clear vision’, ‘in-depth insight into business dynamics’, ‘amazing chart reading ability’. First thing you need to do, as a ‘