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Q-Cap
Mauboussin argues that typical valuation methods like P/E and EV/EBITDA are getting worst at reflecting the real economic picture of a company due to the rise of intangible assets on balance sheets.
The Microsoft example is really shocking. https://t.co/BY3AXUwfhN
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Mauboussin argues that typical valuation methods like P/E and EV/EBITDA are getting worst at reflecting the real economic picture of a company due to the rise of intangible assets on balance sheets.
The Microsoft example is really shocking. https://t.co/BY3AXUwfhN
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The Long Investor
$SPY 50 Day MA is at $510 right now so there is still more room for this relief bounce as $META, $MSFT and $GOOG report today and tomorrow.
A rejection at this level and I expect another leg down
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$SPY 50 Day MA is at $510 right now so there is still more room for this relief bounce as $META, $MSFT and $GOOG report today and tomorrow.
A rejection at this level and I expect another leg down
$SPY I have gone through every correction since 1993 and only once has the $SPY not retested the 50 Day MA from below before rejecting further down.
This happened in 2020 due Covid and the abrupt decline.
I suspect earnings will help retest the 50 Day MA but a rejection here and the correction is confirmed. tweet
X (formerly Twitter)
The Long Investor (@TheLongInvest) on X
$SPY I have gone through every correction since 1993 and only once has the $SPY not retested the 50 Day MA from below before rejecting further down.
This happened in 2020 due Covid and the abrupt decline.
I suspect earnings will help retest the 50 Day MA…
This happened in 2020 due Covid and the abrupt decline.
I suspect earnings will help retest the 50 Day MA…
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Giuliano
Astonishingly curious move.
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Astonishingly curious move.
Historic move for customers & the #construction industry: the @NemetschekGroup & @Autodesk agree on joint #interoperability announcement, including key software solutions from both companies, enabling a silo-free ecosystem & end-to-end workkflows.
More | https://t.co/EG5j1npRvN https://t.co/0F1aLwsh3P tweet
The Long Investor
$TSLA analysts targets range from
$147 to $234
Yeah, thanks for that clarity.
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$TSLA analysts targets range from
$147 to $234
Yeah, thanks for that clarity.
$TSLA: Citi Raises target price to $182 from $180
$TSLA: UBS Cuts target price to $147 from $160
$TSLA: Canaccord Genuity Cuts target price to $222 from $234
$TSLA: Truist Securities Cuts target price to $162 from $176
$TSLA: Mizuho Cuts target price to $180 from $195 tweet
X (formerly Twitter)
*Walter Bloomberg (@DeItaone) on X
$TSLA: Citi Raises target price to $182 from $180
$TSLA: UBS Cuts target price to $147 from $160
$TSLA: Canaccord Genuity Cuts target price to $222 from $234
$TSLA: Truist Securities Cuts target price to $162 from $176
$TSLA: Mizuho Cuts target price to…
$TSLA: UBS Cuts target price to $147 from $160
$TSLA: Canaccord Genuity Cuts target price to $222 from $234
$TSLA: Truist Securities Cuts target price to $162 from $176
$TSLA: Mizuho Cuts target price to…
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Daniel
Michael Mauboussin just wrote a phenomenal paper on multiples and their role in valuing companies.
The paper is 15 pages long.
Let me give you an introduction by breaking it down for you:
The paper discusses 4 topics:
1. What Multiples Miss
2. The Two Most Popular Multiples
3. Alternative Measures of Earnings
4. EV/EBITDA Deep Dive
1. What Multiples Miss
1.1 Main Problem:
Multiples tell us nothing about the returns of a company.
And if the returns are insufficient (below or at the cost of capital), growing earnings are irrelevant.
- Return above Cost of Capital -> Higher growth leads to higher value
- Return at Cost of Capital -> Higher Growth has no impact
- Return below Cost of Capital -> Higher growth leads to negative value
1.2 Shift to Intangibles
In recent decades, we've seen a shift to intangible assets.
This shift has a material impact on the significance of multiples.
In contrast to tangible assets, intangible assets are often accounted for in SG&A and R&D expenses. Thus, they reduce earnings.
The differences are significant and adjusted for this accounting difference; companies would partially report up to 50% more EBIT or EBITDA.
Because of this, multiples are getting worse at reflecting the economic picture they are supposed to capture.
2. The Two Most Popular Multiples
Price to earnings (P/E) and Enterprise Value to Earnings Before Interest, Taxes, Depreciation and Amortization (EV/EBITDA) are the most used multiples.
And while they mostly correlate, there are some factors that cause them to differentiate.
3. Alternative Measures of Earnings
Companies have to report under GAAP regulation (or IFRS for companies outside the US).
But many companies also report non-GAAP numbers. These are adjusted by:
Overall, research has shown that companies report non-GAAP earnings to give investors a more realistic picture of their operations rather than making the company look more profitable than it is.
tweet
Michael Mauboussin just wrote a phenomenal paper on multiples and their role in valuing companies.
The paper is 15 pages long.
Let me give you an introduction by breaking it down for you:
The paper discusses 4 topics:
1. What Multiples Miss
2. The Two Most Popular Multiples
3. Alternative Measures of Earnings
4. EV/EBITDA Deep Dive
1. What Multiples Miss
1.1 Main Problem:
Multiples tell us nothing about the returns of a company.
And if the returns are insufficient (below or at the cost of capital), growing earnings are irrelevant.
- Return above Cost of Capital -> Higher growth leads to higher value
- Return at Cost of Capital -> Higher Growth has no impact
- Return below Cost of Capital -> Higher growth leads to negative value
1.2 Shift to Intangibles
In recent decades, we've seen a shift to intangible assets.
This shift has a material impact on the significance of multiples.
In contrast to tangible assets, intangible assets are often accounted for in SG&A and R&D expenses. Thus, they reduce earnings.
The differences are significant and adjusted for this accounting difference; companies would partially report up to 50% more EBIT or EBITDA.
Because of this, multiples are getting worse at reflecting the economic picture they are supposed to capture.
2. The Two Most Popular Multiples
Price to earnings (P/E) and Enterprise Value to Earnings Before Interest, Taxes, Depreciation and Amortization (EV/EBITDA) are the most used multiples.
And while they mostly correlate, there are some factors that cause them to differentiate.
3. Alternative Measures of Earnings
Companies have to report under GAAP regulation (or IFRS for companies outside the US).
But many companies also report non-GAAP numbers. These are adjusted by:
Overall, research has shown that companies report non-GAAP earnings to give investors a more realistic picture of their operations rather than making the company look more profitable than it is.
tweet
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The Long Investor
China is moving away from the Dollar as a store of value.
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China is moving away from the Dollar as a store of value.
What is happening in China?
Gold trading volume in China is now 400% LARGER than the average seen in 2023.
The trading activity in gold on the Shanghai Futures Exchange spiked to 1.3 MILLION lots on the peak day of trading last week.
This came at the same time that gold prices broke above a record $2,400/oz.
Last year alone, China's central bank acquired more than 225 tonnes gold.
Since October, gold is nearly 30% posting one of its best 6-month performances in history.
Why is there so much gold buying in China? tweet
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Brandon Beylo
Say what you want about Bitcoin $BTC and its usability, viability, and value as a currency/medium of exchange.
But @jack and Square $SQ are building the most practical infrastructure available to make that happen.
Like every SQ product, I'm sure this will be beautiful.
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Say what you want about Bitcoin $BTC and its usability, viability, and value as a currency/medium of exchange.
But @jack and Square $SQ are building the most practical infrastructure available to make that happen.
Like every SQ product, I'm sure this will be beautiful.
square sellers: auto-convert a percent of your daily sales to bitcoin: https://t.co/sMiTIZV916 https://t.co/Glnt8gc2eC tweet