Quarterly Equity Valuations: January 2019

Monday, January 28th, 2019

We take a look at equity valuations and find that they have moved into even more expensive territory. We use data from the NSE website starting from when it is available in January 1999 to look at the P/E Ratio, P/B ratio and the dividend yield of the index and compare it to past history.   Price to Earnings (P/E) […]

Aswath Damodaran – Laws of Valuation

Wednesday, January 9th, 2019

Great talk by Aswath Damodaran on the corporate life cycle and how companies evolve over time. Here is the video and some key takeaways: Key Takeaways: Companies don’t like to get old: fighting it can be one of the most dangerous things a business can do Most value is destroyed by companies not acting their […]

Narrative or Earnings

Wednesday, August 15th, 2018

Josh Brown had a comment on a WSJ article which talked about how, since 2011, you could have focused either on corporate earnings growth or the negative commentary around FED tapering. If you had focused on the FED narrative, you would have missed out on the massive 161 per cent rally in the S&P 500 […]

Private vs. Public

Tuesday, August 14th, 2018

Professor Damodaran has a note on Elon Musk’s announcement of privatising Tesla. Even though the saga continues, I thought it was more interesting to focus on the Professor’s comparison of private businesses with publicly traded firms.   To summarise, we can look at the following table from his post:     Do check out this […]