tag:blogger.com,1999:blog-8152901575140311047.post3716820562894794646..comments2024-03-29T02:52:00.870-04:00Comments on Musings on Markets: Corporate finance in illiquid marketsAswath Damodaranhttp://www.blogger.com/profile/12021594649672906878noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-8152901575140311047.post-87947781055292093852012-11-22T10:26:09.379-05:002012-11-22T10:26:09.379-05:00Thank you for sharing excellent information. Your ...Thank you for sharing excellent information. Your website is so cool. I am impressed by the details that you’ve on this web site. It reveals how nicely you understand this subject. Bookmarked this web page, will come back for extra articles. You, my pal, ROCK! I found just the info I already searched everywhere and just could not come across. What a perfect web site.<br />By,<br /><a href="http://ammumarket.net" rel="nofollow">buy youtube likes</a><br /><br />ammumarket.nethttps://www.blogger.com/profile/10726533213807925515noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-40174340551893111232011-01-03T07:52:19.155-05:002011-01-03T07:52:19.155-05:00Dear AD,
What about the relation between the size ...Dear AD,<br />What about the relation between the size of an asset and its liquidity? Many illiquidity characteristics are associated with small size (cost of leverage, access to capital markets, ability to pay dividends, etc). While applying a discount to the level of illiquidity of an asset don’t we risk a double counting for the “lack of size”?Unknownhttps://www.blogger.com/profile/15863736922545399832noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-9938370076511212492011-01-02T09:21:02.255-05:002011-01-02T09:21:02.255-05:00Dear Prof,
Assume that the company is low capital...Dear Prof,<br /><br />Assume that the company is low capital intensive, which the depreciation is not so high and not distort the comparables of firm in the same industry, can i still use P/E instead of enterprise value multiple? Coz i think that they do not differ much in valuation results.Johnnyhttps://www.blogger.com/profile/11157017018424068832noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-45923425566391028352010-12-30T09:49:14.539-05:002010-12-30T09:49:14.539-05:00In all acquisitions including LBOs, you are buying...In all acquisitions including LBOs, you are buying the stock to control the business. Hence, you should be using enterprise value multiples.Aswath Damodaranhttps://www.blogger.com/profile/12021594649672906878noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-21696198798299366992010-12-29T10:15:14.540-05:002010-12-29T10:15:14.540-05:00Out of topic:-
Dear Prof,
I just read your resea...Out of topic:-<br /><br />Dear Prof,<br /><br />I just read your research paper on relative valuation, you've mentioned that "When buying a stock, it is common to look at the price paid as a multiple of<br />the earnings per share generated by the company. When buying a business, as opposed to just the equity in the business, it is common to examine<br />the value of the firm as a multiple of the operating income or the EBITDA" <br />What is the difference when we use EV/EBITDA as opposed to P/E when acquiring a stock?<br /><br />One more question, in private equity, they always claimed that they look into a business not a stock, except for LBO, they just invest (in common) only for minority stake, does it account for buying a stock or buying a business?Johnnyhttps://www.blogger.com/profile/11157017018424068832noreply@blogger.com