The hottest Business valuation Substack posts right now

Investment community concerned about management's strategic vision at Match
Match's revenue increased by 6% to $3.4 billion in a year
Potential for Match to return over 30% of market cap to shareholders in the next five years

Valuing a company like Aramco requires looking at both its expected cash flows and political stability. Changes in government can hugely impact its value.
Risk is an important factor in investments and can be split into 'going concern' risk, which means worrying about future cash flows, and 'truncation' risk, which means worrying about whether the company will still exist in the future.
There are pros and cons to investing in businesses within democracies versus autocracies. Democracies can lead to more stable cash flows but also introduce more frequent changes, while autocracies can appear stable but may lead to sudden and drastic changes.

Changing names can help businesses escape negative associations, like when Philip Morris became Altria to distance itself from tobacco.
Sometimes a name change reflects a shift in focus or values for a company, like when Apple dropped 'Computer' from its name as it began selling more phones and tablets.
Names matter in marketing and can influence a company's value, as shown by how stock prices react to name changes, even if the business itself doesn't change much.

Companies sometimes break up to become more focused and nimble. This is thought to help them respond faster to market changes.
Breaking up a company can make it easier to manage different parts that have different needs and growth potential. Each part can focus on what it does best.
Investors may find it easier to value smaller companies, leading to better pricing. This could happen because investors use different metrics for different types of businesses.

Pass-through entities like REITs and MLPs are popular because they avoid double taxation on income. This means the company pays taxes only at the investor level, not at the corporate level as well.
Choosing between pass-through and corporate structures affects a company's growth and investment choices. Pass-throughs often have restrictions on investments and must distribute most earnings as dividends, which can limit expansion.
When valuing businesses, it's important to consider the tax situation of the investors and the growth potential. A pass-through might not always be more valuable than a corporate structure if the tax benefits don't outweigh the growth limitations.

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Enterprise value can be negative when a company's cash surpasses the combined market values of its debt and equity. This situation could create an arbitrage opportunity for investors.
Calculating enterprise value can be tricky because it may not include all the company's debts, like lease obligations for retail firms.
The cash figures used in enterprise value calculations can be outdated, which means they might not accurately reflect the company's current cash situation.

September's inflation data showed a 0.2% rise, with the yearly change at 2.4%. This suggests some ongoing economic pressure.
Crunchbase is focusing on AI by enhancing its data tools. They introduced AI-powered search features to improve access to their extensive data.
OpenAI is projected to have significant cash losses but could still become profitable by 2029 with a strong revenue base. The risks of high spending in this sector are considerable.