Global Advisors | Quantified Strategy Consulting

valuation

Term: Pre-money valuation

"Multiple expansion refers to the increase in a company’s valuation multiple at exit relative to the multiple paid at entry, holding operating performance constant." - Multiple Expansion -

Term: Multiple Expansion

"The old system is coming apart. There’s nothing to replace it. That’s where the catastrophic risk component comes in. And the market seems to essentially be blowing by, saying it doesn’t matter." - Professor Aswath Damodaran - NYU Stern School of Business

Quote: Professor Aswath Damodaran – NYU Stern School of Business

“Ultimately an investment is an instrument of trust as much as it is of belief. Every single part of your strategy is showing you're accountable and understand your responsibility with that. Take ownership.” Henry Joseph-Grant - Just-Eat founder

Quote: Henry Joseph-Grant – Just-Eat founder

“Risk management is designed expressly for decision makers—people who must decide what to do in uncertain situations where time is short and information is incomplete and who will experience real consequences from their decision.” — Dan Borge, creator of RAROC

Quote: Dan Borge – Creator of RAROC

“The purpose of risk management is to improve the future, not to explain the past.” Dan Borge Creator of RAROC

Quote: Dan Borge – Creator of RAROC

“Knowledge-building proficiency involves constructive skepticism about what we think we know. Our initial perceptions of problems and initial ideas for new products can be hindered by assumptions that are no longer valid but rarely questioned.” Bartley J. Madden Value creation leader

Quote: Bartley J. Madden – Value creation leader

“The interests and incentives of managers and shareholders conflict over such issues as the optimal size of the firm and the payment of cash to shareholders. These conflicts are especially severe in firms with large free cash flows—more cash than profitable investment opportunities.” Michael Jensen Agency Theory Co-founder

Quote: Michael Jensen – “Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers”

“Until a business returns a profit that is greater than its cost of capital, it operates at a loss.” Peter Drucker Father of modern management

Quote: Peter Drucker – Father of modern management

“The worth of a business is measured not by what has been put into it, but by what can be taken out of it.” Benjamin Graham The “father of value investing”

Quote: Benjamin Graham – The “father of value investing”

“There is a role for valuation at every stage of a firm’s life cycle.” Aswath Damodaran Professor, Valuation authority

Quote: Aswath Damodaran – Professor, Valuation authority

“One of the most powerful sources of mispricing is the tendency to over-weight or over-emphasize current conditions.” - Bill Miller - Investor, fund manager

Quote: Bill Miller – Investor, fund manager

“If investors do not know or never attempt to know the fair value, they can pay any price. More often, the price they pay is far greater than the actual value.” Naved Abdali Investor, noted commentator

Quote: Naved Abdali – Investor, noted commentator

“Finance is completely and ruthlessly forward-looking. The only source of value today is the future.” Mihir Desai Harvard Professor

Quote: Mihir Desai, Harvard Professor

Fast Fact: Some of your business segments are destroying value – which?

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