hylsht
122 posts
hylsht
@5hitHoly
3D Art Made in Urban Streets. #nft #berlin #urban #art #crypto
Katılım Mart 2022
363 Takip Edilen82 Takipçiler
An entire MBA fits on one page.
But you better know the math cold.
Like & comment if you want the excel.
6 topics:
*1) Unit economics*
This builds from product-level unit economics to company financials.
Quantity per unit, growth in units.
Price per unit, growth in pricing.
Cost per unit, marketing spend per unit.
Get you return on ad spend (ROAS), customer acquisition cost (CAC), LTV/CAC, gross margins, unit contribution margins, and more.
This model sets up two diverging products:
A higher gross margin (GM), higher marking cost, low pricing power, low growth product.
Against a lower GM, better pricing power, better growing, lower unit market cost product.
To show how the dynamics of the two play out over time.
*2) Accounting*
Unit drivers flow into revenue, variable COGS, and variable SG&A.
Then to EBITDA, EBIT, EBT, Net income & EPS.
Simple cash flow statements & balance sheets reconcile D&A to inflation-adjusted replacement CapEx, debt levels, & GAAP PP&E.
You have to be fluent in accounting to look at public companies.
Not because accounting itself matters.
But because accounting can obscure what matters.
And your task it to translate GAAP into meaningful business logic.
*3) Operating ratios*
Unit drivers output financials, financials output overall business ratios.
Revenue growth, EBITDA growth, EBITDA margins.
Contribution margins (= change in profit over change in revenue).
Net debt-to-EBITDA, net debt % of EV.
*4) Valuation*
You can drive valuation on multiples or a DCF.
Which are equivalent:
The discount rate minus the growth rate determines the 'terminal multiple.'
Using a P/E instead of a DCF simply uses next year as the terminal value.
This model drives value from the DCF, and maps that to the multiples to show how they connect.
*5) Corporate finance & DCFs*
DCF math attached using the CAPM.
The summary is a beta from historical returns, add the cost of debt.
To get the WACC - the theoretically correct discount rate.
DCFs are extremely assumption laden - you can get out almost whatever you want.
But realistically.
Your banker (or analyst) will make the math work out to a 7-13% discount rate.
Depending on the risks, industry, markets - and what they want to achieve.
*6) Sensitivities & the hard part*
The last section sensitizes the equity value and multiples to unit and price growth.
Bringing unit drivers full circle to valuation outcomes.
Ultimately, the hard part isn't the math.
You have to be fluent in the math, its nuances and its limitations.
If not, you will lose out to those who are.
But once you are, you also have to shift focus.
To the hard part.
Which is always in filling in the numbers.
If you're investing, that means thoughtful views on unit drivers; on how, when, and why they shift.
And if you're building, it means making the numbers on the page happen.
That's all for now.
Like & comment if you want the excel.
English
English
Should I check the replies for interesting NFTs before I go to bed or when I wake up?
Mountain View, CA 🇺🇸 English
hylsht retweetledi
hylsht retweetledi
hylsht retweetledi
legalize ground beef. create nothing. consume everything.
die with the most likes@toadswiback
“our fast casual happiness,” is open for offers. our flesh marbles under heat lamps. waiting for a humane slaughter. and to dislodge a lifetime of regret from blocked intestines with a river of skinny girl vodka mudslides.
English
hylsht retweetledi
“our fast casual happiness,” is open for offers. our flesh marbles under heat lamps. waiting for a humane slaughter. and to dislodge a lifetime of regret from blocked intestines with a river of skinny girl vodka mudslides.
English
hylsht retweetledi
A final note....I figured out who the artist was for the @ManUtd / @TezosFoundation rip-off of @DesLucrece
I'm not going to share their identity publicly, but check out their OpenSea favorites....
case closed.
Looking forward to the resolution by @ArthurB @EdwardsMason, etc.
English
hylsht retweetledi
GM💞 soon new art in “emotions”💔 my fav collection… #nft #NFTartwork #NFTCommunity #art #sketch #artvsartist2022
English
hylsht retweetledi
#NFT #NFTCommunity #NFTs #NftColllector #opensea #nftart #Ethereum #NFTartwork
ArtisticFamily
Into the beautiful sea
Floor price: 0.0023
opensea.io/collection/int… via @opensea
English
hylsht retweetledi
GM legends 🫵
This is the last hump day of the year, enjoy it
"Art is the expression or application of 𝗵𝘂𝗺𝗮𝗻 𝗰𝗿𝗲𝗮𝘁𝗶𝘃𝗲 𝘀𝗸𝗶𝗹𝗹 𝗮𝗻𝗱 𝗶𝗺𝗮𝗴𝗶𝗻𝗮𝘁𝗶𝗼𝗻, typically in a visual form such as painting or sculpture"
𝐓𝐡𝐢𝐧𝐤😉
#nftart #NFTartwork #NFTCommunity
English