Download or read book Implied Terminal Values in Equity Valuation written by Wan-Ying Lin and published by . This book was released on 1999 with total page 474 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Equity Valuation Employing the Ideal Versus Ad Hoc Terminal Value Expressions written by Lucie Courteau and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Recently, Penman and Sougiannis (1998) and Francis, Olsson and Oswald (1999) compared the bias and accuracy of the dividend discount model (DDM), discounted cash flow model (DCF), and Edwards-Bell-Ohlson residual income model (RIM) in explaining the relation between value estimates and observed stock prices. Both studies report that, with non price-based terminal values, RIM outperforms DCF and DDM. Our primary research objective is to explore whether, over a five-year valuation horizon, DDM, DCF and RIM are empirically equivalent when Penman's (1998) theoretically "ideal" terminal value expressions are employed in each model. Using Value Line terminal stock price forecasts at the horizon to proxy for such values, we find empirical support for the prediction of equivalence between these three price-based valuation models. Our secondary research objective is to demonstrate that, within each class of the DCF and RIM valuation models, the model that employs Value Line forecasted price in the terminal value expression will generate the lowest pricing errors, compared to models that employ non price-based terminal value under an arbitrary growth assumption. Results indicate that, for both DCF and RIM, price-based valuation models outperform the corresponding non price-based models by a wide margin. We also revisit the issue of the apparent superiority of RIM, and find that this result does not hold in a level playing field where an approximation of ideal terminal values is employed. In fact, the price-based RIM model is marginally outperformed by the price-based DCF and DDM models, in terms of pricing errors as well as its ability to explain current market price.

Download or read book From Innovation to Cash Flows written by Constance Lütolf-Carroll and published by John Wiley & Sons. This book was released on 2009-07-01 with total page 943 pages. Available in PDF, EPUB and Kindle. Book excerpt: Praise for From Innovation to Cash Flows "Critically important topics for all entrepreneurs, new and experienced. Collaboration, intellectual property, and funding are described with depth and thoughtfulness. From Innovation to Cash Flows provides both the theoretical structure and the rich examples to serve as a great reference. Not to be missed!" —Cheryl A. Fragiadakis, Head of Technology Transfer and Intellectual Property Management, Lawrence Berkeley National Laboratory "From Innovation to Cash Flows is a unique book that covers many of the essentials to be successful as a biotechnology or high-tech entrepreneur. The combination of theory and practical examples adds direct business value. This comprehensive work will prevent any starting venture from making costly mistakes." —Jeroen Nieuwenhuis, PhD, MBA, Corporate Entrepreneur, Magnotech Venture, Philips Healthcare Incubator "Truly exhaustive in its coverage of all the different aspects of managing high-technology innovations, this book constitutes an invaluable resource for technology entrepreneurs." —Juhana Rauramo, Partner, Bio Fund Management Ltd. "From Innovation to Cash Flows is a wellspring of insights and inspiration for anyone with a desire to start up a high-tech venture. The reader is guided step by step through the twists and turns of strategy, contract law, intellectual property rights management, and strategic partnering. A global team of experts from law, science, and business collaborated to write this book; their pooled know-how and collective experiences shine through. The result is highly recommended. Every aspiring entrepreneur with a scientific bent will want to own this book for his or her own library." —Laura Cha, Deputy Chairman, The Hongkong and Shanghai Banking Corporation Ltd. "Alliances often are a vital component of successful high-tech ventures. Through its unique blend of sound management theory and wise business and legal advice, this book shows high-tech entrepreneurs how to build innovative business models based on strategic collaboration with other firms." —Xavier Mendoza, Deputy Director General, ESADE, Ramon Llull University, and former Dean, ESADE Business School, Spain "This book is distinctive because it tells you how to turn your idea into a profitable business—a combination of savvy business advice and extensive legal documents that is original. This is a book to be read, and then revisited. You will want to come back to it time and again for references, for sample documents, and for sage advice on how to take the next step." —From the Foreword by Henry Chesbrough, Adjunct Professor and Executive Director, Center for Open Innovation, Haas School of Business, UC Berkeley, and Karl S. Pister, Dean and Roy W. Carlson Professor of Engineering Emeritus, UC Berkeley

Download or read book Implied Terminal Values in Equity written by wan-ying lin and published by . This book was released on with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Damodaran on Valuation written by Aswath Damodaran and published by John Wiley & Sons. This book was released on 2016-02-08 with total page 698 pages. Available in PDF, EPUB and Kindle. Book excerpt: "Aswath Damodaran is simply the best valuation teacher around. If you are interested in the theory or practice of valuation, you should have Damodaran on Valuation on your bookshelf. You can bet that I do." -- Michael J. Mauboussin, Chief Investment Strategist, Legg Mason Capital Management and author of More Than You Know: Finding Financial Wisdom in Unconventional Places In order to be a successful CEO, corporate strategist, or analyst, understanding the valuation process is a necessity. The second edition of Damodaran on Valuation stands out as the most reliable book for answering many of today?s critical valuation questions. Completely revised and updated, this edition is the ideal book on valuation for CEOs and corporate strategists. You'll gain an understanding of the vitality of today?s valuation models and develop the acumen needed for the most complex and subtle valuation scenarios you will face.

Download or read book Analysis of Terminal Value and Beta Factor in the Discounted Cash Flow Method written by Marie Happe and published by GRIN Verlag. This book was released on 2020-11-11 with total page 128 pages. Available in PDF, EPUB and Kindle. Book excerpt: Master's Thesis from the year 2020 in the subject Business economics - Investment and Finance, grade: 1,0, University of Pavia, language: English, abstract: Company valuation is requisite to identify the deviation of the intrinsic value of an asset from its market price. The Discounted Cash Flow method is a frequently used method to determine intrinsic value. It determines the intrinsic value based on the discounted future cash flow of the asset and works in two stages. The first stage refers to an explicit forecast of the cash flow followed by the second stage which captures the cash flow beyond the forecast period with a terminal value. The cash flow is usually discounted at the Weighted Average Cost of Capital which consists of the cost of debt and cost of equity. The latter is mainly determined by the systematic risk, measured with a beta factor. The aim of the present thesis is to analyze beta factor and terminal value as the key input factors of the Discounted Cash Flow model. A comprehensive overview of the different estimation methods of beta factor and terminal value will be provided and critically reviewed. To illustrate the valuation procedure and to analyze the impact of both parameters on the intrinsic value, a case study of Microsoft Corporation is conducted. The findings of the literature and the case study demonstrate that the main challenge of the Discounted Cash Flow model is the determination of terminal value and beta factor since both parameters can be estimated with different methods that lead to different results. Moreover, the case study provides evidence that the intrinsic value is sensitive to the input factors of terminal value and to the discount rate which is primarily determined by the beta factor. The results indicate that analysts who apply the Discounted Cash Flow model should be aware that this model is mainly based on assumptions and therefore can lead to different results. The dependence of intrinsic value on the terminal value and the beta factor stresses the importance of a critical examination of these both parameters and requires a need for further investigation.

Download or read book The Investment Banker s Handbook Accounting Valuation and Modelling written by and published by ILX Group plc. This book was released on with total page 361 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Investment Banking written by Joshua Rosenbaum and published by John Wiley & Sons. This book was released on 2013-05-24 with total page 449 pages. Available in PDF, EPUB and Kindle. Book excerpt: The No. 1 guide to investment banking and valuation methods, including online tools In the constantly evolving world of finance, a solid technical foundation is an essential tool for success. Until the welcomed arrival of authors Josh Rosenbaum and Josh Pearl, no one had taken the time to properly codify the lifeblood of the corporate financier's work-namely, valuation, through all of the essential lenses of an investment banker. With the release of Investment Banking, Second Edition: Valuation, Leveraged Buyouts, and Mergers & Acquisitions, Rosenbaum and Pearl once again have written the definitive book that they wish had existed when they were trying to break into Wall Street. The Second Edition includes both the technical valuation fundamentals as well as practical judgment skills and perspective to help guide the science. This book focuses on the primary valuation methodologies currently used on Wall Street: comparable companies analysis, precedent transactions analysis, discounted cash flow analysis, and leveraged buyout analysis. With the new fully revised edition, they have added the most comprehensive, rigorous set of intuition-building and problem-solving ancillaries anywhere all of which promised to become essential, knowledge enhancing tools for professionals, and professors and students. For those who purchase this edition of the book, there are options to purchase the Valuation Models separately (9781118586167), and to also consider purchase of the Investing Banking Workbook (9781118456118) and Investment Banking Focus Notes (9781118586082) for further self-study.

Download or read book Integrated Bank Analysis and Valuation written by S. Chen and published by Springer. This book was released on 2013-11-21 with total page 191 pages. Available in PDF, EPUB and Kindle. Book excerpt: Leading analyst Sandy Chen provides a thorough guide to the analysis and valuation of banks. Unlike other businesses and institutions, banks have a number of unique characteristics that need to be taken into account when performing a valuation and as such traditional valuation methodologies are unsuitable and more specialized techniques required.

Download or read book Valuation Techniques written by David T. Larrabee and published by John Wiley & Sons. This book was released on 2012-10-09 with total page 628 pages. Available in PDF, EPUB and Kindle. Book excerpt: Analysis and insights from top thought leaders on a pivotal topic in investing and asset management Valuation is the cornerstone for investment analysis, and a thorough understanding and correct application of valuation methodologies are critical for long-term investing success. Edited by two leading valuation experts from CFA Institute, this book brings together the insights and expertise of some of the most astute and successful investment minds of the past 50 years. From Benjamin Graham, the “father of value investing,” to Aswath Damodaran, you’ll learn what these investment luminaries have to say about investment valuation techniques, including earnings and cash flow analysis. Features the best thinking on valuation from the industry’s masters on the topic, supplemented with dozens of fascinating and instructive real-world examples Comprehensively discusses special valuation situations, such as real options, employee stock options, highly leveraged firms, corporate takeovers, and more Supplies you with the tools you need to successfully navigate and thrive in the ever-changing financial markets Is being produced with the full support and input of CFA Institute, the world’s leading association of investment professionals

Download or read book Equity Asset Valuation Workbook written by Jerald E. Pinto and published by John Wiley & Sons. This book was released on 2010-01-12 with total page 134 pages. Available in PDF, EPUB and Kindle. Book excerpt: A companion workbook for the Second Edition of Equity Asset Valuation In the Second Edition of Equity Asset Valuation, experts Jerald Pinto, Elaine Henry, Thomas Robinson, and John Stowe, fully detail the contemporary techniques used to determine the intrinsic value of an equity security, and show you how to successfully apply these techniques in both foreign and domestic markets. In the Second Edition of the Equity Asset Valuation Workbook, they offer you a wealth of practical information and exercises that will further enhance your understanding of this discipline. This detailed study guide-which parallels the Second Edition of Equity Asset Valuation chapter by chapter-contains concise summary overviews of the chapters, challenging problems, and a complete set of solutions. An all-inclusive study companion to the Second Edition of Equity Asset Valuation Topics covered include the equity valuation process, discounted dividend valuation, free cash flow valuation, and residual income valuation Challenges readers with question/answer sections for each chapter in the main book Engaging and accessible, the Second Edition of the Equity Asset Valuation Workbook reviews essential concepts you must be familiar with in order to excel at this endeavor.

Download or read book Valuation Approaches and Metrics written by Aswath Damodaran and published by Now Publishers Inc. This book was released on 2005 with total page 102 pages. Available in PDF, EPUB and Kindle. Book excerpt: Valuation lies at the heart of much of what we do in finance, whether it is the study of market efficiency and questions about corporate governance or the comparison of different investment decision rules in capital budgeting. In this paper, we consider the theory and evidence on valuation approaches. We begin by surveying the literature on discounted cash flow valuation models, ranging from the first mentions of the dividend discount model to value stocks to the use of excess return models in more recent years. In the second part of the paper, we examine relative valuation models and, in particular, the use of multiples and comparables in valuation and evaluate whether relative valuation models yield more or less precise estimates of value than discounted cash flow models. In the final part of the paper, we set the stage for further research in valuation by noting the estimation challenges we face as companies globalize and become exposed to risk in multiple countries.

Download or read book A Synthesis of Equity Valuation Techniques and the Terminal Value Calculation for the Dividend Discount Model written by Stephen H. Penman and published by . This book was released on 2011 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper lays out alternative equity valuation models that involve forecasting for finite periods and shows how they are related to each other. It contrasts dividend discounting models, discounted cash flow modes, and quot;residual incomequot; models based on accrual accounting. It shows that some models that are apparently different yield the same valuation. It gives the general form of the terminal value calculation in these models and shows how this calculation serves to correct errors in the model. It also shows that all models can be interpreted as providing a particular specification of the terminal value for the dividend discount model and in so doing provides the terminal value calculation for the dividend discount formula.

Download or read book Equity Valuation and Analysis with EVal written by Russell James Lundholm and published by McGraw-Hill/Irwin. This book was released on 2007 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: While focusing on the underlying theories of financial analysis and valuation, this work aims to answer the question, "What is this company really worth?". It takes the view that sound forecasts of financial statements are the key input to a good valuation, and that other aspects of the valuation process are mechanical.

Download or read book Equity Asset Valuation written by Jerald E. Pinto and published by John Wiley & Sons. This book was released on 2015-10-16 with total page 624 pages. Available in PDF, EPUB and Kindle. Book excerpt: Navigate equity investments and asset valuation with confidence Equity Asset Valuation, Third Edition blends theory and practice to paint an accurate, informative picture of the equity asset world. The most comprehensive resource on the market, this text supplements your studies for the third step in the three-level CFA certification program by integrating both accounting and finance concepts to explore a collection of valuation models and challenge you to determine which models are most appropriate for certain companies and circumstances. Detailed learning outcome statements help you navigate your way through the content, which covers a wide range of topics, including how an analyst approaches the equity valuation process, the basic DDM, the derivation of the required rate of return within the context of Markowitz and Sharpe's modern portfolio theory, and more. Equity investments encompass the buying and holding of shares of stock in the anticipation of collecting income from dividends and capital gains. Determining which shares will be profitable is key, and an array of valuation techniques is applied on today's market to decide which stocks are ripe for investment and which are best left out of your portfolio. Access the most comprehensive equity asset valuation text on the market Leverage detailed learning outcome statements that focus your attention on key concepts, and guide you in applying the material accurately and effectively Explore a wide range of essential topics, such as the free cash flow approach, valuation using Graham and Dodd type concepts of earning power, associated market multiples, and residual income models Improve your study efforts by leveraging the text during your CFA certification program prep Equity Asset Valuation, Third Edition is a comprehensive, updated text that guides you through the information you need to know to fully understand the general analysis of equity investments.

Download or read book Business Valuation written by Z. Christopher Mercer and published by John Wiley & Sons. This book was released on 2007-09-24 with total page 291 pages. Available in PDF, EPUB and Kindle. Book excerpt: Praise for Business Valuation: An Integrated Theory, 2nd Edition "The Second Edition of Business Valuation: An Integrated Theory manages to present the theoretical analysis of valuation from the first edition and expand on that discussion by providing additional guidance on implementing the relevant valuation theories, notably in its expanded discussion of the Quantitative Marketability Discount Model." —Dr. David Tabak, NERA Economic Consulting Your Essential Valuations Reference Whether you are an accountant, auditor, financial planner, or attorney, Business Valuation: An Integrated Theory, 2nd Edition enables you to understand and correctly apply fundamental valuation concepts. Thoroughly revised and expanded, the Second Edition demystifies modern valuation theory, bringing together various valuation concepts to reveal a comprehensive picture of business valuation. With the implementation of new accounting pronouncements mandating the recognition of numerous assets and liabilities at fair value, it has become critical for CPAs charged with auditing financial statements to understand valuation concepts. With thoughtful and balanced treatment of both theory and application, this essential guide reveals: The "GRAPES of Value"-Growth, Risk and Reward, Alternative Investments, Present Value, Expectations, and Sanity The relationship between the Gordon Model and the discounted cash flow model of valuation The basis for commonly applied, but commonly misunderstood valuation premiums and discounts A practical perspective on the analysis of potential business acquisitions Grounded in the real world of market participants, Business Valuation, 2nd Edition addresses your need to understand business valuation, providing a means of articulating valuation concepts to help you negotiate value-enhancing transactions. If you want to get back to valuation basics, this useful reference will become your guide to defining the various levels of value and developing a better understanding of business appraisal reports.

Download or read book Efficiently Inefficient written by Lasse Heje Pedersen and published by Princeton University Press. This book was released on 2019-09-17 with total page 368 pages. Available in PDF, EPUB and Kindle. Book excerpt: Efficiently Inefficient describes the key trading strategies used by hedge funds and demystifies the secret world of active investing. Leading financial economist Lasse Heje Pedersen combines the latest research with real-world examples and interviews with top hedge fund managers to show how certain trading strategies make money--and why they sometimes don't. Pedersen views markets as neither perfectly efficient nor completely inefficient. Rather, they are inefficient enough that money managers can be compensated for their costs through the profits of their trading strategies and efficient enough that the profits after costs do not encourage additional active investing. Understanding how to trade in this efficiently inefficient market provides a new, engaging way to learn finance. Pedersen analyzes how the market price of stocks and bonds can differ from the model price, leading to new perspectives on the relationship between trading results and finance theory. He explores several different areas in depth--fundamental tools for investment management, equity strategies, macro strategies, and arbitrage strategies--and he looks at such diverse topics as portfolio choice, risk management, equity valuation, and yield curve logic. The book's strategies are illuminated further by interviews with leading hedge fund managers: Lee Ainslie, Cliff Asness, Jim Chanos, Ken Griffin, David Harding, John Paulson, Myron Scholes, and George Soros.