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Author: Susanne Hakuba
Publisher: ibidem-Verlag / ibidem Press
ISBN: 3838256816
Category : Business & Economics
Languages : en
Pages : 121
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Book Description
In the 1990s, the global stock market experienced the birth of the new technology sector and an extraordinary increase in values. However, the surge of stock values came to an end in 2000 when stock markets dropped significantly. Especially the technology sector suffered greatly, and a high amount of wealth was erased by sharply falling markets. Could it have been possible to predict stock prices in such a market environment and, therefore, enable the equity investor to invest in undervalued stocks, if there were any? The key question for an investor in this context is whether an investment is fairly priced at the time of investment. This is of importance if one believes that stock prices can be overvalued or undervalued at times but adjust to their true values in the long-term. To form an opinion on whether an investment is fairly priced or not, i.e. overvalued or undervalued, an investor needs a valuation model. Such a model provides a theoretically correct value which can be used as a benchmark for the decision. In her study, Sussane Hakuba examines the forecasting capability of two selected valuation models for long-term equity investments over a nine-quarter time horizon (from the 4th quarter of 1999 to the 4th quarter of 2000): a) the two-stage free cash flow to equity (FCFE) model andb) the dividend discount model (DDM) as applied by JPMorgan Fleming. Susanne Hakuba looks at the application of the two equity valuation models analyzed including theory on the models, their inputs, and assumptions made. In addition, she provides discussion of the stock valuations performed and comes to conclusions and recommendations for future valuations applying the models examined.
Author: Susanne Hakuba
Publisher: ibidem-Verlag / ibidem Press
ISBN: 3838256816
Category : Business & Economics
Languages : en
Pages : 121
Get Book Here
Book Description
In the 1990s, the global stock market experienced the birth of the new technology sector and an extraordinary increase in values. However, the surge of stock values came to an end in 2000 when stock markets dropped significantly. Especially the technology sector suffered greatly, and a high amount of wealth was erased by sharply falling markets. Could it have been possible to predict stock prices in such a market environment and, therefore, enable the equity investor to invest in undervalued stocks, if there were any? The key question for an investor in this context is whether an investment is fairly priced at the time of investment. This is of importance if one believes that stock prices can be overvalued or undervalued at times but adjust to their true values in the long-term. To form an opinion on whether an investment is fairly priced or not, i.e. overvalued or undervalued, an investor needs a valuation model. Such a model provides a theoretically correct value which can be used as a benchmark for the decision. In her study, Sussane Hakuba examines the forecasting capability of two selected valuation models for long-term equity investments over a nine-quarter time horizon (from the 4th quarter of 1999 to the 4th quarter of 2000): a) the two-stage free cash flow to equity (FCFE) model andb) the dividend discount model (DDM) as applied by JPMorgan Fleming. Susanne Hakuba looks at the application of the two equity valuation models analyzed including theory on the models, their inputs, and assumptions made. In addition, she provides discussion of the stock valuations performed and comes to conclusions and recommendations for future valuations applying the models examined.
Author: Susanne Hakuba
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
Author: Aswath Damodaran
Publisher: Now Publishers Inc
ISBN: 1601980140
Category : Business & Economics
Languages : en
Pages : 102
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Book Description
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.
Author: McKinsey & Company Inc.
Publisher: John Wiley & Sons
ISBN: 0470889934
Category : Business & Economics
Languages : en
Pages : 860
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Book Description
The number one guide to corporate valuation is back and better than ever Thoroughly revised and expanded to reflect business conditions in today's volatile global economy, Valuation, Fifth Edition continues the tradition of its bestselling predecessors by providing up-to-date insights and practical advice on how to create, manage, and measure the value of an organization. Along with all new case studies that illustrate how valuation techniques and principles are applied in real-world situations, this comprehensive guide has been updated to reflect new developments in corporate finance, changes in accounting rules, and an enhanced global perspective. Valuation, Fifth Edition is filled with expert guidance that managers at all levels, investors, and students can use to enhance their understanding of this important discipline. Contains strategies for multi-business valuation and valuation for corporate restructuring, mergers, and acquisitions Addresses how you can interpret the results of a valuation in light of a company's competitive situation Also available: a book plus CD-ROM package (978-0-470-42469-8) as well as a stand-alone CD-ROM (978-0-470-42457-7) containing an interactive valuation DCF model Valuation, Fifth Edition stands alone in this field with its reputation of quality and consistency. If you want to hone your valuation skills today and improve them for years to come, look no further than this book.
Author: Benjamin Friedrich
Publisher: ibidem-Verlag / ibidem Press
ISBN: 3838255399
Category : Business & Economics
Languages : en
Pages : 138
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Book Description
The theory of capital structure is one of the most exciting and complex topics in corporate finance. After many years of debate it is still extremely difficult to provide a conclusive answer to the question which capital structure maximises the value of a company and what factors determine the optimal mix of debt and equity capital.This book provides a comprehensive introduction to capital structure theory and investigates its practical relevance in the German market. The main objectives are to explore the link between capital structure theory and corporate practice and to test determinants of capital structure choice empirically.The book has been written for students, researchers, and academics, but also for practitioners seeking empirical evidence of capital structure theory and an empirical model that can be used to estimate the optimal level of debt for an individual company in relation to an existing industry optimum.
Author: Pit Pichappan
Publisher: Springer Nature
ISBN: 3031558480
Category :
Languages : en
Pages : 370
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Book Description
Author: Goswami, Anandajit
Publisher: IGI Global
ISBN: 1522500952
Category : Business & Economics
Languages : en
Pages : 407
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Book Description
As the global economy continues to grow and change, issues concerning sustainability practices have become more prevalent. The implementation of efficient sustainability procedures offers significant assistance in the development of modern economies. Economic Modeling, Analysis, and Policy for Sustainability focuses on interdisciplinary perspectives concerning the social, environmental, and economic spheres of sustainability science. Emphasizing economic models, as well as mitigation policies and practices from various regions of the world, this book is a pivotal reference source for researchers, policy makers, government officials, and corporate leaders.
Author: John B. Guerard, Jr.
Publisher: Springer
ISBN: 3319339761
Category : Business & Economics
Languages : en
Pages : 480
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Book Description
This volume, inspired by and dedicated to the work of pioneering investment analyst, Jack Treynor, addresses the issues of portfolio risk and return and how investment portfolios are measured. In a career spanning over fifty years, the primary questions addressed by Jack Treynor were: Is there an observable risk-return trade-off? How can stock selection models be integrated with risk models to enhance client returns? Do managed portfolios earn positive, and statistically significant, excess returns and can mutual fund managers time the market? Since the publication of a pair of seminal Harvard Business Review articles in the mid-1960’s, Jack Treynor has developed thinking that has greatly influenced security selection, portfolio construction and measurement, and market efficiency. Key publications addressed such topics as the Capital Asset Pricing Model and stock selection modeling and integration with risk models. Treynor also served as editor of the Financial Analysts Journal, through which he wrote many columns across a wide spectrum of topics. This volume showcases original essays by leading researchers and practitioners exploring the topics that have interested Treynor while applying the most current methodologies. Such topics include the origins of portfolio theory, market timing, and portfolio construction in equity markets. The result not only reinforces Treynor’s lasting contributions to the field but suggests new areas for research and analysis.
Author:
Publisher:
ISBN:
Category : Water
Languages : en
Pages : 394
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Book Description
Author: Edwin J. Elton
Publisher: John Wiley & Sons
ISBN: 0470388323
Category : Business & Economics
Languages : en
Pages : 748
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Book Description
An update of a classic book in the field, Modern Portfolio Theory examines the characteristics and analysis of individual securities as well as the theory and practice of optimally combining securities into portfolios. It stresses the economic intuition behind the subject matter while presenting advanced concepts of investment analysis and portfolio management. Readers will also discover the strengths and weaknesses of modern portfolio theory as well as the latest breakthroughs.
