Equity Asset Valuation, 2nd Edition

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Format: eBook
Pub. Date: 2010-01-01
Publisher(s): Wiley
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Summary

A comprehensive look at the equity valuation processWith the Second Edition of Equity Asset Valuation, the distinguished team of Jerald Pinto, Elaine Henry, Thomas Robinson, and John Stowe, fully update information associated with this important discipline. Blending theory with practice, they 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.Unlike alternative works in this field, the Second Edition of Equity Asset Valuation clearly integrates finance and accounting concepts into the discussion-providing the evenness of subject matter treatment, consistency of notation, and continuity of topic coverage that is so critical to the learning process. Addresses essential issues in this arena, including the equity valuation process, discounted dividend valuation, free cash flow valuation, and residual income valuation Each author brings his own unique experiences and perspectives to the equity analysis process Distills the knowledge, skills, and abilities you need to succeed in today's fast-paced financial environment Companion Workbook also availableValuable for classroom study, self-study, and general reference, this book contains clear, example-driven coverage of many of today's most important valuation issues.

Table of Contents

Foreword
Acknowledgments
Introduction
Equity Valuation: Applications and Processes
Learning Outcomes
Introduction
Value Definitions and Valuation Applications
The Valuation Process
Communicating Valuation Results
Summary
Problems
Return Concepts
Learning Outcomes
Introduction
Return Concepts
The Equity Risk Premium
The Required Return on Equity
The Weighted Average Cost of Capital
Discount Rate Selection in Relation to Cash Flows
Summary
Discounted Dividend Valuation
Learning Outcomes
Introduction
Present Value Models
The Dividend Discount Model
The Gordon Growth Model
Multistage Dividend Discount Models
The Financial Determinants of Growth Rates
Summary
Free Cash Flow Valuation
Learning Outcomes
Introduction to Free Cash Flows
FCFF and FCFE Valuation Approaches
Forecasting Free Cash Flow
Free Cash Flow Model Variations
Nonoperating Assets and Firm Value
Summary
Residual Income Valuation
Learning Outcomes
Introduction
Residual Income
The Residual Income Model
Residual Income Valuation in Relation to Other Approaches
Accounting and International Considerations
Summary
Market-Based Valuation: Price and Enterprise Value Multiples
Learning Outcomes
Introduction
Price and Enterprise Value Multiples in Valuation
Price Multiples
Enterprise Value Multiples
International Considerations When Using Multiples
Momentum Valuation Indicators
Valuation Indicators: Issues in Practice
Summary
Private Company Valuation
Learning Outcomes
Introduction
The Scope of Private Company Valuation
Defi nitions (Standards) of Value
Private Company Valuation Approaches
Summary
Glossary
References
About the Authors
About the CFA Program
Index
Table of Contents provided by Publisher. All Rights Reserved.

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