Equity Asset Valuation, 2nd Edition

by Jerald E. Pinto (TRM Services ); Elaine Henry; Thomas R. Robinson; John D. Stowe (University of Missouri-Columbia ); Foreword by: Abby Cohen

• ISBN13: 9780470579633
• ISBN10: 0470579633
• Format: eBook
• Copyright: 2010-01-01
• Publisher: Wiley

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

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