Equity Valuation And Negative Earnings PDF Download
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| Author | : Ana Paula Matias Gama |
| Publisher | : Springer |
| Total Pages | : 173 |
| Release | : 2016-12-20 |
| Genre | : Business & Economics |
| ISBN | : 981103009X |
Download Equity Valuation and Negative Earnings Book in PDF, ePub and Kindle
Building upon Feltham and Ohlson models, this book examines positive loss-earnings within the context of the dot.com bubble during the boom years of the late 1990s bull market. The strong demand for equity financing captured the imagination of investors from Europe and U.S. like never before. With a focus on U.S. Internet companies, the book explores both the birth and the death of the new economy, and how negative earnings and losses still garnered large investments and successful IPOs (Initial Public Offerings). As Internet based ventures and the digital economy keep attracting large amounts of equity financing, this book explains that there is something unique in the valuation and pricing of tech companies. The book was written for corporate financiers, capital market professionals, and academics to further their understanding of equity valuation and the effects of equity trading.
| Author | : |
| Publisher | : |
| Total Pages | : |
| Release | : 2017 |
| Genre | : Electronic book |
| ISBN | : |
Download Equity Valuation and Negative Earnings Book in PDF, ePub and Kindle
| Author | : Daniel W. Collins |
| Publisher | : |
| Total Pages | : |
| Release | : 1999 |
| Genre | : |
| ISBN | : |
Download Equity Valuation and Negative Earnings Book in PDF, ePub and Kindle
The assumption of a positive and homogeneous price-earnings relation across earnings realizations is examined. We seek to explain an anomalous negative price-earnings relation for firms reporting losses, and hypothesize the negative relation is caused by one or more omitted variables positively correlated with stock price but negatively correlated with current earnings. We consider three such correlated omitted variables -- earnings turnaround, prospects of becoming a takeover target, and book value of equity -- based on valuation or econometric arguments for their inclusion in a price-earnings model specification. We find that including beginning-of-year book value of equity eliminates the negative price-earnings relation for loss firms. Thus, the simple earnings capitalization model is misspecified, and the negative price-earnings relation is an outcome of this misspecification. We also show that the coefficient on earnings in the simple earnings capitalization model is positively biased for profit firms, and that the price-earnings relation is not homogeneous across profit and loss firms even after controlling for book value of equity. Additional analyses suggest book value of equity serves as a value-relevant variable rather than as a control for scale differences.
| Author | : Henri Theil |
| Publisher | : John Wiley & Sons |
| Total Pages | : 784 |
| Release | : 1971-06-15 |
| Genre | : Business & Economics |
| ISBN | : |
Download Principles of Econometrics Book in PDF, ePub and Kindle
Mathematical tools: matrix algebra; Statistical tools: inference and distribution theory; Least squares and the standerd linear model; Partial and miltiple correlation; The statistical analysis of sisturbances; Generalized least squares and linear constraints; The combination of several linear relations; Asymptotic distribution theory.
| Author | : Aswath Damodaran |
| Publisher | : John Wiley & Sons |
| Total Pages | : 698 |
| Release | : 2016-02-08 |
| Genre | : Business & Economics |
| ISBN | : 0470049375 |
Download Damodaran on Valuation Book in PDF, ePub and Kindle
"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.
| Author | : Aswath Damodaran |
| Publisher | : John Wiley & Sons |
| Total Pages | : 269 |
| Release | : 2011-03-29 |
| Genre | : Business & Economics |
| ISBN | : 1118064143 |
Download The Little Book of Valuation Book in PDF, ePub and Kindle
An accessible, and intuitive, guide to stock valuation Valuation is at the heart of any investment decision, whether that decision is to buy, sell, or hold. In The Little Book of Valuation, expert Aswath Damodaran explains the techniques in language that any investors can understand, so you can make better investment decisions when reviewing stock research reports and engaging in independent efforts to value and pick stocks. Page by page, Damodaran distills the fundamentals of valuation, without glossing over or ignoring key concepts, and develops models that you can easily understand and use. Along the way, he covers various valuation approaches from intrinsic or discounted cash flow valuation and multiples or relative valuation to some elements of real option valuation. Includes case studies and examples that will help build your valuation skills Written by Aswath Damodaran, one of today's most respected valuation experts Includes an accompanying iPhone application (iVal) that makes the lessons of the book immediately useable Written with the individual investor in mind, this reliable guide will not only help you value a company quickly, but will also help you make sense of valuations done by others or found in comprehensive equity research reports.
| Author | : Emmanuel O. Kumah |
| Publisher | : International Monetary Fund |
| Total Pages | : 75 |
| Release | : 2009-11-01 |
| Genre | : Business & Economics |
| ISBN | : 1451873891 |
Download Valuation of Unlisted Direct Investment Equity Book in PDF, ePub and Kindle
This paper analyzes the seven valuation methods for unlisted direct investment equity included in the recently adopted IMF Balance of Payments and International Investment Position Manual, Sixth Edition (BPM6). Based on publicly available Danish data, we test the three methods that are generally applicable and find that the choice of valuation method and estimation technique can have a highly significant impact on the international investment position, pointing to the need for further harmonization. The results show that the price-to-book value method generates more robust market value estimates than the price-to-earnings method. This finding suggests that the valuation basis for the forthcoming Coordinated Direct Investment Survey - own funds at book value -will provide useful information for compiling the international investment position.
| Author | : Jan Viebig |
| Publisher | : John Wiley & Sons |
| Total Pages | : 438 |
| Release | : 2008-04-30 |
| Genre | : Business & Economics |
| ISBN | : 0470758805 |
Download Equity Valuation Book in PDF, ePub and Kindle
Equity Valuation: Models from the Leading Investment Banks is a clear and reader-friendly guide to how today’s leading investment banks analyze firms. Editors Jan Viebig and Thorsten Poddig bring together expertise from UBS, Morgan Stanley, DWS Investment GmbH and Credit Suisse, providing a unique analysis of leading equity valuation models, from the very individuals who use them. Filled with real world insights, practical examples and theoretical approaches, the book will examine the strengths and weaknesses of some of the leading valuation approaches, helping readers understand how analysts: · estimate cash flows · calculate discount rates · adjust for accounting distortions · take uncertainty into consideration Written for investment professionals, corporate managers and anyone interested in developing their understanding of this key area, Equity Valuation: Models from the Leading Investment Banks will arm readers with the latest thinking and depth of knowledge necessary to make the right decisions in their valuation methodologies.
| Author | : Richard G. Sloan |
| Publisher | : |
| Total Pages | : 280 |
| Release | : 2004 |
| Genre | : Business enterprises |
| ISBN | : |
Download Equity Valuation and Analysis Book in PDF, ePub and Kindle
| Author | : Guochang Zhang |
| Publisher | : |
| Total Pages | : |
| Release | : 1999 |
| Genre | : |
| ISBN | : |
Download Accounting Information, Capital Investment Decisions, and Equity Valuation Book in PDF, ePub and Kindle
This paper combines the framework of Feltham/Ohlson (1996) with endogenous investment decisions to re-examine the role of book value and earnings for valuation. The paper recognizes that current accounting data contains information useful for guiding operating decisions, and operating activity is what underlies the generation of cash flows. By considering a firm's rational investment behavior, a connection is established between the current state of operation and the future cash flow stream. The valuation function derived within this setting exhibits some interesting properties. It is shown that equity value is an increasing and convex function of earnings for any given book value. On the other hand, for a given level of earnings, equity value can be either increasing in, insensitive to, or decreasing in book value, depending on a firm's operating efficiency and/or growth potential. The model further explains cross-sectional variations in the significance of earnings versus book value in value determination and the quot;anomalousquot; association between stock prices and negative earnings. The effect of conservatism on the properties of accounting-based valuation function is also examined. The theoretical predictions of the model are generally consistent with the evidence reported in empirical studies. Implications for empirical research design are discussed.
