This chapter describes the valuation models that stock market analysts use to uncover mispriced securities. The models presented are those used by fundamental analysts, those analysts who use information concerning the current and prospective profitability of a company to assess its fair market value.
This free book of Exercises reinforces theoretical applications of stock market analyses as a guide to Corporate Valuation
and Takeover and other texts in the bookboon series by Robert Alan Hill. The volatility of global markets and individual
shares, created by serial financial crises, economic recession and political instability means that investors (private,
institutional, or corporate) cannot rely on “number crunching”.
In this paper we develop a contingent valuation model for zero-coupon bonds with de-
fault. In order to emphasize the role of maturity time and place of the lenders claim in
the hierarchy of debt of a Þrm, we consider a Þrm that issues two bonds with different ma-
turities and different seniorage. The model allows us to analyze the implications of both
debt renegotiation and capital structure of a Þrm on the prices of bonds.
Chapter 1 provides the introduction to the rest of the text. This chapter discuss the terms and framework necessary to understand the more complex subjects that appear later in the book. The focus in this chapter and the rest of the text is on equity valuation. Chapter 1 will also discuss the various definitions of value, the valuation process, the application of valuation models, and the roles and responsibilities of analysts.
Chapter 18 - Equity valuation models. This chapter describes the valuation models that stock market analysts use to uncover mispriced securities. The models presented are those used by fundamental analysts, those analysts who use information concerning the current and prospective profitability of a company to assess its fair market value. We start with a discussion of alternative measures of the value of a company.
In this chapter, we turn our attention to option valuation issues. To understand most option valuation models requires considerable mathematical and statistical background. Still, many of the ideas and insights of these models can be demonstrated in simple examples, and we will concentrate on these.
Mục tiêu bài học:
Hiểu biết giá cổ phiếu phụ thuộc vào cổ tức
tương lai (dividends) và tăng trưởng cổ tức
(dividend growth) như thế nào.
Có thể tính được giá chứng khoán bằng cách
sử dụng mô hình tăng trưởng cổ tức (the
dividend growth model);
Hiểu biết các ủy viên hội đồng quản trị
(corporate directors) được bổ nhiệm ra sao;
Hiểu biết giá chứng khoán được yết như thế
Mathematical finance and financial engineering have been rapidly expanding fields of science over the past three decades. The main reason behind this phenomenon has been the success of sophisticated quantitative methodologies in helping professionals to manage financial risks. The newly developed credit derivatives industry has grown around the need to handle credit risk, which is one of the fundamental factors of financial risk. In recent years, we have witnessed a tremendous acceleration in research efforts aimed at better apprehending, modeling and hedging of this kind of risk
When asked why they tackled Mount Everest, climbers typically reply “Because it was
there”. Our motivation for writing Advanced Modelling in Finance is for exactly the
opposite reason. There were then, and still are now, almost no books that give due
prominence to and explanation of the use of VBA functions within Excel. There is an
almost similar lack of books that capture the true vibrant spirit of numerical methods
The first all-inclusive guidebook for designing, building, and implementing a sturdy core valuation/projection model
In today’s no-room-for-error corporate finance market, precise and effective financial modeling is essential for both determining a company’s current value and projecting its future performance. Yet few books have explained how to build models that accurately interpret a company’s financial statement, while none have focused on projection models.