Search Results - subject:"Terminal value"

Free cash flows, valuation and growth opportunities bias

Shefrin, Hersh - In: Journal of investment management : JOIM 12 (2014) 4, pp. 4-26

Persistent link: https://www.econbiz.de/10011634683

A new approach to WACC, value of tax savings and value for growing and non growing perpetuities: A clarification

Velez-Pareja, Ignacio - MASTER CONSULTORES - 2007

forecasted financial plan for a firm or project could be, terminal value usually is calculated as aperpetuity. This terminal … value might be a growing or a non growing perpetuity. On the other hand, usually terminal value is a substantial part of the … the calculation of terminal value, which is the value of the perpetuity. We compare the typical textbook proposals for …

Persistent link: https://www.econbiz.de/10010762933

Proper valuation of perpetuities in an inflationary environment without real growth

Velez-Pareja, Ignacio - MASTER CONSULTORES - 2007

We examine the proper valuation of perpetuities without real growth. The case of a pure" non growing perpetuity (zero real growth and zero inflation) is of academic interest but in practice it might be difficult to find. The findings contradict what is generally accepted in the literature. In...

Persistent link: https://www.econbiz.de/10010762983

Conditions for consistent valuation of a growing perpetuity

Velez-Pareja, Ignacio - MASTER CONSULTORES - 2007

Using the model proposed by Velez-Pareja (2006) and assuming straight line depreciation we examine the conditions to assure a constant growth rate in a growingperpetuity. Our findings are that in practical terms for a growing perpetuity there are two options: either depreciation life is one year...

Persistent link: https://www.econbiz.de/10010763082

Multi-period asset lifetimes and accounting-based equity valuation : take care with constant-growth terminal value models!

Meitner, Matthias - In: Abacus : a journal of accounting, finance and business … 49 (2013) 3, pp. 340-366

Persistent link: https://www.econbiz.de/10010197947

Inflation and the constant growth model : reconciling the literature

Kiechle, Daniel; Lampenius, Niklas - In: Abacus : a journal of accounting, finance and business … 48 (2012) 4, pp. 518-538

Persistent link: https://www.econbiz.de/10009692850

Consistency in Chocolate. A Fresh Look at Copeland’s Hershey Foods & Co Case

Vélez-Pareja, Ignacio; Tham, Joseph - MASTER CONSULTORES - 2004

In cash flow valuation, on grounds of simplicity, it is common to assume that the leverage is constant over time. With constant leverage, the return to levered equity is constant and consequently, the Weighted Average Cost of Capital (WACC) applied to the Free Cash Flow is constant. However,...

Persistent link: https://www.econbiz.de/10010762922

Hershey Chocolate in Two Flavors: Kd and Ku

Vélez-Pareja, Ignacio; Tham, Joseph - MASTER CONSULTORES - 2004

for the tax savings is Kd, the cost of debt and using finite cash flows. In this paper, we use the terminal value …

Persistent link: https://www.econbiz.de/10010763016

A Practical Guide for Consistency in Valuation: Cash Flows, Terminal Value and Cost of Capital

Pareja, Ignacio Vélez; Pérez, Antonio Burbano - MASTER CONSULTORES - 2003

with the consistency between the terminal value and growth for the FCF and the terminal value and growth for the CFE. And …

Persistent link: https://www.econbiz.de/10010763033

Extended Dividend, Cash Flow and Residual Income ValuationModels - Accounting for Deviations from Ideal Conditions

Hess, Dieter; Homburg, Carsten; Lorenz, Michael; … - Universität <Köln> / Seminar für Allgemeine … - 2009

Standard equity valuation approaches (i.e., DDM, RIM, and DCF) are derivedunder the assumption of ideal conditions, such as infinite payoffs and cleansurplus accounting. Since these conditions are hardly ever met, we provideextensions of the standard approaches based on the fundamental principle...

Persistent link: https://www.econbiz.de/10005866810