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Equity value as a function of (eps1, eps2, dps1, bvps, beta) : concepts and realities

Ohlson, James A.; Johannesson, Erik - In: Abacus : a journal of accounting, finance and business … 52 (2016) 1, pp. 70-99

Persistent link: https://www.econbiz.de/10011581785

A case study of bank equity valuation methods employed by South African, Nigerian and Kenyan equity researchers

Moyo, Vusani; Obadire, Ayodeji Michael - In: Risks : open access journal 12 (2024) 6, pp. 1-22

The valuation of banks is inherently complicated because of the uncertainties arising from their information opaqueness … and inherent risks. Unlike non-banking firms, banks require specialised equity-side valuation approaches. This study … addresses a gap in the literature by examining valuation methods used by bank equity researchers. The study used a total of 201 …

Persistent link: https://www.econbiz.de/10014636772

Cost of Capital with Levered Cost of Equity as the Risk of Tax Shields

Tham, Joseph - 2011

We present the derivation of cost of capital under the assumption of risky tax shields discounted with the cost of levered equity. We show that the formulation is consistent and is derived from basic financial principles. This formulation is valid for finite cash flows and non growing...

Persistent link: https://www.econbiz.de/10013133138

Management Forecasts and the Cost of Equity Capital : International Evidence

Cao, Ying - 2017

In this paper, we examine international differences in the effect of management forecasts (which we use to proxy for voluntary disclosure) on the cost of equity capital (COC) across 31 countries. We find that the issuance of management forecasts is associated with a lower COC worldwide, but the...

Persistent link: https://www.econbiz.de/10012973540

Conservatism in Corporate Valuation

Bach, Christian - School of Economics and Management, University of Aarhus - 2011

consumption rather than historical returns. I compare the pricing performance of the model with the standard CAPM based valuation … model, both considering the absolute valuation errors and an investment setting where simple investment strategies are made … comparing absolute valuation errors. Both models are able to explain abnormal returns impressively well, when constructing …

Persistent link: https://www.econbiz.de/10009293656

Forward-Looking Betas

Christoffersen, Peter; Jacobs, Kris; Vainberg, Gregory - School of Economics and Management, University of Aarhus - 2007

Few issues are more important for finance practice than the computation of market betas. Existing approaches compute market betas using historical data. While these approaches differ in terms of statistical sophistication and the modeling of the time-variation in the betas, they are all...

Persistent link: https://www.econbiz.de/10005440055

CAPM and capital budgeting: present versus future, equilibrium versus disequilibrium, decision versus valuation

Magni, Carlo Alberto - Volkswirtschaftliche Fakultät, … - 2007

Present Value and the disequilibrium Net Future Value may be used for valuation, given that they are additive. However …

Persistent link: https://www.econbiz.de/10005055505

The Changing Nature Of Market Risk

FRANZONI, Francesco

In the first three decades of CRSP data, value stocks have higher betas than growth stocks. Later on, the ranking is reversed and the gap in beta widens. What makes growth strategies nowadays bear more market risk than value strategies? What are the causes of the reversal in the ranking of...

Persistent link: https://www.econbiz.de/10005162950

Project valuation and investment decisions: CAPM versus arbitrage

Magni, Carlo Alberto - Volkswirtschaftliche Fakultät, … - 2007

This paper shows that (i) project valuation via disequilibrium NPV+CAPM contradicts valuation via arbitrage pricing …-based valuation violates value additivity. As a consequence, the standard use of CAPM for project valuation and decision making should …

Persistent link: https://www.econbiz.de/10005260104

Valuation and investment profession

Dedi, Lidija; Giraudon, Philippe - In: UTMS journal of economics / University of Tourism and … 4 (2013) 2, pp. 93-100

intrinsic value of the common stocks. Traditional valuation models based on the present value of future cash flows are affected … opportunities they have to expand traditional analysis with option valuation. …

Persistent link: https://www.econbiz.de/10009787042