Equity Valuation

di Peter O. Christensen (Autore)

Gerald A. Feltham (Autore)

now publishers Inc, 2009

Equity Valuation reviews and critically examines the standard approach to equity valuation using a constant risk-adjusted cost of capital and develops a new valuation approach discounting risk-adjusted fundamentals using nominal zero-coupon interest rates. It is organized as follows: Chapter 2 (Risk-Adjusted Discount Rates) reviews standard valuation models based on risk-adjusted discount rates. Chapter 3 (Multi-Period Asset Pricing Theory and Accounting Relations) examines key results from multi-period asset pricing theory in discrete-time, and shows how equity valuation models can equivalently be based on free cash flows or accrual accounting numbers. Based on these results, the authors derive an accounting-based multi-period equity valuation model presented in Chapter 4 (An Accounting-Based Multi-period Equity Valuation Model) with equilibrium risk-adjustments determined by prices of aggregate consumption claims. Chapter 5 (Equity Valuation with HARA Utility) includes a general equilibrium analysis of a setting in which the investors have HARA utility, and aggregate consumption and residual operating income are jointly normally distributed. A set of appendices follows including Appendix B that extends the setting to preferences with external habit formation (which recently has gained popularity in asset pricing theory). Appendix C, which discusses the relationship between risk-adjusted expected cash flows and certainty equivalents.

• Autore: Peter O. Christensen, Gerald A. Feltham
• Editore: now publishers Inc
• Collana: Foundations and Trends (R) in Accounting
• Anno: 2009
• Rilegatura: Paperback / softback
• Pagine: 126 p.
• Dimensioni: 234 x 156 mm
• Peso: 189 gr.
• EAN: 9781601982728

Testo in English