Damodaran on Valuation_ Security Analysis for Investment and Corporate Finance ( PDFDrive )
entry (either legal or as a consequence of infrastructure requirements)thatcanbeexpectedtokeepnewentrantsout for several years. ...
The first component of value is the present value of the expecteddividendsduringthehigh-growthperiod.Basedon thecurrentearningsp ...
Theterminalpricehastobediscountedbacktotodayusing thehigh-growthperiodcost ofequityof9.3%(and notthe stable-growthperiodcostofeq ...
estimatedvaluepershareforGoldmanSachsasafunctionof theexpectedgrowthratein earningsper shareforthenext five years. FIGURE 5.1Val ...
assessment ofthestockbeingundervalued.Theotheristo consider it a potential clue that we may be missing key elementsinthevaluatio ...
The value of expected dividends in the H model can be written as: where P 0 = Value of the firm now per share DPSt= DPS in yeart ...
basedontheinitialgrowthrate,thestablegrowthrate,and thelengthof theextraordinarygrowthperiod.While small deviations from this as ...
The stock can be valued using the H model: Thestockwastradingat£5.84inNovember2005,makingit close to fairly valued. Three-Stage ...
ga= Growth rate in high-growth phase (lastsn1 periods) gn= Growth rate in stable phase Πa= Payout ratio in high-growth phase Πn= ...
4 areexpectedtocontinuegrowingatthoseratesforaninitial period,butareexpectedtostartdeclininggraduallytowarda stablerateasthefirm ...
Afteryear5,weassumethatthebetawilldeclinetoward 1 in stablegrowth(whichwilloccurafterthe10thyear)andthat theriskpremiumforIndiaw ...
stable-growthperiodvalues.Sincethecostsofequitychange overtime,thecumulatedcostofequityisusedtocalculatethe presentvalueofdivide ...
sustainabilityofthebank’scurrenthighreturnonequity.If competitionarrivessoonerthanexpected,thevalueofequity willdrop drastically ...
gettothelatter,wehavetomakeassumptionsaboutcapital expenditures,depreciation,andworkingcapital.Togettothe former, we can begin w ...
assumingthatfirmscancontinuetodrawonexternalfunding to fund the dividend deficit in perpetuity. Applicability Notwithstandingits ...
regulatorycapitalratiosarecomputedonthebasisofbook value of equity. Insummary,then,thedividenddiscountmodelhasfarmore applicabil ...
been very strong, especially in the 1990s. By early 2000, more cash was being returned to stockholders in stock buybacks than in ...
unlikedividends,arenotsmoothedout.Inotherwords,afirm maybuyback$3billioninstockinoneyearandnotbuyback stockforthenextthreeyears. ...
In November 2005, ExxonMobil had the largest market capitalizationofanycompanyintheworld.Withthesurgein cash flowsgeneratedbyris ...
Atitsprevailingmarketpriceof$60ashare(inNovember 2005), ExxonMobil looks undervalued. Valuing Entire Markets or Sectors Allourex ...
«
12
13
14
15
16
17
18
19
20
21
»
Free download pdf