Damodaran on Valuation_ Security Analysis for Investment and Corporate Finance ( PDFDrive )
cashflows.Earningtherisk-adjustedrequiredreturn(costof capitalorequity)isconsideredanormalreturncashflow,but anycashflowsaboveor ...
debt benefits and costs separately from the value of the operating assets. While proponentsofeachapproach liketoclaimthat their ...
thegreaterthevariation,thegreatertherisk.Whenlookingat equity, we tend to use measures of risk based on return variance.Thenextc ...
usethedividendsascashflowsarecalleddividenddiscount models.Abroaderdefinitionofcashflowstoequitywouldbe the cash flows left over ...
followthefirm.Thebiasassociatedwithboththesesources should raise questions about the resulting valuations. Inthis book,we promot ...
contrarianinthesensethatitforcesanalyststolookforthe fundamentals that drive value rather than what market perceptions are. Cons ...
an intrinsic valuation. Extending this analogy to stocks, investorsoftendecidewhetherastockischeaporexpensive bycomparingitspric ...
cardsand 1965 FordMustangsoutthereandthatthepricesat whichtheyhavebeenboughtandsoldcanbeobtained.With equity valuation, relative ...
2.Peergroupaverage.Analystscomparehowtheircompany ispriced(usingamultiple)withhowthepeergroupispriced (using the average for tha ...
Applicability of Multiples and Limitations Theallureof multiplesisthattheyaresimpleand easyto relate to. They can be used to obt ...
these firms. If, for instance, we find a company to be undervalued because it trades at 15 times earnings and comparablecompanie ...
bevaluedasafunctionofthefollowingvariables:thecurrent valueandthevarianceinvalueoftheunderlyingasset,the strikepriceandthetimeto ...
specifiedlevel.Therearemanyassetsthatgenerallyarenot viewed as options but still share option characteristics. A patentcanbeanal ...
models.Itcan,however, bevaluedasanoption.Thesame canbe said aboutequity ina money-losing companywith substantialdebt;mostinvesto ...
underlying asset and the variancein that value cannot be extractedfrom financialmarkets andhaveto be estimated. Thus the final v ...
Fundamental Analysts Theunderlyingthemeinfundamentalanalysisisthatthetrue value of the firm can be related to its financial char ...
Theirfocusis notsomuchonwhatthecompanyis worth todaybutratherwhatitsvaluewouldbeifitweremanaged well. Investors like Carl Icahn, ...
predictable patterns, that there are not enough marginal investors taking advantage of these patterns to eliminate them,andthat ...
movements thanto selectstocks and thatthesepredictions canbebasedonfactorsthatareobservable.Whilevaluation of individual stocks ...
growthandriskareimpliedinthismarketprice,ratherthan on finding undervalued or overvalued firms. Valuation in Acquisition Analysi ...
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