A comprehensive look at the equity valuation process. With the Second Edition of Equity Asset Valuation, the distinguished team of Jerald Pinto, Elaine Henry, Thomas Robinson, and John Stowe, fully update information associated with this important discipline. Blending theory with practice, they detail the contemporary techniques used to determine the intrinsic value of an equity security, and show you how to successfully apply these techniques in both foreign and domestic markets.
Unlike alternative works in this field, the Second Edition of Equity Asset Valuation clearly integrates finance and accounting concepts into the discussion-providing the evenness of subject matter treatment, consistency of notation, and continuity of topic coverage that is so critical to the learning process.
Valuable for classroom study, self-study, and general reference, this book contains clear, example-driven coverage of many of today's most important valuation issues.
Key Features
- Addresses essential issues in this arena, including the equity valuation process, discounted dividend valuation, free cash flow valuation, and residual income valuation
- Each author brings his own unique experiences and perspectives to the equity analysis process
- Distills the knowledge, skills, and abilities you need to succeed in today's fast-paced financial environment
- Companion Workbook also available
New to this edition
- Updated coverage of all topic areas.
- New coverage of private company valuation.
- Expanded coverage of required rate of return estimation and related topics.
- Increased global orientation including additional material on emerging markets.
- Expanded coverage of enterprise value multiples and related topics.
- Integrated approach to the application of accounting and finance to valuation.
- Contains a contribution on Private Company Valuation by Raymond D. Rath, CFA, Director, Transaction Services - Accounting, Valuation & Financial Reporting Advisory,
- PricewaterhouseCoopers LLP.
Contents
Chapter 1 Equity Valuation: Applications and Processes
- 1. Introduction
- 2. Value Defi nitions and Valuation Applications
- 3. The Valuation Process
- 4. Communicating Valuation Results
- 5. Summary
Chapter 2 Return Concepts
- 1. Introduction
- 2. Return Concepts
- 3. The Equity Risk Premium
- 4. The Required Return on Equity
- 5. The Weighted Average Cost of Capital
- 6. Discount Rate Selection in Relation to Cash Flows
- 7. Summary
Chapter 3 Discounted Dividend Valuation
- 1. Introduction
- 2. Present Value Models
- 3. The Dividend Discount Model
- 4. The Gordon Growth Model
- 5. Multistage Dividend Discount Models
- 6. The Financial Determinants of Growth Rates
- 7. Summary
Chapter 4 Free Cash Flow Valuation
- 1. Introduction to Free Cash Flows
- 2. FCFF and FCFE Valuation Approaches
- 3. Forecasting Free Cash Flow
- 4. Free Cash Flow Model Variations
- 5. Nonoperating Assets and Firm Value
- 6. Summary
Chapter 5 Residual Income Valuation
- 1. Introduction
- 2. Residual Income
- 3. The Residual Income Model
- 4. Residual Income Valuation in Relation to Other Approaches
- 5. Accounting and International Considerations
- 6. Summary
Chapter 6 Market-Based Valuation: Price and Enterprise Value Multiples
- 1. Introduction
- 2. Price and Enterprise Value Multiples in Valuation
- 3. Price Multiples
- 4. Enterprise Value Multiples
- 5. International Considerations When Using Multiples
- 6. Momentum Valuation Indicators
- 7. Valuation Indicators: Issues in Practice
- 8. Summary
Chapter 7 Private Company Valuation
- 1. Introduction
- 2. The Scope of Private Company Valuation
- 3. Definitions (Standards) of Value
- 4. Private Company Valuation Approaches
- 5. Summary
- Glossary
- References
- About the Authors
- About the CFA Program
- Index
About the Authors
- JERALD E. PINTO, PHD, CFA, is Director, Curri-culum Projects, in the Education Division at CFA Institute. Before coming to the CFA Institute in 2002, he consulted to corporations, foundations, and partnerships in investment planning, portfolio analysis, valuation, and quantitative analysis. Pinto also worked in the investment and banking industries in New York and taught finance at NYU's Stern School of Business. He holds an MBA from Baruch College, a PhD in finance from the Stern School, and is a member of CFA Virginia.
- ELAINE HENRY, PHD, CFA, is an Assistant Professor of Accounting at the University of Miami, where she teaches courses in accounting, financial statement analysis, and valuation. After working in corporate finance at Lehman Brothers, strategy consulting at McKinsey & Company, and corporate banking at Citibank, she obtained a PhD from Rutgers University where she majored in accounting and minored in finance.
- THOMAS R. ROBINSON, PHD, CFA, CPA, CFP, is Managing Director of the Education Division at CFA Institute. He joined the CFA Institute as head of educational content in 2007 from the University of Miami, where he was an associate professor of accounting and director of the Master of Professional Accounting Program. Robinson was also concurrently managing director of a private wealth investment advisory firm. He was active locally and nationally with CFA Institute prior to joining the staff.
- JOHN D. STOWE, PHD, CFA, is O'Bleness Chair Professor of Finance at Ohio University. He previously served as Head of Curriculum Development and Director of Exam Development at the CFA Institute. Stowe has also been professor of finance and associate dean at the University of Missouri-Columbia, where he taught investments and corporate finance. Stowe has won several teaching awards and has published frequently in academic and professional journals in finance. He is also coauthor of a college-level textbook in corporate finance. Stowe earned his BA from Centenary College and his PhD in economics from the University of Houston. He obtained his CFA charter in 1995.
Book Details
- Hardcover: 464 pages
- Publisher: Wiley; 2 edition (February 8, 2010)
- Language: English
- ISBN-10: 0470571438
- ISBN-13: 978-0470571439
- Product Dimensions: 7.4 x 1.1 x 10.3 inches
- List Price: $95.00