Foundations and Trends (R) in Finance
1 total work
Valuation Approaches and Metrics focuses on the theory and practice of valuation of companies and stocks, providing an invaluable overview of the topic from both a practical and scholarly perspective. It reviews the finance literature on valuation and presents three approaches to valuation:
- Discounted cash flow valuation relating the value of an asset to the present value of expected future cash flows on that asset.
- Liquidation and accounting valuation built around valuing the existing assets of a firm using accounting estimates of value or ""book value"".
- Relative valuation estimating the value of an asset by looking at the pricing of ""comparable"" assets relative to a common variable like earnings, cash flows, book value or sales.
This book should be required reading for both finance practitioners and researchers.