Equity Markets, Valuation, and Analysis

Equity Markets, Valuation, and Analysis

by H. Kent Baker, Greg Filbeck, Halil Kiymaz
Released September 2020
Publisher(s): Wiley
ISBN: 9781119632931

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Book description

Sharpen your understanding of the financial markets with this incisive volume

Equity Markets, Valuation, and Analysis brings together many of the leading practitioner and academic voices in finance to produce a comprehensive and empirical examination of equity markets.

Masterfully written and edited by experts in the field, Equity Markets, Valuation, and Analysis introduces the basic concepts and applications that govern the area before moving on to increasingly intricate treatments of sub-fields and market trends. The book includes in-depth coverage of subjects including:

· The latest trends and research from across the globe

· The controversial issues facing the field of valuation and the future outlook for the field

· Empirical evidence and research on equity markets

· How investment professionals analyze and manage equity portfolios

This book balances its comprehensive discussion of the empirical foundations of equity markets with the perspectives of financial experts. It is ideal for professional investors, financial analysts, and undergraduate and graduate students in finance.

Table of contents

  1. Cover
  2. Acknowledgments
  3. About the Editors
  4. About the Chapter Authors
  5. CHAPTER 1: Equity Markets, Valuation, and Analysis: An Overview
    1. INTRODUCTION
    2. ABOUT THIS BOOK
    3. STRUCTURE OF THE BOOK
    4. SUMMARY AND CONCLUSIONS
    5. REFERENCES
  6. PART One: Background
    1. CHAPTER 2: Ownership Structure and Stock Classes
      1. INTRODUCTION
      2. SINGLE-CLASS COMMON EQUITY
      3. DUAL-CLASS COMMON EQUITY
      4. SUMMARY AND CONCLUSIONS
      5. DISCUSSION QUESTIONS
      6. REFERENCES
    2. CHAPTER 3: Equity Markets and Performance
      1. INTRODUCTION
      2. THE EQUITY MARKET AND THE ECONOMY
      3. MARKET INDICATORS
      4. GOOD MARKETS – LIQUIDITY
      5. GOOD MARKETS – EFFICIENCY
      6. INFORMATION DISCLOSURE
      7. ENFORCEMENT
      8. MONETARY POLICIES
      9. INVESTMENTS: COMPARATIVE RISK AND RETURN
      10. STOCKS VERSUS BONDS: THE ISSUER'S PERSPECTIVE
      11. SUMMARY AND CONCLUSIONS
      12. DISCUSSION QUESTIONS
      13. REFERENCES
    3. CHAPTER 4: Securities Regulation
      1. INTRODUCTION
      2. TRADING RULES AND RULES PERTAINING TO BROKER-DEALER CONDUCT
      3. SURVEILLANCE
      4. ENFORCEMENT
      5. IMPACT OF TRADING RULES AND SURVEILLANCE ON CORPORATE OUTCOMES
      6. SUMMARY AND CONCLUSIONS
      7. DISCUSSION QUESTIONS
      8. REFERENCES
    4. CHAPTER 5: Investor Psychology and Equity Market Anomalies
      1. INTRODUCTION
      2. INVESTOR PSYCHOLOGY: BOUNDED RATIONALITY
      3. INVESTOR PSYCHOLOGY: PROSPECT THEORY
      4. EQUITY MARKET ANOMALIES: VIOLATIONS OF THE EMH
      5. SUMMARY AND CONCLUSIONS
      6. DISCUSSION QUESTIONS
      7. REFERENCES
  7. PART Two: Valuation and Analysis
    1. CHAPTER 6: Financial Statement Analysis and Forecasting
      1. INTRODUCTION
      2. BACKGROUND
      3. TECHNICAL ANALYSIS–BASED FORECASTING
      4. TIME SERIES–BASED FORECASTING
      5. FUNDAMENTAL ANALYSIS–BASED FORECASTING
      6. PROCESS OF ANALYZING FINANCIAL STATEMENTS
      7. EVIDENCE ON THE USEFULNESS OF FINANCIAL STATEMENT ANALYSIS
      8. SECURITY ANALYSTS AND FINANCIAL STATEMENT ANALYSIS
      9. LIMITATIONS OF USING FINANCIAL STATEMENT ANALYSIS IN FORECASTING
      10. SUMMARY AND CONCLUSION
      11. DISCUSSION QUESTIONS
      12. REFERENCES
    2. CHAPTER 7: Fundamentals of Equity Valuation
      1. INTRODUCTION
      2. WHAT IS EQUITY VALUATION?
      3. FREE CASH FLOW–BASED VALUATION
      4. DIVIDEND-BASED VALUATION
      5. MARKET-BASED VALUATION: MULTIPLES AND RATIOS
      6. MODELING THE REQUIRED ASSET RETURN
      7. OPTION THEORY–BASED VALUATION
      8. SUMMARY AND CONCLUSIONS
      9. DISCUSSION QUESTIONS
      10. REFERENCES
    3. CHAPTER 8: Company Analysis
      1. INTRODUCTION
      2. THREE STEPS LINKING BUSINESS ACTIVITIES TO EQUITY PRICES
      3. ACCOUNTING ANALYSIS
      4. FUNDAMENTAL ANALYSIS
      5. SUMMARY AND CONCLUSIONS
      6. DISCUSSION QUESTIONS
      7. REFERENCES
    4. CHAPTER 9: Technical Analysis
      1. INTRODUCTION
      2. BACKGROUND
      3. PULLING IT ALL TOGETHER: FUNDAMENTALS, BIASES, AND TRENDS
      4. SUMMARY AND CONCLUSIONS
      5. DISCUSSION QUESTIONS
      6. REFERENCES
    5. CHAPTER 10: Discounted Dividend Valuation
      1. INTRODUCTION
      2. THE GENERAL MODEL
      3. CONSTANT GROWTH OR GORDON MODEL
      4. MULTISTAGE MODELS
      5. STOCHASTIC MODELS
      6. USES OF DDMS
      7. EMPIRICAL TESTS OF THE DIVIDEND DISCOUNT MODEL
      8. SUMMARY AND CONCLUSIONS
      9. DISCUSSION QUESTIONS
      10. REFERENCES
    6. CHAPTER 11: Free Cash Flow Valuation
      1. INTRODUCTION
      2. GENERAL APPROACH TO FCF ANALYSIS
      3. FOUR SPECIAL CASES OF FCF VALUATION APPROACHES
      4. SUMMARY AND CONCLUSIONS
      5. DISCUSSION QUESTIONS
      6. REFERENCES
    7. CHAPTER 12: Market-based Valuation
      1. INTRODUCTION
      2. WIDELY USED VALUATION MULTIPLES AND VALUATION STEPS
      3. SELECTING COMPARABLE FIRMS
      4. THE EFFICACY OF DIFFERENT MULTIPLES IN VALUATION
      5. COMMON FACTORS DETERMINING DIFFERENT MULTIPLES
      6. SUMMARY AND CONCLUSIONS
      7. DISCUSSION QUESTIONS
      8. REFERENCES
    8. CHAPTER 13: Residual Income Valuation
      1. INTRODUCTION
      2. HISTORY AND FOUNDATIONS OF RESIDUAL INCOME
      3. COMPUTING RESIDUAL INCOME
      4. EQUITY VALUATION USING RESIDUAL INCOME
      5. NUMERICAL EXAMPLE
      6. APPLYING RI TO EQUITY VALUATION
      7. EVALUATION AND CRITIQUE OF RESIDUAL INCOME
      8. SUMMARY AND CONCLUSIONS
      9. DISCUSSION QUESTIONS
      10. REFERENCES
    9. CHAPTER 14: Private Company Valuation
      1. INTRODUCTION
      2. DCF VALUATION METHODS FOR PRIVATE COMPANIES
      3. THE COMPARABLE FIRMS APPROACH IN PRIVATE COMPANY VALUATION
      4. THE VENTURE CAPITAL METHOD FOR HIGH-GROWTH PRIVATE COMPANIES
      5. OPTION VALUATION FOR PRIVATE COMPANIES
      6. SUMMARY AND CONCLUSIONS
      7. DISCUSSION QUESTIONS
      8. REFERENCES
  8. PART Three: Equity Investment Models and Strategies
    1. CHAPTER 15: Equity Investing Strategies
      1. INTRODUCTION
      2. VALUE INVESTING
      3. GROWTH INVESTING
      4. GROWTH AT A REASONABLE PRICE
      5. INCOME INVESTING
      6. INDEX INVESTING
      7. QUANTITATIVE TRADING
      8. TECHNICAL ANALYSIS
      9. OPTIONS STRATEGIES
      10. ESG INVESTING
      11. SUMMARY AND CONCLUSIONS
      12. DISCUSSION QUESTIONS
      13. REFERENCES
    2. CHAPTER 16: Factor Investing
      1. INTRODUCTION
      2. HISTORY
      3. FACTORS OF PROMINENCE
      4. RECENT FACTOR DISCOVERIES
      5. PORTFOLIO IMPLEMENTATION CONSIDERATIONS
      6. SUMMARY AND CONCLUSIONS
      7. DISCUSSION QUESTIONS
      8. REFERENCES
    3. CHAPTER 17: Smart Beta Strategies versus Alpha Strategies
      1. INTRODUCTION
      2. WHAT IS SMART BETA?
      3. EMPIRICAL EVIDENCE FROM FACTOR INVESTING AND SMART BETA STUDIES
      4. RECENT EMPIRICAL EVIDENCE FROM THE U.S. ETF MARKET
      5. SUMMARY AND CONCLUSIONS
      6. DISCUSSION QUESTIONS
      7. REFERENCES
    4. CHAPTER 18: Activist and Impact Investing
      1. INTRODUCTION
      2. METHODS OF ACTIVISM
      3. INSTITUTIONAL ACTIVISTS
      4. INDIVIDUAL ACTIVISTS
      5. IMPACT INVESTING
      6. SUMMARY AND CONCLUSIONS
      7. DISCUSSION QUESTIONS
      8. REFERENCES
    5. CHAPTER 19: Socially Responsible Investing
      1. INTRODUCTION
      2. A BRIEF HISTORY OF SRI IN THE UNITED STATES
      3. ESG GROWTH IN POOLED INVESTMENT VEHICLES
      4. RESPONSIBLE INVESTING GROWTH BY INSTITUTIONAL INVESTORS
      5. THE PERFORMANCE OF SUSTAINABLE INVESTMENTS
      6. LACK OF GUIDELINES ON VOLUNTARY NONFINANCIAL DISCLOSURE
      7. ESG DISCLOSURE AND ASSET MANAGER VALUATION METHODOLOGY
      8. ESG DISCLOSURE LACKS USEFULNESS
      9. METHODS FOR OPERATIONALIZING ESG ISSUES
      10. FIDUCIARY DUTY AND ESG INVESTING
      11. ESG INTEGRATION FOR EQUITIES
      12. CONSIDERATIONS FOR INTEGRATING ESG
      13. CASE STUDY
      14. SUMMARY AND CONCLUSIONS
      15. DISCUSSION QUESTIONS
      16. REFERENCES
    6. CHAPTER 20: Pooled Investment Vehicles
      1. INTRODUCTION
      2. OPEN-END MUTUAL FUNDS
      3. CLOSED-END FUNDS
      4. UNIT INVESTMENT TRUSTS
      5. EXCHANGE-TRADED FUNDS
      6. SUMMARY AND CONCLUSIONS
      7. DISCUSSION QUESTIONS
      8. REFERENCES
  9. PART Four: Special Equity Topics
    1. CHAPTER 21: Investing in Private Equity
      1. INTRODUCTION
      2. PERFORMANCE OF PE FUNDS
      3. PERFORMANCE PERSISTENCE
      4. FACTORS DRIVING PE PERFORMANCE
      5. RISK FACTORS OF PE FUNDS
      6. SUMMARY AND CONCLUSIONS
      7. DISCUSSION QUESTIONS
      8. REFERENCES
    2. CHAPTER 22: Investing in Emerging Markets
      1. INTRODUCTION
      2. CAPITAL FLOWS TO EMERGING MARKETS
      3. ISSUES RELATED TO CAPITAL MARKET INTEGRATION
      4. INSTITUTIONAL STRATEGIES FOR BETTER INVESTMENT DECISIONS
      5. POLITICAL CONNECTIONS, INVESTMENT DECISIONS, AND PERFORMANCE
      6. CORPORATE GOVERNANCE AND PERFORMANCE
      7. VALUATION PRACTICES IN EMERGING MARKETS
      8. SUMMARY AND CONCLUSIONS
      9. DISCUSSION QUESTIONS
      10. REFERENCES
    3. CHAPTER 23: Disclosure Regulations in Emerging Economies and Their Impact on Equity Markets
      1. INTRODUCTION
      2. VARIOUS DISCLOSURE REGULATION APPROACHES
      3. ENVIRONMENTAL AND CSR DISCLOSURE IN EMERGING MARKETS
      4. INSIDER TRADING, DISCLOSURES, AND RELATED REGULATION
      5. INFORMATION DISCLOSURE THROUGH PRIVATE IN-HOUSE MEETINGS
      6. SUMMARY AND CONCLUSIONS
      7. DISCUSSION QUESTIONS
      8. REFERENCES
    4. CHAPTER 24: Equity Crowdfunding Investments
      1. INTRODUCTION
      2. TYPES OF CROWDFUNDING
      3. THE JOBS ACT OF 2012
      4. CROWDFUND INVESTMENT OPPORTUNITIES AND INCENTIVES
      5. CROWDFUND INVESTMENT CHALLENGES AND DISINCENTIVES
      6. ACADEMIC RESEARCH
      7. SUMMARY AND CONCLUSIONS
      8. DISCUSSION QUESTIONS
      9. REFERENCES
  10. Discussion Questions and Answers (Chapters 2–24)
    1. CHAPTER 2 OWNERSHIP STRUCTURE AND STOCK CLASSES
    2. CHAPTER 3 EQUITY MARKETS AND PERFORMANCE
    3. CHAPTER 4 SECURITIES REGULATION
    4. CHAPTER 5 INVESTOR PSYCHOLOGY AND EQUITY MARKET ANOMALIES
    5. CHAPTER 6 FINANCIAL STATEMENT ANALYSIS AND FORECASTING
    6. CHAPTER 7 FUNDAMENTALS OF EQUITY VALUATION
    7. CHAPTER 8 COMPANY ANALYSIS
    8. CHAPTER 9 TECHNICAL ANALYSIS
    9. CHAPTER 10 DISCOUNTED DIVIDEND VALUATION
    10. CHAPTER 11 FREE CASH FLOW VALUATION
    11. CHAPTER 12 MARKET-BASED VALUATION
    12. CHAPTER 13 RESIDUAL INCOME VALUATION
    13. CHAPTER 14 PRIVATE COMPANY VALUATION
    14. CHAPTER 15 EQUITY INVESTING STRATEGIES
    15. CHAPTER 16 FACTOR INVESTING
    16. CHAPTER 17 SMART BETA STRATEGIES VERSUS ALPHA STRATEGIES
    17. CHAPTER 18 ACTIVIST AND IMPACT INVESTING
    18. CHAPTER 19 SOCIALLY RESPONSIBLE INVESTING
    19. CHAPTER 20 POOLED INVESTMENT VEHICLES
    20. CHAPTER 21 INVESTING IN PRIVATE EQUITY
    21. CHAPTER 22 INVESTING IN EMERGING MARKETS
    22. CHAPTER 23 DISCLOSURE REGULATIONS IN EMERGING ECONOMIES AND THEIR IMPACT ON EQUITY MARKETS
    23. CHAPTER 24 EQUITY CROWDFUNDING INVESTMENTS
  11. Index
  12. End User License Agreement

Product information

  • Title: Equity Markets, Valuation, and Analysis
  • Author(s): H. Kent Baker, Greg Filbeck, Halil Kiymaz
  • Release date: September 2020
  • Publisher(s): Wiley
  • ISBN: 9781119632931