Book description
Equity Valuation: Models from the Leading Investment Banks is a clear and reader-friendly guide to how today's leading investment banks analyze firms. Editors Jan Viebig and Thorsten Poddig bring together expertise from UBS, Morgan Stanley, DWS Investment GmbH and Credit Suisse, providing a unique analysis of leading equity valuation models, from the very individuals who use them. Filled with real world insights, practical examples and theoretical approaches, the book will examine the strengths and weaknesses of some of the leading valuation approaches, helping readers understand how analysts:
estimate cash flows
calculate discount rates
adjust for accounting distortions
take uncertainty into consideration
Written for investment professionals, corporate managers and anyone interested in developing their understanding of this key area, Equity Valuation: Models from the Leading Investment Banks will arm readers with the latest thinking and depth of knowledge necessary to make the right decisions in their valuation methodologies.
Table of contents
- Cover Page
- Dedication
- Title Page
- Copyright
- Contents
- Foreword
- Preface
- Acknowledgments
- Abbreviations
- Part I: Discounted Cash Flow (DCF) Models1
- Part II: Monte Carlo Free Cash Flow to the Firm (MC-FCFF) Models (Deutsche Bank/DWS)1
-
Part III: Beyond Earnings: A User's Guide to Excess Return Models and the HOLT CFROI® Framework1
- Chapter 7: Introduction 1
- Chapter 8: From Accounting to Economics – Part I
- Chapter 9: From Economics to Valuation – Part I
- Chapter 10: Where Does Accounting Go Wrong?
- Chapter 11: From Accounting to Economics: CFROI
- Chapter 12: From Accounting to Economics: Economic Profit
- Chapter 13: From Economics to Valuation – Part II
- Appendix 1
- Appendix 2
-
Part IV: Morgan Stanley ModelWare's Approach to Intrinsic Value: Focusing on Risk-Reward Trade-offs1
- Chapter 14: Introduction
- Chapter 15: Linking Fundamental Analysis to the Inputs of the Valuation Model
- Chapter 16: Our Valuation Framework
- Chapter 17: Linking Business Activity to Intrinsic Value: The ModelWare Profitability Tree
- Chapter 18: ModelWare's Intrinsic Value Approach
- Chapter 19: Treatment of Key Inputs
- Chapter 20: The Cost of Capital
- Chapter 21: Summary and Conclusions
- Appendix
-
Part V: UBS VCAM and EGQ Regression-based Valuation1
- Chapter 22: Introducing “EGQ” – Where Intrinsic Methods and Empirical Techniques Meet
-
Chapter 23: A Quick Guide to DCF and Economic Profit Analysis
- 23.1 POWERFUL ANALYTICAL FRAMEWORKS, BUT NOT A COMPLETE SOLUTION
- 23.2 DYNAMICS OF ECONOMIC PROFIT ANALYSIS
- 23.3 “UNADULTERATED EVA”
- 23.4 VALUE DYNAMIC 1: ROIC
- 23.5 VALUE DYNAMIC 2: INVESTED CAPITAL
- 23.6 VALUE DYNAMIC 3: WACC
- 23.7 VALUE DYNAMIC 4: THE VALUE CREATION HORIZON
- 23.8 COMBINING ALL FOUR VALUE DYNAMICS: EGQ
- Chapter 24: Regression-based Valuation
- Chapter 25: UBS Economic Growth Quotient
-
Chapter 26: UBS EGQ Regression Valuation
- 26.1 INTRINSIC MEETS RELATIVE VALUATION
- 26.2 EGQ REGRESSIONS: RELATIVE VALUATION THEATER
- 26.3 EGQ REGRESSIONS: A LAYERED ALPHA FRAMEWORK
- 26.4 Y -INTERCEPT INDICATES COST OF CAPITAL
- 26.5 SLOPE VS. Y -INTERCEPT INDICATES STYLE
- 26.6 EMERGENT VALUATION
- 26.7 WHY REGRESS EGQ VS. EV/NOPAT?
- 26.8 THINK OPPOSITE WHEN UNDER THE X -AXIS
- Chapter 27: Understanding Regressions
- Chapter 28: Appendix Discussions
- Part VI: Leverage Buyout (LBO) Models1
- Part VII: Valuation 101: Approaches and Alternatives
- Part VIII: Final Thoughts on Valuation1
- Index
Product information
- Title: Equity Valuation: Models from Leading Investment Banks
- Author(s):
- Release date: June 2008
- Publisher(s): Wiley
- ISBN: 9780470031490
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