Equity Valuation: Models from Leading Investment Banks

Index

Accounting tricks 21, 63–4

Accounting, basic structure of 200

Accrual accounting 27, 113, 207, 286

Additional adjustments (ADJ) 28, 63, 64, 79

Adjusted gross plant 123, 124, 126, 127, 130, 131, 135, 137

Adjusted present value (APV) 337, 339, 341, 346–7

Adjusted taxes 29–30, 259

Airline business 207

Alexander, G.J. 42, 277, 390, 395, 396

American Depository Shares (ADS) 57, 58

Analytical balance sheets 11–14

Ang, A. 387

Antikarov, V. 14

Arbitrage-free pricing 5, 384, 393

Arbitrage pricing theory (APT) 45

Asset turnover 18, 213, 228, 241

@Risk 88–103

Average revenues per user (ARPU) 58–61

Bacon, F. 86

Baidu.com, Inc. 48, 57–66

ARPU approach 61

capitalizing R&D expenses 67

enterprise value calculation 78

financial value drivers 75

free cash flows to the firm (FCFF) 68–9

fundamental value per share 79

long-term invested capital 73

net revenues 60

operating income 65

share price performance (2005–2007) 79–83

terminal value calculation 77

WACC assumptions 70

Bakshi, G. 393

Barbarians at the Gate 298

Barker, R. 14, 15

Barrett, M.E. 21, 23

Barth, M. 357

Bell, P.W. 285

Berkshire Hathaway 204

Bernard, V.L. 285

Bernoulli, D. 86, 388

Beta-estimation 234–5

Beta of a security 37–9

Bianco, D. 255, 256, 258, 259, 260, 266, 270, 271

Black-Scholes option pricing model 370

Black, F. 44, 370

Bloomberg 15, 37, 39, 80, 92, 94, 110, 213, 300, 307, 308, 309, 315, 330

Blume, M.E. 39

Bogue, M. 387

Bonds and stocks, differences between 7–8

Book value (BV) 11–12, 141–2, 147, 157, 164, 170, 206–8,