{"product_id":"equity-valuation-isbn-9780470031490","title":"Equity Valuation","description":"\u003ci\u003eEquity Valuation: Models from the Leading Investment Banks\u003c\/i\u003e 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:  \u003cp\u003e·    estimate cash flows\u003c\/p\u003e \u003cp\u003e·    calculate discount rates\u003c\/p\u003e \u003cp\u003e·    adjust for accounting distortions\u003c\/p\u003e \u003cp\u003e·    take uncertainty into consideration\u003c\/p\u003e \u003cp\u003eWritten for investment professionals, corporate managers and anyone interested in developing their understanding of this key area, \u003ci\u003eEquity Valuation: Models from the Leading Investment Banks\u003c\/i\u003e will arm readers with the latest thinking and depth of knowledge necessary to make the right decisions in their valuation methodologies.\u003c\/p\u003e \u003cp\u003eForeword xiii\u003c\/p\u003e \u003cp\u003ePreface xvii\u003c\/p\u003e \u003cp\u003eAcknowledgments xxiii\u003c\/p\u003e \u003cp\u003eAbbreviations xxv\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart I Discounted Cash Flow (DCF) Models 1\u003cbr\u003e \u003c\/b\u003e\u003ci\u003eJan Viebig and Thorsten Poddig\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e1 Introduction 3\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e2 The Fundamental Value of Stocks and Bonds 5\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e3 Discounted Cash Flow Models: The Main Input Factors 11\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e3.1 Analytical balance sheets and free cash flow discount models 11\u003c\/p\u003e \u003cp\u003e3.2 The dividend discount model 14\u003c\/p\u003e \u003cp\u003e3.3 The free cash flow to the firm (FCFF) model 21\u003c\/p\u003e \u003cp\u003e3.3.1 Stirling Homex: why cash is king! 21\u003c\/p\u003e \u003cp\u003e3.3.2 FCFF during the competitive advantage period 27\u003c\/p\u003e \u003cp\u003e3.3.3 Weighted average cost of capital (WACC) 35\u003c\/p\u003e \u003cp\u003e3.3.4 Terminal value calculation 45\u003c\/p\u003e \u003cp\u003eReferences 49\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart II Monte Carlo Free Cash Flow to the Firm (MC-FCFF) Models (Deutsche Bank\/DWS) 53\u003cbr\u003e \u003c\/b\u003e\u003ci\u003eJan Viebig and Thorsten Poddig\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e4 Introduction 55\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e5 Standard FCFF Model 57\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e5.1 Net revenues 59\u003c\/p\u003e \u003cp\u003e5.2 Cost structure and operating income 63\u003c\/p\u003e \u003cp\u003e5.3 Reconciling operating income to FCFF 66\u003c\/p\u003e \u003cp\u003e5.4 The financial value driver approach 71\u003c\/p\u003e \u003cp\u003e5.5 Fundamental enterprise value and market value 76\u003c\/p\u003e \u003cp\u003e5.6 Baidu’s share price performance 2005–2007 79\u003c\/p\u003e \u003cp\u003e\u003cb\u003e6 Monte Carlo FCFF Models 85\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e6.1 Monte Carlo simulation: the idea 85\u003c\/p\u003e \u003cp\u003e6.2 Monte Carlo simulation with @Risk 88\u003c\/p\u003e \u003cp\u003e6.2.1 Monte Carlo simulation with one stochastic variable 88\u003c\/p\u003e \u003cp\u003e6.2.2 Monte Carlo simulation with several stochastic variables 98\u003c\/p\u003e \u003cp\u003e6.3 Disclaimer 103\u003c\/p\u003e \u003cp\u003eReferences 105\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart III Beyond Earnings: A User’s Guide to Excess Return Models and the HOLT CFROI® Framework 107\u003cbr\u003e \u003c\/b\u003e\u003ci\u003eTom Larsen and David Holland\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e7 Introduction 109\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e8 From Accounting to Economics – Part I 113\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e9 From Economics to Valuation – Part I 115\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e10 Where Does Accounting Go Wrong? 117\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e11 From Accounting to Economics: CFROI 119\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e11.1 The basics 119\u003c\/p\u003e \u003cp\u003e11.1.1 Return on net assets (RONA) or return on invested capital (ROIC) 120\u003c\/p\u003e \u003cp\u003e11.1.2 Return on gross investment (ROGI) 121\u003c\/p\u003e \u003cp\u003e11.1.3 Cash flow return on investment (CFROI) 121\u003c\/p\u003e \u003cp\u003e11.2 CFROI adjustments using Vodafone’s March 2005 annual report 123\u003c\/p\u003e \u003cp\u003e11.2.1 Gross investment 123\u003c\/p\u003e \u003cp\u003e11.2.2 Non-depreciating assets 131\u003c\/p\u003e \u003cp\u003e11.2.3 Project life 135\u003c\/p\u003e \u003cp\u003e11.2.4 Gross cash flow 137\u003c\/p\u003e \u003cp\u003e11.3 CFROI calculation for Vodafone 140\u003c\/p\u003e \u003cp\u003e11.4 A comment on goodwill 141\u003c\/p\u003e \u003cp\u003e\u003cb\u003e12 From Accounting to Economics: Economic Profit 145\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e12.1 The basics 145\u003c\/p\u003e \u003cp\u003e12.2 Caveats 147\u003c\/p\u003e \u003cp\u003e12.3 EP adjustments using Vodafone March 2005 annual report 148\u003c\/p\u003e \u003cp\u003e12.3.1 Balance Sheet 148\u003c\/p\u003e \u003cp\u003e12.3.2 Net operating profit after tax (NOPAT) 153\u003c\/p\u003e \u003cp\u003e12.3.3 Economic profit 153\u003c\/p\u003e \u003cp\u003e12.3.4 EP or CFROI? 154\u003c\/p\u003e \u003cp\u003e\u003cb\u003e13 From Economics to Valuation – Part II 157\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e13.1 General rules 157\u003c\/p\u003e \u003cp\u003e13.2 Market value added 157\u003c\/p\u003e \u003cp\u003e13.3 CFROI 157\u003c\/p\u003e \u003cp\u003e13.4 A word on debt 158\u003c\/p\u003e \u003cp\u003e13.5 Valuation 159\u003c\/p\u003e \u003cp\u003e13.5.1 CFROI valuation: general framework 159\u003c\/p\u003e \u003cp\u003e13.5.2 Understanding project returns 159\u003c\/p\u003e \u003cp\u003e13.5.3 The residual period 161\u003c\/p\u003e \u003cp\u003e13.5.4 CFROI residual period approach 164\u003c\/p\u003e \u003cp\u003e13.5.5 Economic profit valuation: general framework 165\u003c\/p\u003e \u003cp\u003e13.6 Valuation of Vodafone 167\u003c\/p\u003e \u003cp\u003e13.7 EP or CFROI? 171\u003c\/p\u003e \u003cp\u003e13.8 A final word 173\u003c\/p\u003e \u003cp\u003eAppendix 1: Vodafone Financial Statements and Relevant Notes for CFROI Calculation 175\u003c\/p\u003e \u003cp\u003eAppendix 2: Additional Notes from Vodafone Annual Report for EP Calculation 185\u003c\/p\u003e \u003cp\u003eReferences 191\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart IV Morgan Stanley ModelWare’s Approach to Intrinsic Value: Focusing on Risk-Reward Trade-offs 193\u003cbr\u003e \u003c\/b\u003e\u003ci\u003eTrevor S. Harris, Juliet Estridge and Doron Nissim\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e14 Introduction 195\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e15 Linking Fundamental Analysis to the Inputs of the Valuation Model 199\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e16 Our Valuation Framework 203\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e17 Linking Business Activity to Intrinsic Value: The ModelWare Profitability Tree 211\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e18 ModelWare’s Intrinsic Value Approach 219\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e19 Treatment of Key Inputs 231\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e20 The Cost of Capital 233\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e20.1 Risk-free rate 233\u003c\/p\u003e \u003cp\u003e20.2 Equity risk premium 234\u003c\/p\u003e \u003cp\u003e20.3 Beta-estimation 234\u003c\/p\u003e \u003cp\u003e\u003cb\u003e21 Summary and Conclusions 237\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eAppendix 239\u003c\/p\u003e \u003cp\u003eReferences 251\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart V UBS VCAM and EGQ Regression-based Valuation 253\u003cbr\u003e \u003c\/b\u003e\u003ci\u003eDavid Bianco\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e22 Introducing “EGQ” – Where Intrinsic Methods and Empirical Techniques Meet 255\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e23 A Quick Guide to DCF and Economic Profit Analysis 257\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e23.1 Powerful analytical frameworks, but not a complete solution 257\u003c\/p\u003e \u003cp\u003e23.2 Dynamics of economic profit analysis 257\u003c\/p\u003e \u003cp\u003e23.3 “Unadulterated EVA” 258\u003c\/p\u003e \u003cp\u003e23.4 Value dynamic 1: ROIC 258\u003c\/p\u003e \u003cp\u003e23.5 Value dynamic 2: invested capital 259\u003c\/p\u003e \u003cp\u003e23.6 Value dynamic 3: WACC 260\u003c\/p\u003e \u003cp\u003e23.7 Value dynamic 4: the value creation horizon 261\u003c\/p\u003e \u003cp\u003e23.8 Combining all four value dynamics: EGQ 261\u003c\/p\u003e \u003cp\u003e23.8.1 EGQ vs. PVGO 261\u003c\/p\u003e \u003cp\u003e23.8.2 The search for the ultimate valuation methodology 262\u003c\/p\u003e \u003cp\u003e\u003cb\u003e24 Regression-based Valuation 263\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e25 UBS Economic Growth Quotient 265\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e25.1 The EGQ calculation 265\u003c\/p\u003e \u003cp\u003e25.2 EGQ special attributes 265\u003c\/p\u003e \u003cp\u003e25.2.1 A complete metric 265\u003c\/p\u003e \u003cp\u003e25.2.2 Not influenced by the current capital base 265\u003c\/p\u003e \u003cp\u003e25.2.3 Limited sensitivity to the assumed cost of capital 266\u003c\/p\u003e \u003cp\u003e25.2.4 Comparable across companies of different size 266\u003c\/p\u003e \u003cp\u003e25.2.5 Explains observed multiples on flows like earnings or cash flow 267\u003c\/p\u003e \u003cp\u003e\u003cb\u003e26 UBS EGQ Regression Valuation 269\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e26.1 Intrinsic meets relative valuation 269\u003c\/p\u003e \u003cp\u003e26.2 EGQ regressions: relative valuation theater 270\u003c\/p\u003e \u003cp\u003e26.3 EGQ regressions: a layered alpha framework 271\u003c\/p\u003e \u003cp\u003e26.4 Y-intercept indicates cost of capital 271\u003c\/p\u003e \u003cp\u003e26.5 Slope vs. Y-intercept indicates style 271\u003c\/p\u003e \u003cp\u003e26.6 Emergent valuation 272\u003c\/p\u003e \u003cp\u003e26.7 Why regress EGQ vs. EV\/NOPAT? 272\u003c\/p\u003e \u003cp\u003e26.8 Think opposite when under the X-axis 273\u003c\/p\u003e \u003cp\u003e\u003cb\u003e27 Understanding Regressions 275\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e27.1 Key takeaways 275\u003c\/p\u003e \u003cp\u003e27.2 The line – what is the relationship? 276\u003c\/p\u003e \u003cp\u003e27.2.1 Slope (beta) 276\u003c\/p\u003e \u003cp\u003e27.2.2 y-intercept (alpha) 277\u003c\/p\u003e \u003cp\u003e27.3 The explanatory power or strength of the relationship 277\u003c\/p\u003e \u003cp\u003e27.3.1 Correlation coefficient (R) 277\u003c\/p\u003e \u003cp\u003e27.3.2 Coefficient of determination (R-squared) 277\u003c\/p\u003e \u003cp\u003e27.4 Reliability or confidence in the quantified relationship 278\u003c\/p\u003e \u003cp\u003e27.4.1 Standard error (of beta) 278\u003c\/p\u003e \u003cp\u003e27.4.2 t-Statistic 278\u003c\/p\u003e \u003cp\u003e27.5 Regression outliers 278\u003c\/p\u003e \u003cp\u003e27.5.1 Influence outliers 278\u003c\/p\u003e \u003cp\u003e27.5.2 Leverage outliers 278\u003c\/p\u003e \u003cp\u003e27.6 Beware of outliers in EGQ regressions 279\u003c\/p\u003e \u003cp\u003e\u003cb\u003e28 Appendix Discussions 281\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e28.1 EGQ’s muted sensitivity to assumed WACC 281\u003c\/p\u003e \u003cp\u003e28.2 EV\/IC vs. ROIC\/WACC regressions 282\u003c\/p\u003e \u003cp\u003e28.3 PE vs. EPS growth regressions or PEG ratios 284\u003c\/p\u003e \u003cp\u003e28.4 Return metrics: ROIC vs. CFROI 285\u003c\/p\u003e \u003cp\u003e28.5 Accrual vs. cash flow return measures 286\u003c\/p\u003e \u003cp\u003e28.6 ROIC vs. CFROI 286\u003c\/p\u003e \u003cp\u003e28.7 Adjusting invested capital important, but not for EGQ 288\u003c\/p\u003e \u003cp\u003eReferences 291\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart VI Leverage Buyout (LBO) Models 293\u003cbr\u003e \u003c\/b\u003e\u003ci\u003eJan Viebig, Daniel Stillit and Thorsten Poddig\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e29 Introduction 295\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e30 Leveraged Buyouts 297\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e31 IRRs and the Structure of LBO Models 301\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e32 Assumptions of LBO Models 307\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e33 Example: Continental AG 317\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e33.1 Background 317\u003c\/p\u003e \u003cp\u003e33.2 LBO modeling approach – appropriate level of detail 318\u003c\/p\u003e \u003cp\u003e33.3 Key LBO parameters 318\u003c\/p\u003e \u003cp\u003e33.4 Step-by-step walk through the model 320\u003c\/p\u003e \u003cp\u003e\u003cb\u003e34 A Word of Caution 329\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eReferences 333\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart VII Valuation 101: Approaches and Alternatives 335\u003cbr\u003e \u003c\/b\u003e\u003ci\u003eAswath Damodaran\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e35 Introduction 337\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e36 Overview of Valuation 339\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e37 Discounted Cash Flow Valuation 341\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e37.1 Essence of discounted cashflow valuation 341\u003c\/p\u003e \u003cp\u003e37.2 Discount rate adjustment models 341\u003c\/p\u003e \u003cp\u003e37.2.1 Equity DCF models 343\u003c\/p\u003e \u003cp\u003e37.2.2 Firm DCF models 344\u003c\/p\u003e \u003cp\u003e37.3 Certainty equivalent models 345\u003c\/p\u003e \u003cp\u003e37.4 Excess return models 346\u003c\/p\u003e \u003cp\u003e37.5 Adjusted present value models 346\u003c\/p\u003e \u003cp\u003e37.6 Value enhancement in the DCF world 347\u003c\/p\u003e \u003cp\u003e37.6.1 Determinants of value 347\u003c\/p\u003e \u003cp\u003e37.6.2 Ways of increasing value 349\u003c\/p\u003e \u003cp\u003e\u003cb\u003e38 Liquidation and Accounting Valuation 355\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e38.1 Book value-based valuation 355\u003c\/p\u003e \u003cp\u003e38.1.1 Book value 356\u003c\/p\u003e \u003cp\u003e38.1.2 Book value plus earnings 356\u003c\/p\u003e \u003cp\u003e38.1.3 Fair value accounting 357\u003c\/p\u003e \u003cp\u003e38.2 Liquidation valuation 358\u003c\/p\u003e \u003cp\u003e38.3 Value enhancement in the accounting world 358\u003c\/p\u003e \u003cp\u003e\u003cb\u003e39 Relative Valuation 361\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e39.1 Steps in relative valuation 361\u003c\/p\u003e \u003cp\u003e39.2 Basis for approach 361\u003c\/p\u003e \u003cp\u003e39.3 Standardized values and multiples 362\u003c\/p\u003e \u003cp\u003e39.4 Determinants of multiples 363\u003c\/p\u003e \u003cp\u003e39.5 Comparable firms 365\u003c\/p\u003e \u003cp\u003e39.6 Controlling for differences across firms 365\u003c\/p\u003e \u003cp\u003e39.7 Value enhancement in the relative valuation world 366\u003c\/p\u003e \u003cp\u003e\u003cb\u003e40 Real Option Valuation 369\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e40.1 Basis for approach 369\u003c\/p\u003e \u003cp\u003e40.2 The essence of real options 370\u003c\/p\u003e \u003cp\u003e40.3 Examples of real options 371\u003c\/p\u003e \u003cp\u003e40.4 Value enhancement in the real options world 372\u003c\/p\u003e \u003cp\u003e\u003cb\u003e41 Closing Thoughts on Value Enhancement 375\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eReferences 377\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart VIII Final Thoughts on Valuation 379\u003cbr\u003e \u003c\/b\u003e\u003ci\u003eArmin Varmaz, Thorsten Poddig and Jan Viebig\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e42 Introduction 381\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e43 Valuation in Theory: The Valuation of a Single Asset 383\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e43.1 Certain cash flows 383\u003c\/p\u003e \u003cp\u003e43.2 Uncertain cash flows 384\u003c\/p\u003e \u003cp\u003e43.3 Risk premia 386\u003c\/p\u003e \u003cp\u003e43.4 Certainty equivalents and utility-based valuation 388\u003c\/p\u003e \u003cp\u003e43.5 Risk neutral probabilities 391\u003c\/p\u003e \u003cp\u003e\u003cb\u003e44 Outlook: The Multi-asset Valuation and Allocation Case 395\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e45 Summary 399\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eReferences 401\u003c\/p\u003e \u003cp\u003eIndex 403\u003c\/p\u003e  \u003cb\u003eJan Viebig\u003c\/b\u003e, CFA, is a Managing Director at DWS Investment GmbH in Frankfurt, Germany, where he manages two long \/ short equity hedge funds. With EUR 142 billion under management, DWS is the largest asset manager in Germany. DWS is part of Deutsche Asset Management (DeAM). Jan holds a Diploma and a PhD degree in Business Administration from the University of the Armed Forces in Munich and a Master of International Management (Post-MBA) degree from Thunderbird, School of Global Management. He is a lecturer at the University of Bremen. His research interests are in the field of hedge funds and equity valuation.  \u003cp\u003e\u003cb\u003eThorsten Poddig\u003c\/b\u003e has studied business administration, economics, and computer sciences. He received his PhD degree at the University of Bamberg. His work on concepts in Artificial Intelligence and its application to decision theory and decision making in business administration was followed by analyzing, modeling and forecasting financial markets with neural networks at the University of Freiburg.  Since 1996, he has been Professor of Business Administration and Finance at the University of Bremen. His research interests cover all aspects of asset management, including financial market modeling and forecasting, portfolio optimization and asset allocation, equity valuation, capital market theory and empirical finance.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eArmin Varmaz\u003c\/b\u003e studied business administration and economics. In his PhD thesis he analyzed the profitability, the competition and the efficiency in the German banking sector, using panel data approaches and data envelopment analysis. Since 2006 he has been a post-doctoral research fellow at the University of Bremen. His main interests and research experience include valuation theory, optimization in economics and empirical finance. He is currently working on advanced quantitative methods for analyzing, modeling and simulating long-term developments in financial markets.\u003c\/p\u003e  \u003ci\u003eEquity Valuation: Models from Leading Investment Banks\u003c\/i\u003e is a clear and reader-friendly guide to how today’s leading investment banks analyze firms. Editors Jan Viebig, Thorsten Poddig and Armin Varmaz bring together expertise from Morgan Stanley, UBS, Credit Suisse, Goldman Sachs and DWS Investment GmbH, 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:  \u003cul\u003e \u003cli\u003eestimate cash flows\u003c\/li\u003e \u003cli\u003ecalculate discount rates\u003c\/li\u003e \u003cli\u003eadjust for accounting distortions\u003c\/li\u003e \u003cli\u003etake uncertainty into consideration\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eWritten for investment professionals, corporate managers, students and anyone interested in developing their understanding of this key area, \u003ci\u003eEquity Valuation: Models from Leading Investment Banks\u003c\/i\u003e will arm readers with the latest thinking and depth of knowledge necessary to make the right decisions in their valuation methodologies.\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47989152940261,"sku":"NP9780470031490","price":141.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9780470031490.jpg?v=1761783010","url":"https:\/\/k12savings.com\/es\/products\/equity-valuation-isbn-9780470031490","provider":"K12savings","version":"1.0","type":"link"}