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Price to Earnings Ratio, Value to Book Ratio and Growth
Fernandez, Pablo - 2019
The PER is the most commonly used parameter in the stock market. The PER is the result of dividing the equity market value by the company's profit after tax.The PER depends on a number of factors, some of which are out of the company's control, such as variations in interest rates, and others...
Persistent link: https://www.econbiz.de/10012905422
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The Market Portfolio is NOT Efficient : Evidences, Consequences and Easy to Avoid Errors
Fernandez, Pablo - 2019
The Market Portfolio is not an efficient portfolio. There are many evidences that tell us that: the equal weighted indexes have beaten their market-value weighted indexes for many years, many easy-to-build portfolios (some “smart-beta”, “multifactors”) have beaten market-value weighted...
Persistent link: https://www.econbiz.de/10012903557
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CAPM : The Model and 307 Comments About It
Fernandez, Pablo - 2019
about the CAPM: 234 basically agree in using the adjective “absurd” to qualify the CAPM and 71 do not agree for several …) their opinions: real opinions of real persons that know finance and have thought about the CAPM, the market return, the beta …
Persistent link: https://www.econbiz.de/10012904629
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CAPM : An Absurd Model
Fernandez, Pablo - 2019
The CAPM is about expected return. If you find a formula for expected returns that works well in the real markets …, would you publish it? Before or after becoming a billionaire?The CAPM is an absurd model because its assumptions and its … predictions/conclusions have no basis in the real world. The use of CAPM is also a source of litigation: many professors, lawyers …
Persistent link: https://www.econbiz.de/10012904691
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WACC and CAPM According to Utilities Regulators : Confusions, Errors and Inconsistencies
Fernandez, Pablo - 2019
CAPM and the WACC), several inconsistencies estimating parameters and multiply the WACC by the depreciated book value of …
Persistent link: https://www.econbiz.de/10012893723
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IBEX 35 : 1991-2010 - Value Creation and Return
Fernandez, Pablo - 2011
We compute the shareholder value creation and the return of the companies in the IBEX 35 for the 19-year period 1991-201'3 The average return was 11%, but 2.9% was due to the decline in interest rates (from 13% to 5.5%). The shareholder value creation in the whole period was 23 billion euros,...
Persistent link: https://www.econbiz.de/10013131614
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Discount Rate (Risk-Free Rate and Market Risk Premium) Used for 41 Countries in 2017 : A Survey
Fernandez, Pablo - 2017
This paper contains the statistics of a survey about the Risk-Free Rate (RF) and the Market Risk Premium (MRP) used in 2017 for 41 countries. We got answers for 68 countries, but we only report the results for 41 countries with more than 25 answers. The average (RF) used in 2017 was smaller than...
Persistent link: https://www.econbiz.de/10012958524
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Value of Tax Shields (VTS) : 3 Theories with 'Some' Sense
Fernandez, Pablo - 2019
The value of tax shields (VTS) defines the increase in the company's value as a result of the tax saving obtained by the payment of interest. However, there is no consensus in the existing literature regarding the correct way to compute the VTS. Most authors think of calculating the VTS in terms...
Persistent link: https://www.econbiz.de/10012904517
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339 Questions on Valuation and Finance
Fernandez, Pablo - 2019
The document starts with 100 questions that students, alumni and other persons (judges, arbitrageurs, clients…) have posed to me over the past years. They were recompiled so as to help the reader remember, clarify and, in some cases, discuss some useful concepts in finance. Most of the...
Persistent link: https://www.econbiz.de/10012905134
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1,959 Valuations of the YPF Shares Expropriated to Repsol
Fernandez, Pablo - 2019
On April 16, 2012 the Argentine Federal Government decreed the intervention of YPF. Its share price declined 29% the day after. Two weeks later the Argentinean Parliament approved the expropriation of 51% of the YPF shares owned by Repsol. We prepared a month ago the case “Valuation of an...
Persistent link: https://www.econbiz.de/10012905398