This paper provides guidelines to evaluate the appropriateness of 23 different valuation methods for estimating the present value of tax shields. We first show that the value of tax shields is the difference between the present values of two different cash flows with their own risks: the present...

The average Equity Premium or Market Risk Premium (MRP) used in 2011 by professors for the USA (5.7%) is higher than the one used by analysts (5.0%) and companies (5.6%). The standard deviation of the MRP used in 2011 by analysts (1.1%) is lower than the ones of companies (2.0%) and professors...

We look at the Risk-Free Rate (RF) and the Market Risk Premium (MRP) used by analysts in 2015 to value companies of six countries. The dispersion of both, the RF and the MRP used, is huge, and the most unexpected result is that the dispersion is higher for the RF than for the MRP.We also find...

The average Market Risk Premium (MRP) used in 2011 by professors for the USA (5.7%) is higher than the one used by analysts (5.0%) and companies (5.6%). The standard deviation of the MRP used in 2011 by analysts (1.1%) is lower than the ones of companies (2.0%) and professors (1.6%). Most...

The average MRP used by analysts in the USA (5.1%) was similar to the one used by their colleagues in Europe (5.0%). But the average MRP used by companies in the USA (5.3%) was smaller than the one used by companies in Europe (5.7%), and UK (5.6%).The dispersion of the MRP used was high, but...

We compute the Shareholder Value Creation of Santander, BBVA, Popular and Bankinter between 1991 and 2010. The shareholder value creation during this period was: Santander -24 billion euros; BBVA -22; Popular 1.6 and Bankinter 0.6.The average shareholder return was: Santander 12.7%; BBVA 11.5%;...

We rank the 64 companies operating in 2010 in the Pension Fund Industry in Spain using data from 1990 to 2010 for the existing individual mutual funds. The best companies according to the ranking were Bestinver, Mutua Madrilena and Merchbanc. The worst, according to the ranking, were Caja...

We rank the 79 companies operating in 2010 in the Mutual Fund Industry in Spain using data from 1991 to 2010 for the 2,285 existing mutual funds with more than a year of history. The best companies according to the ranking were: Bestinver, Profit and Metagestion. The worst, according to the...

The market cap of Telefonica increased between December 1991 and December 2010 in 70.6 billion euros. The shareholder value creation during this period was 34.2 billion euros. The average shareholder return of Telefonica in this 19 years was 15.2%, higher than that of the IBEX 35 (11.0%). We...