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Mid-Year and End-of-Year Conventions in Achieving Convergence Among Discounted Cash Flow Models

Matytskiy, Vasily - 2011

In my paper, I have managed to achieve full convergence of the results of valuation executed by four methods (CCF, APV, DCF and CFE), provided that cash flow is generated throughout the year (Mid-Year Convention). I have shown that convergence among all methods can be achieved whether we use the...

Persistent link: https://www.econbiz.de/10013121618

Stock Return and Cash Flow Predictability : The Role of Volatility Risk

Bollerslev, Tim - 2012

We examine the joint predictability of return and cash flow within a present value framework, by imposing the implications from a long-run risk model incorporating both time varying volatility and volatility uncertainty. We provide new evidence that the expected return variation and the variance...

Persistent link: https://www.econbiz.de/10013097882

Empirische Analyse der Unternehmensbewertung für die Erbschaftsteuer mit dem vereinfachten Ertragswertverfahren (Empirical Analysis of Firm Valuation for Inheritance Tax Purposes Using the Simplified Discounted Cash Flow Method)

Mueller, Jens - 2012

Besides the valuation methods commonly used for specific industries, taxpayers can fall back on the simplified discounted cash flow method which, in certain cases, obliterates the need for complex valuations and replaces what is known as the Stuttgart Method for valuing shares in unlisted...

Persistent link: https://www.econbiz.de/10013100122

How to Ensure Consistency between Discount Rates and Cash Flows?

Cheremushkin, Sergei Vasilievich - 2012

There is a lot of confusion among practitioners about valuing firms and investment projects. At the first sight the discounting procedure is a simple and routine task, which does not involve much effort. But actually even in simple cases accurate valuation requires attention to plenty of...

Persistent link: https://www.econbiz.de/10013102130

Do Analysts Use Their Cash Flows Forecasts When Setting Target Prices?

Hashim, Noor - 2012

This study examines whether analysts' decisions to issue cash flows forecasts depend endogenously on their decision to use these forecasts to set target prices. An endogenous switching regression model, with analyst report regimes of disclosure and non-disclosure of cash flow forecasts, shows...

Persistent link: https://www.econbiz.de/10013104027

Do Stock Prices Move Too Much to Be Justified by Changes in Cash Flows? New Evidence from Parallel Asset Markets

Muhlhofer, Tobias - 2012

We take advantage of two parallel markets for a set of cash flows to show that better cash flow measurement improves the performance of a dividend discount model. Unlike previous literature, we use out-of-sample estimation. We construct a natural laboratory, by using a unique dataset of...

Persistent link: https://www.econbiz.de/10013105191

Conglomerate Discount and Financial Constraints : A Novel View to an Old Puzzle

Bodnaruk, Andriy - 2010

We study the conglomerate discount from a novel perspective. We argue that the discount – measured in terms of Tobin's Q – far from being a sign of lower value is, instead, a sign of higher value for the conglomerate. This can be explained as conglomerates being less financially constrained...

Persistent link: https://www.econbiz.de/10013147072

Valuation of a Cashflow CDO Without Monte Carlo Simulation

Gallagher, Donal A. - 2009

Unlike tranches of synthetic CDOs, that depend only on the defaults of the underlying securities, tranches of cashflow …-)analytic methods exist for pricing synthetic CDO tranches (Hull and White 2004), no equivalent methods exist for pricing cashflow CDO … renders cashflow CDOs amenable to (semi-)analytic pricing. The complication of needing the joint distribution of interest and …

Persistent link: https://www.econbiz.de/10013156360

How Do Managers Move Firm Value? Cash Flows vs. Expected Returns

Eisdorfer, Assaf - 2013

compensation and ownership are high, and in unregulated and heterogeneous industries – cash-flow news becomes significantly more …

Persistent link: https://www.econbiz.de/10013081665

Integrated Risk Management in a Commercial Market-Maker Bank Using the 'Cash Flow at Risk' Approach

Voloshyn, Ihor - 2013

In this article, on the basis of the "cash flow at risk" approach, the system of the integrated (credit, market, operational and liquidity risks) risk management in a market-maker commercial bank is developed. This system guarantees reaching profitability, liquidity and coverage of banking risks...

Persistent link: https://www.econbiz.de/10013088145