We compute the Shareholder Value Creation of Banco Santander (SAN). The market cap of BS increased between December 1991 and December 2005 in 85.7 billion euros. The shareholder value creation during this period was 20.7 billion euros. The average shareholder return of BS in this 15-year period...

We compute the Shareholder Value Creation of Endesa. The market cap of Endesa increased between December 1991 and December 2006 in 33,403 million euros. The shareholder value creation during this period was 29,892 million euros. The average shareholder return of Endesa in this 15 years was...

In this note we discuss four common methods of valuing firms:1.Discounting operating free cash flow at the weighted average cost of capital.2.Discounting equity free cash flow at the cost of equity.3.Valuing the firm using adjusted present value.4.Discounting the capital cash flow at the...

We compute the Shareholder Value Creation of Iberdrola. The market cap of Iberdrola increased between December 1991 and December 2005 in 17,279 million euros. The shareholder value creation during this period was 14,424 million euros. The average shareholder return of Iberdrola in this 14 years...

We compute the Shareholder Value Creation of Endesa. The market cap of Endesa increased between December 1991 and December 2005 in 18,994 million euros. The shareholder value creation during this period was 13,090 million euros. The average shareholder return of Endesa in this 14 years was...

We compute the Shareholder Value Creation of Banco Santander (BS). The market cap of BS increased between December 1991 and December 2005 in 67,070 million euros. The shareholder value creation during this period was 4,158 million euros. The average shareholder return of BS in this 14 years was...

The market cap of Telefonica increased between December 1991 and December 2005 in 55,695 million euros. The shareholder value creation during this period was 12.442 million euros. The average shareholder return of Telefonica in this 14 years was 16.8%, higher than that of the IBEX 35 (13.7%). We...

Despite the recent growth of inflation linked derivatives market, the publicly available literature is very small. The various macro econometrics models are helpless when it comes to pricing inflation derivatives. The only freely accessible model, the Jarrow and Yildirim [4], relies on non...

In the latest edition of Principles of Corporate Finance (Brealey, Myers and Allen, 2006) the authors use a finite cash flow example to illustrate the valuation procedure for using the Discounted Cash Flow (DCF) method with the free cash flow (FCL) and the Adjusted Present Value (APV). The two...

In the latest edition of Principles of Corporate Finance (Brealey, Myers and Allen, 2006) the authors use a finite cash flow example to illustrate the valuation procedure for using the Discounted Cash Flow (DCF) method with the free cash flow (FCF) and the Adjusted Present Value (APV). The two...