Stochastic Discounted Cash Flow A Theory of the Valuation of Firms
Kruschwitz, Lutz
Stochastic Discounted Cash Flow A Theory of the Valuation of Firms - Cham Springer Nature 2020 - 1 electronic resource (241 p.) - Springer Texts in Business and Economics .
Open Access
This open access book discusses firm valuation, which is of interest to economists, particularly those working in finance. Firm valuation comes down to the calculation of the discounted cash flow, often only referred to by its abbreviation, DCF. There are, however, different coexistent versions, which seem to compete against each other, such as entity approaches and equity approaches. Acronyms are often used, such as APV (adjusted present value) or WACC (weighted average cost of capital), two concepts classified as entity approaches. This book explains why there are several procedures and whether they lead to the same result. It also examines the economic differences between the methods and indicates the various purposes they serve. Further it describes the limits of the procedures and the situations they are best applied to. The problems this book addresses are relevant to theoreticians and practitioners alike.
Creative Commons
English
978-3-030-37081-7 9783030370817
10.1007/978-3-030-37081-7 doi
Business mathematics & systems
Investment & securities
Macroeconomics
Accounting Adjusted present value Asset pricing Audit Cash flows Cost of capital Discounted cash flow Equity and debt Finance Financing Firm valuation Flow to equity Insolvency and valuation Investment investments and securities Leverage Taxation Total cash flow Weighted average cost of capital
Stochastic Discounted Cash Flow A Theory of the Valuation of Firms - Cham Springer Nature 2020 - 1 electronic resource (241 p.) - Springer Texts in Business and Economics .
Open Access
This open access book discusses firm valuation, which is of interest to economists, particularly those working in finance. Firm valuation comes down to the calculation of the discounted cash flow, often only referred to by its abbreviation, DCF. There are, however, different coexistent versions, which seem to compete against each other, such as entity approaches and equity approaches. Acronyms are often used, such as APV (adjusted present value) or WACC (weighted average cost of capital), two concepts classified as entity approaches. This book explains why there are several procedures and whether they lead to the same result. It also examines the economic differences between the methods and indicates the various purposes they serve. Further it describes the limits of the procedures and the situations they are best applied to. The problems this book addresses are relevant to theoreticians and practitioners alike.
Creative Commons
English
978-3-030-37081-7 9783030370817
10.1007/978-3-030-37081-7 doi
Business mathematics & systems
Investment & securities
Macroeconomics
Accounting Adjusted present value Asset pricing Audit Cash flows Cost of capital Discounted cash flow Equity and debt Finance Financing Firm valuation Flow to equity Insolvency and valuation Investment investments and securities Leverage Taxation Total cash flow Weighted average cost of capital