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DCF and Risk-Neutral Valuation

 

Marketed By :  VDM Verlag Dr. Müller   Sold By :  Kamal Books International  
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Rs. 4,396

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  • Product Description
 

The book illustrates an alternative corporate valuation method to the well known DCF. The limitations and drawbacks of the discounting model and especially of the CAPM question its validity for such an important practice for management as corporate valuation. Being based on the option pricing theory and on the concepts of replication and no arbitrage, risk-neutral valuation uses a completely different approach to account for the risk of a cash flow. In fact, the model applies risk-neutral probabilities to adjust the risky future cash flows of the firm to certainty equivalence. The available literature is reviewed and the two valuation approaches are tested by estimating the value for a sample of five companies and comparing the results to the market capitalisation. By analysing the companies ABB, Bâloise, Novartis, UBS and Valora, the empirical test covers different sectors, sizes and degrees of financial stability.

Product Specifications
SKU :COC69187
AuthorDavide Terrani
LanguageEnglish
BindingPaperback
Number of Pages152
Publishing Year2011-01-09T00:00:00.000
ISBN978-3639318999
Edition1 st
Book TypeEconomics
Country of ManufactureIndia
Product BrandVDM Verlag Dr. Müller
Product Packaging InfoBox
In The Box1 Piece
Product First Available On ClickOnCare.com2015-07-08 00:00:00