Principles of Cash Flow Valuation: An Integrated Market-Based Approach

ISBN-13: 9780126860405 / Angielski / Twarda / 2004 / 350 str.

Joseph Tham; Ignacio Vilez-Pareja; Ignacio Vlez-Pareja

Opis

Principles of Cash Flow Valuation is the only book available that focuses exclusively on cash flow valuation. This text provides a comprehensive and practical, market-based framework for the valuation of finite cash flows derived from a set of integrated financial statements, namely, the income statement, balance sheet, and cash budget. The authors have distilled the essence of years of gathering academic wisdom in the study of cash flow analysis and the cost of capital. Their work should go a long way toward bridging the gap between the application of cost benefit analysis and the theory of capital budgeting. This book covers the basic concepts in market-based cash flow valuation. Topics include the tme value of money (TVM) and an introduction to cost of capital; basic review of financial statements and accounting concepts; construction of integrated pro-forma financial statements; derivation of free cash flows; use of the WACC in theory and in practice; estimating the WACC for non traded firms; calculating the terminal value beyond the planning period. It also revisits the theory for cost of capital and explains how cash flows are valued in reality. The ideas are illustrated using examples and a case study. The presentation is appropriate for a range of technical backgrounds. This text will be of interest to finance professionals as well as MBA and other graduate students in finance.

* Provides the only exclusive treatment of cash flow valuation
* Authors use examples and a case study to illustrate ideas
* Presentation appropriate for a range of technical backgrounds: ideas are presented clearly, full exposition is also provided
* Named among the Top 10 financial engineering titles by Financial Engineering News

Recenzje

"The book goes a long way towards bridging the gap between the application of cost benefit analysis and the theory of capital budgeting. The authors have distilled the essence of years of gathering academic wisdom in the study of cash flow analysis and the cost of capital and presented it in a manner that is of immediate benefit both to the student and the practitioner in the field." --Savvakis C. Savvides, Cyprus Development Bank. "The book by Tham and Velez-Pareja is a very modern approach to valuation theory. The author's focus is not the pure theory of valuation but rather they present a book full of useful hints and tips that will please the practician. Tham and Velez-Pareja in particular stress the importance of financial statements and their use in valuation. Many detailed examples make it easy not only to understand but also to apply valuation theory." --Professor Dr. Dr. Andreas Löffler,Lehrstuhl für Banken und Finanzierung, Universität Hannover "This is an elegant and insightful exposition of the principles and techniques involved in valuation of cash flows. The issues related to construction of cash flows and estimation of cost of capital under different scenarios that are vital to the valuation of firms and investments, are dealt with in a careful and straightforward fashion. The arguments are made in a clear and animated fashion and the presentation style is an interesting blend of rigorous analysis and simple illustrations. An essential reading for any one interested in understanding the issues associated with cash flow valuation and it should prove equally valuable to both scholars and practitioners." --Gangadhar P Shukla, Professor of Public Policy, Duke UniversityOne of the Top Ten financial engineering titles published in 2003-2004 - Richard Norgate, Ph.D., Financial Engineering News

Spis treści

Basic concepts in market-based cash flow valuation; Time value of money (TVM) and introduction to cost of capital; Basic review of financial statements and accounting concepts; Constructing integrated pro-forma financial statements; Derivation of the free cash flows; Using the WACC in theory and in practice; Estimating the WACC for non traded firms; Beyond the planning period: calculating the terminal value; Theory for cost of capital revisited;How are Cash Flows Valued in Reality?