{"product_id":"equity-valuation-risk-and-investment-9780470226407","title":"Equity Valuation Risk and Investment","description":"\u003cb\u003eBook Synopsis\u003c\/b\u003e\u003cbr\u003eAuthor Peter Stimes's analysis of the investment process has long been inspired by some of the best minds in the world of finance, yet some of the ways in which he approaches this discipline are truly unique.\u003cbr\u003e\u003cbr\u003e\u003cb\u003eTable of Contents\u003c\/b\u003e\u003cbr\u003eForeword.  \u003cp\u003ePreface.\u003c\/p\u003e \u003cp\u003eAbout the Author.\u003c\/p\u003e \u003cp\u003eChapter 1. Introduction.\u003c\/p\u003e \u003cp\u003eTheoretical Precision or Theoretical Resilience?\u003c\/p\u003e \u003cp\u003ePractical Difficulties as Well.\u003c\/p\u003e \u003cp\u003eOverview of Our Analysis.\u003c\/p\u003e \u003cp\u003eChapter 2. Inflation Protected Bonds as a Valuation Template.\u003c\/p\u003e \u003cp\u003eThe Formulas Behind the Intuition.\u003c\/p\u003e \u003cp\u003eTIPS versus Traditional Fixed-Rate Bonds – Measuring the Differences.\u003c\/p\u003e \u003cp\u003eA Peek Ahead.\u003c\/p\u003e \u003cp\u003eChapter 3. Valuing Uncertain, Perpetual Income Streams.\u003c\/p\u003e \u003cp\u003eThe Mathematical Development of Un-leveraged Firm Valuation.\u003c\/p\u003e \u003cp\u003eWhat Does the Valuation Formula Tell Us About Sensitivity to Inflation?\u003c\/p\u003e \u003cp\u003eSensitivity to Real Discount Rates and Growth Factors.\u003c\/p\u003e \u003cp\u003eThe Comparison with a Traditional Model of Firm Valuation.\u003c\/p\u003e \u003cp\u003eChapter 4. Valuing a Leveraged Equity Security.\u003c\/p\u003e \u003cp\u003eLeverage in the Presence of Corporate Income Taxes.\u003c\/p\u003e \u003cp\u003eFrom Theory to Practice – Valuing an Enterprise When the Discount Rates are Known\u003c\/p\u003e \u003cp\u003eFrom Theory to Practice Part II – \"Reverse Engineering\" or Inferring Discount Rates from Observed Market Prices.\u003c\/p\u003e \u003cp\u003eChapter 4 Supplement: The Relationship between the Leveraged Equity Discount Rate and the Debt to Capital Ratio for Highly Leveraged Companies.\u003c\/p\u003e \u003cp\u003eChapter 5. Case Studies in Valuation during the Recent Decade.\u003c\/p\u003e \u003cp\u003eCase 1: Coca-Cola (\"KO\").\u003c\/p\u003e \u003cp\u003eCase 2: Intel (\"INTC\").\u003c\/p\u003e \u003cp\u003eCase 3: Procter \u0026amp; Gamble (\"PG\").\u003c\/p\u003e \u003cp\u003eCase 4: Enron (\"ENE\").\u003c\/p\u003e \u003cp\u003eTying Up the Package:  The Practical Lessons from All Four Cases.\u003c\/p\u003e \u003cp\u003eChapter 6. The Treatment of Mergers and Acquisitions.\u003c\/p\u003e \u003cp\u003eGeneralizing from the P\u0026amp;G\/Gillette Example.\u003c\/p\u003e \u003cp\u003eApplicability of the Results under Alternate Merger Terms.\u003c\/p\u003e \u003cp\u003eAnalytical Postscript 1: Common Stock Buybacks and Issuances Outside the Merger Framework.\u003c\/p\u003e \u003cp\u003eAnalytical Postscript 2: A Brief Word on Executive Stock Option Grants.\u003c\/p\u003e \u003cp\u003eChapter 7. A Fair Representation? Broad Sample Testing Over a Ten-Year Market Cycle.\u003c\/p\u003e \u003cp\u003eSample Descriptive Data.\u003c\/p\u003e \u003cp\u003eThe Basic Valuation Results.\u003c\/p\u003e \u003cp\u003ePredictive Strength of the Model, the Whole Period.\u003c\/p\u003e \u003cp\u003ePredictive Strength of the Model, Sub-Periods.\u003c\/p\u003e \u003cp\u003eChapter 8. Price Volatility and Underlying Causes.\u003c\/p\u003e \u003cp\u003eDeriving the Formula for Price Changes.\u003c\/p\u003e \u003cp\u003eTranslating the Price Change Formula into Volatility Estimates.\u003c\/p\u003e \u003cp\u003eDigression: The Impact of Debt Leverage on Equity Volatility.\u003c\/p\u003e \u003cp\u003eObtaining the Volatility of the Underlying Variables.\u003c\/p\u003e \u003cp\u003eChapter 9. Constructing Efficient Portfolios.\u003c\/p\u003e \u003cp\u003eExtracting Expected Equity Returns from Observed Price\/Earnings Ratios – Part I.\u003c\/p\u003e \u003cp\u003eExtracting Expected Equity Returns from Observed Price\/Earnings Ratios – Part II.\u003c\/p\u003e \u003cp\u003eExtracting Expected Equity Returns from Observed Price\/Earnings Ratios – Part III.\u003c\/p\u003e \u003cp\u003eCreating Efficient Portfolios – The Unconstrained Case.\u003c\/p\u003e \u003cp\u003eCreating Efficient Portfolios – The Case Where Asset Weights Are Required To Be Non-Negative.\u003c\/p\u003e \u003cp\u003eComputing the Variance\/Covariance Matrix Inputs.\u003c\/p\u003e \u003cp\u003eChapter 10. Selecting among Efficient Portfolios; Making Dynamic Rebalancing Adjustments.\u003c\/p\u003e \u003cp\u003eReconciling Portfolio Desirability and Feasibility.\u003c\/p\u003e \u003cp\u003eTurning Theory into Easily Calculated Results.\u003c\/p\u003e \u003cp\u003eAdjusting for Changes in Long-Term Expected Returns on Common Equity.\u003c\/p\u003e \u003cp\u003eAdjusting for More General Changes in Risk-Adjusted Expected Returns.\u003c\/p\u003e \u003cp\u003eRecapitulation and an Important Caveat.\u003c\/p\u003e \u003cp\u003eChapter 11. How Did We Arrive Here Historically? Where Might We Go Prospectively?\u003c\/p\u003e \u003cp\u003eThe Next Crises of Confidence.\u003c\/p\u003e \u003cp\u003eSome Answers Begin to Emerge.\u003c\/p\u003e \u003cp\u003eWhat if Everyone Followed this Type of Model and Investing?\u003c\/p\u003e \u003cp\u003eThe Next Steps.\u003c\/p\u003e \u003cp\u003eAppendix A. Mathematical Review of Growth Rates for Earnings, Dividends, and Book Value per Share.\u003c\/p\u003e \u003cp\u003eConstant Growth Rate Characterization.\u003c\/p\u003e \u003cp\u003eTransition from One Long-Term Growth Rate to Another.\u003c\/p\u003e \u003cp\u003eFocus on Share Growth Impacts.\u003c\/p\u003e \u003cp\u003eAppendix B. Sustainable and Non-Sustainable Inflation Rates.\u003c\/p\u003e \u003cp\u003eThe Impact of Monetary Policy and Interest Rates on Price Level Changes.\u003c\/p\u003e \u003cp\u003eThe Impact of \"Real Shocks\" on Measured Price Level Changes.\u003c\/p\u003e \u003cp\u003eDrawing Correct Inferences.\u003c\/p\u003e \u003cp\u003eAppendix C. Deriving the \"Equity Duration\" Formula.\u003c\/p\u003e \u003cp\u003eAppendix D. The Traditional Growth\/Equity Valuation Formula.\u003c\/p\u003e \u003cp\u003eAppendix E. Adjustments Required to the Traditional Growth\/Equity Valuation Formula in Order to Preserve Inflation Neutrality.\u003c\/p\u003e \u003cp\u003eAppendix F. Brief Recapitulation of the Miller 1977 Capital Structure Irrelevance Theorem.\u003c\/p\u003e \u003cp\u003eAppendix G. Time Series Charts of Un-leveraged, Inflation Adjusted Discount Rate Estimates.\u003c\/p\u003e \u003cp\u003eAppendix H. Comparison of Volatility of Pre-Tax and After-Tax Income.\u003c\/p\u003e \u003cp\u003eAppendix I. Relationship between Observed P\/E Ratios and Nominal Interest Rates.\u003c\/p\u003e \u003cp\u003eAppendix J. Additional Background on Mathematical Optimization Subject to Constraint Conditions.\u003c\/p\u003e \u003cp\u003eAppendix K. Derivation of Asset Class Covariances.\u003c\/p\u003e \u003cp\u003eAppendix L. Expected Return and Variance\/Covariance Inputs Underlying Chapter 9 and Chapter 10 Portfolio Examples.\u003c\/p\u003e \u003cp\u003eBibliography.\u003c\/p\u003e \u003cp\u003eIndex.\u003c\/p\u003e","brand":"John Wiley \u0026 Sons Inc","offers":[{"title":"Default Title","offer_id":49525368193367,"sku":"9780470226407","price":61.75,"currency_code":"GBP","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0817\/1739\/5799\/files\/9780470226407.jpg?v=1731860254","url":"https:\/\/bookcurl.com\/products\/equity-valuation-risk-and-investment-9780470226407","provider":"Book Curl","version":"1.0","type":"link"}