![Equity Asset Valuation](https://img.perlego.com/book-covers/1353522/9781119628194_300_450.webp)
Equity Asset Valuation
Jerald E. Pinto
- English
- ePUB (mobile friendly)
- Available on iOS & Android
Equity Asset Valuation
Jerald E. Pinto
About This Book
Navigate equity investments and asset valuation with confidence Equity Asset Valuation, Fourth Edition blends theory and practice to paint an accurate, informative picture of the equity asset world. The most comprehensive resource on the market, this text supplements your studies for the third step in the three-level CFA certification program by integrating both accounting and finance concepts to explore a collection of valuation models and challenge you to determine which models are most appropriate for certain companies and circumstances. Detailed learning outcome statements help you navigate your way through the content, which covers a wide range of topics, including how an analyst approaches the equity valuation process, the basic DDM, the derivation of the required rate of return within the context of Markowitz and Sharpe's modern portfolio theory, and more.
Frequently asked questions
CHAPTER 1
Overview of Equity Securities
Learning Outcomes
- describe characteristics of types of equity securities;
- describe differences in voting rights and other ownership characteristics among different equity classes;
- distinguish between public and private equity securities;
- describe methods for investing in non-domestic equity securities;
- compare the risk and return characteristics of different types of equity securities;
- explain the role of equity securities in the financing of a companyâs assets;
- distinguish between the market value and book value of equity securities;
- compare a companyâs cost of equity, its (accounting) return on equity, and investorsâ required rates of return.
1. Introduction
- What distinguishes common shares from preference shares, and what purposes do these securities serve in financing a companyâs operations?
- What are convertible preference shares, and why are they often used to raise equity for unseasoned or highly risky companies?
- What are private equity securities, and how do they differ from public equity securities?
- What are depository receipts and their various types, and what is the rationale for investing in them?
- What are the risk factors involved in investing in equity securities?
- How do equity securities create company value?
- What is the relationship between a companyâs cost of equity, its return on equity, and investorsâ required rate of return?
2. Equity Securities in Global Financial Markets
![The figure shows two different pie charts. The pie chart on the top illustrates the contributions of selected countries and geographic regions to global gross domestic product (GDP) 2017. The regions are USA with 25%, Japan with 6%, UK with 4%, France with 3%, Germany with 5%, China with 15%, Canada with 2%, Switzerland with 1%, Australia with 2%, Smaller Yearbook with 9%, and Other with 28%.The pie chart at the bottom illustrates the contributions of selected countries and geographic regions to global equity market capitalization. The regions are USA with 51%, Japan with 9%, UK with 6%, France with 3%, Germany with 3%, China with 3%, Canada with 3%, Switzerland with 3%, Australia with 2%, Smaller Yearbook with 7%, and Other with 9%.](https://book-extracts.perlego.com/1353522/images/c01_29549-plgo-compressed.webp)
Table of contents
- Cover
- Series
- Title Page
- Copyright
- Preface
- Acknowledgments
- About the CFA Institute Investment Series
- Chapter 1 Overview of Equity Securities
- Chapter 2 Introduction to Industry and Company Analysis
- Chapter 3 Equity Valuation: Concepts and Basic Tools
- Chapter 4 Equity Valuation: Applications and Processes
- Chapter 5 Return Concepts
- Chapter 6 Industry and Company Analysis
- Chapter 7 Discounted Dividend Valuation
- Chapter 8 Free Cash Flow Valuation
- Chapter 9 Market-Based Valuation: Price and Enterprise Value Multiples
- Chapter 10 Residual Income Valuation
- Chapter 11 Private Company Valuation
- Glossary
- About the Editors
- About the CFA Program
- Index
- End User License Agreement