
Principles of Cash Flow Valuation
An Integrated Market-Based Approach
- 350 pages
- English
- PDF
- Available on iOS & Android
Principles of Cash Flow Valuation
An Integrated Market-Based Approach
About this book
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
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Table of contents
- Front Cover
- PRINCIPLES OF CASH FLOW VALUATION: An Integrated Market-Based Approach
- Copyright Page
- CONTENTS
- PREFACE
- ABOUT THE AUTHORS
- Chapter 1. Basic Concepts in Market-Based Cash Flow Valuation
- Chapter 2. Time Value of Money and Introduction to Cost of Capital
- Chapter 3. Basic Review of Financial Statements and Accounting Concepts
- Chapter 4. Constructing Integrated Pro-Forma Financial Statements, Part One
- Chapter 5. Constructing Integrated Pro-Forma Financial Statements, Part Two
- Chapter 6. The Derivation of Cash Flows
- Chapter 7. Using the WACC in Theory and Practice
- Chapter 8. Estimating the WACC for Non-Traded Firms
- Chapter 9. Beyond the Planning Period: Calculating the Terminal Value
- Chapter 10. Theory for Cost of Capital Revisited
- Chapter 11. How Are Cash Flows Valued in the Real World
- SELECTED BIBLIOGRAPHY AND REFERENCES
- INDEX