Comprehensive Valuation Application Key Features: 1. Supports two of the widely used Valuation Models a. Adjusted Present Value (APV) valuation model b. Weighted Average Cost of Capital (WACC) Valuation model 2. Un-lever and re-lever Beta 3. Cost of Capital using Capital Asset Pricing Model (CAPM) 4. Cost of Capital using WACC Detail: Adjusted Present Value (APV): "Base case” valuation of firm (or project) assuming all-equity financing. Discount rate is Ra. Then, add financing side effects to the "base case" valuation: 1. Interest tax shields (PVTS) 2. Costs of financial distress (PVFD) This app allows flexible FCF timing, cost of asset (Ra) as in all equity case and FCF repetition. Beta: Un-lever asset beta from equity beta, debt beta, leverage (debt/equity), tax rate. Re-lever asset beta with cost of debt, leverage (debt/equity) and tax rate to generate levered equity beta Capital Aset Pricing Model (CAPM): Generate cost of capital from risk free rate, beta and market risk premium (MRP) Weighted Average Cost of Capital (WACC): Weighted average cost of capital is weighted average of the after tax cost of debt and cost of equity WACC - Valuation: Values asset/firm from free cash flow (FCF), discount rate, horizon period (time taken to achive matured growth), terminal value (exit value, comparable, Gordon Growth Model).
Size: 642.95 KB
Price: 6,30 €
Developed by Business Compass LLC
Day of release: 2010-08-25
Recommended age: 4+