Overview
- Presents a clear and concise review of firm valuation techniques
- Includes an overview of the current methods (WACC, APV, TCF, FTE)
- Offers an up-to-date introduction to the theory of discounted cash flow
Part of the book series: Springer Texts in Business and Economics (STBE)
Buy print copy
Tax calculation will be finalised at checkout
About this book
This open access book discusses firm valuation, which is of interest to economists, particularly those working in finance. Firm valuation comes down to the calculation of the discounted cash flow, often only referred to by its abbreviation, DCF. There are, however, different coexistent versions, which seem to compete against each other, such as entity approaches and equity approaches. Acronyms are often used, such as APV (adjusted present value) or WACC (weighted average cost of capital), two concepts classified as entity approaches.
This book explains why there are several procedures and whether they lead to the same result. It also examines the economic differences between the methods and indicates the various purposes they serve. Further it describes the limits of the procedures and the situations they are best applied to. The problems this book addresses are relevant to theoreticians and practitioners alike.
Similar content being viewed by others
Keywords
- Firm valuation
- Cost of capital
- Weighted average cost of capital
- Insolvency and valuation
- Adjusted present value
- Accounting
- Taxation
- Finance
- Audit
- Discounted cash flow
- Cash flows
- Asset pricing
- Equity and debt
- Flow to equity
- Total cash flow
- Financing
- Investment
- Leverage
- Open Access
- investments and securities
Table of contents (7 chapters)
-
Front Matter
-
Back Matter
Authors and Affiliations
About the authors
Lutz Kruschwitz is professor emeritus at the chair of banking and finance, the Free University of Berlin. He graduated in economics from this university. His research interests include investment and valuation theory. He is the author of several bestselling German finance textbooks. He received an honorary doctorate from the University of Tuebingen and is an honorary professor at the University of Vienna.
Andreas Löffler studied Mathematics at the Leipzig University and the Academy of Science in Berlin. He obtained his Ph.D. in Mathematics in 1993 and a second Ph.D. in Economics in 1995 from the University of Leipzig . From 2000 he is a tenured professor at the chair of banking and finance at the University of Hannover. Since 2006 he is the chair of banking and finance at Friedrich Alexander University, Erlangen-Nuremberg. In 2008 he moved to Paderborn as a professor of finance and investment. Since 2011 he holds the chair of finance at the Free University of Berlin.
Bibliographic Information
Book Title: Stochastic Discounted Cash Flow
Book Subtitle: A Theory of the Valuation of Firms
Authors: Lutz Kruschwitz, Andreas Löffler
Series Title: Springer Texts in Business and Economics
DOI: https://doi.org/10.1007/978-3-030-37081-7
Publisher: Springer Cham
eBook Packages: Economics and Finance, Economics and Finance (R0)
Copyright Information: The Editor(s) (if applicable) and The Author(s) 2020
Hardcover ISBN: 978-3-030-37080-0Published: 29 February 2020
Softcover ISBN: 978-3-030-37083-1Published: 18 September 2020
eBook ISBN: 978-3-030-37081-7Published: 28 February 2020
Series ISSN: 2192-4333
Series E-ISSN: 2192-4341
Edition Number: 1
Number of Pages: XXIII, 241
Topics: Macroeconomics/Monetary Economics//Financial Economics, Investments and Securities, Business Mathematics