Valuation Based on Required Payback Period

Chapter
Part of the SpringerBriefs in Business book series (BRIEFSBUSINESS)

Abstract

This chapter finds a new valuation method competitive to the DCF method and further derives a series of valuation models based on the new method. These models solve the key valuation issues in absolute valuation ---- can avoid the ZZ growth paradox trouble, and are flexible enough to value individual stocks in stable sectors and in high-growth sectors. These models solve as well the key valuation issues in relative valuation ---- can find the theoretical valuation ratios (P/E, P/B and P/S) effectively, and measure the bubbles of the individual stocks and the overall market. This chapter finally indicates the vast potentials of this brand new valuation method by demonstrating some basic applications.

Keywords

Cash Flow Stock Price Option Price Future Cash Flow Option Price Model 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

References

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Copyright information

© The Author(s) 2013

Authors and Affiliations

  1. 1.Business SchoolRenmin University of ChinaBeijingPeople’s Republic of China

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