Contents

CHAPTER 1 Introduction to Valuation

A Philosophical Basis for Valuation

Generalities about Valuation

The Role of Valuation

Conclusion

Questions and Short Problems

CHAPTER 2 Approaches to Valuation

Discounted Cash Flow Valuation

Relative Valuation

Contingent Claim Valuation

Conclusion

Questions and Short Problems

CHAPTER 3 Understanding Financial Statements

The Basic Accounting Statements

Asset Measurement and Valuation

Measuring Financing Mix

Measuring Earnings and Profitability

Measuring Risk

Other Issues in Analyzing Financial Statements

Conclusion

Questions and Short Problems

CHAPTER 4 The Basics of Risk

What is Risk?

Equity Risk and Expected Return

Alternative Models for Equity Risk

A Comparative Analysis of Equity Risk Models

Models of Default Risk

Conclusion

Questions and Short Problems

CHAPTER 5 Option Pricing Theory and Models

Basics of Option Pricing

Determinants of Option Value

Option Pricing Models

Extensions of Option Pricing

Conclusion

Questions and Short Problems

CHAPTER 6 Market Efficiency—Definition, Tests, and Evidence

Market Efficiency and Investment Valuation

What Is an Efficient Market?

Implications of Market Efficiency

Necessary Conditions for Market Efficiency

Propositions about Market Efficiency

Testing Market Efficiency

Cardinal Sins in Testing Market Efficiency

Some Lesser Sins That Can Be a Problem

Evidence on Market Efficiency

Time Series Properties of Price Changes

Market Reaction to Information Events

Market Anomalies

Evidence on Insiders ...

Get Investment Valuation: Tools and Techniques for Determining the Value of Any Asset, Third Edition now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.