DCF Fair Value Valuation, Excessive Assetes and Hidden Inefficiencies

Guidelines on Share Valuation: How Fair is Fair Value?

The Indian capital market has shown signs of buoyancy and dynamism in the recent past. There is a very real need, therefore, to nurture and to give positive direction to the emerging trends in this sphere of economic activity. It is in this context that regulatory agencies have a critical role in providing the right kind of support to avoid bunching of issues as well as in protecting investors ...

Developing a Paradigm for Fair Valuation in Tehran Stock Exchange

The concept of value is of great importance for investors. The goal of different groups of investors is always to maximize the value of their capital. The aim of this research is developing factors effective on securities in capital market in order to develop a paradigm for fair valuation that leads investors to make better decisions. To study fair value in a precise and comprehensive way, effe...

Influence of Stock Compensation Valuation on Firms’ Performances: Par Value vs Fair Value

The FASB has converged SFAS 123R with IFRS No.2, which simultaneously defines that the value of stock compensation is an expense under fair value method that must be recognized in the current statement of operations. However, under the fair value method, volatility of the market value of stock is easily subjected to the business cycle, political condition, managerial behavior, and macroeconomic...

Real Options Analysis versus Traditional DCF Valuation in Layman’s Terms

Fair Value Accounting for Liabilities and Own Credit Risk

Changes in credit risk may arise when either the value or the risk of corporate assets changes. Changes in the equity value associated with the changes in the asset value and changes in asset risk can be characterized into potentially countervailing direct and indirect effects. The indirect effect of risk on equity value is a function of factors that affect the debt value of including leverage,...