CHAPTER 17 FUNDAMENTAL PRINCIPLES OF RELATIVE VALUATION In discounted cash flow valuation, the objective is to find the value of assets, given their cash flow, growth and risk characteristics. In relative valuation, the objective is to value assets, based upon how similar assets are currently priced in the market. While multiples are easy to use and intuitive, they are also easy to misuse. Cons...

This paper presents the economic ordering policies of time-dependent deteriorating items in presence of trade credit using of discounted cash-flows (DCF) approach. In inventory analysis a DCF approach permits a proper recognition of the financial implication of the opportunity cost and out-of-pocket cost. In the inventory model, shortages are not allowed. In this study mathematical models are a...

business is business! And business must grow –Dr. Seuss, The Lorax The paper investigates the agency argument that sales growth in firms with free cash flow (and without strong governance) is less profitable than sales growth for firms without free cash flow. It also tests whether strong governance conditions improve the performance of firms with free cash flow and/or limit the investments in u...

Service firms seek customers with high revenues, profits, or lifetime value. However, they frequently ignore variations in consumption that lead to cash flow variability and adversely influence service operations and financial performance. This study shows that variation in individual customers’ consumption or spending on services can be decreased in ways that are actionable by most managers, w...

The purpose of this paper is to investigate the causes and consequence of cash flow sensitivity. While cash flow has been regarded as an agency problem, empirical investigations in context of managerial conservatism or optimizing behavior are limited. In this paper we investigate two key aspects of cash flow sensitivity: whether cash flow sensitivity causes variations in fixed asset investments...

This study aimed to assess the economic viability of managing Strypodendron adstringens Mart. Coville in Cerrado sensu stricto North Minas Gerais. To achieve this goal we analyzed feasibility four management plans under selective cuts with 40, 50, 60 and 70% basal area removed (G). The method consisted building a cash flow for species planning horizon ten years. After obtaining flow, help engin...

Adopting a probabilistic approach we determine the optimal dividend payout policy of firm whose surplus process follows controlled arithmetic Brownian motion and cash-flows are discounted at stochastic dynamic rate. Dividends can be paid to shareholders unrestricted rates so that problem is cast as one singular control. The interest rate modeled by Cox–Ingersoll–Ross (CIR) firm's objective maxi...

Project managers normally are facing with difficulties behind management of project cash flow, which requires distinguished methods and appropriate tools to manage negative cash flows. Cash-Flow-at-Risk (CFaR) model is an efficient approach to predict cash flow trend. In this study, all risk factors affecting project management environment have incorporated to predict an accurate project cash f...

In order to improve the accuracy of all kinds of information in the cash business and enhance the linkage between cash inventory forecasting and cash management information in the commercial bank, the first moving average prediction method, the second moving average prediction method, the first exponential smoothing prediction and the second exponential smoothing prediction methods are adopted ...

Presented is a methodology to analyze the expected Levelised Cost Of Electricity (LCOE) in the face of technology uncertainty for AcceleratorDriven Subcritical Reactors (ADSRs). It shows that flexibility in the design and deployment strategy of an ADSR park demonstrator significantly reduces its expected LCOE. The methodology recognizes in the conceptual design a range of possible technological...