Equity Asset Valuation

- Foreword
- Preface
- Acknowledgements
- About the Authors

Chapter 1. The Equity Valuation Process
- Learning Outcomes
- Introduction
- The Valuation Process
- Understanding the Business.Forecasting Company Performance.Selecting the Appropriate Valuation Model
- Performing Valuation: The Analyst's Role and Responsibilities
- Communicationg Valuation Results: The Research Report
- Summary

Chapter 2. Discounted Dividend Valuation
- Learning Outcomes
- Introduction
- Present Value Models
- The Dividend Discount Model
- The Gordon Growth Model
- Multistage Dividend Discount Models
- The Financial Determinants of Growth Rates
- Summary

Chapter 3. Free Cash Flow
- Learning Outcomes
- Introduction
- FCFF and FCFE Valuation Approaches
- Forecasting Free Cash Flow
- Free Cash Flow Model Variations
- Non-Operating Assets and Firm Value
- Summary

Chapter 4. Market-Based Valuation: Price Multiples
- Learning Outcomes
- Introduction
- Price Multiples in Valuation
- Price to Earnings
- Price to Book Value
- Price to Sales
- Price to Cash Flow
- Enterprise Value to EBITDA
- Dividend Yield
- International Valuation Considerations
- Momentum Valuation Indicators
- Valuation Indicators and Investment Management
- Summary

Chapter 5. Residual Income Valuation
- Learning Outcomes
- Introduction
- Residual Income
- The Residual Income Valuation Model
- Accounting and International Considerations
- Single-Stage Residual Income Valuation
- Multi-Stage Residual Income Valuation

- Index

JOHN D. STOWE, CFA, PHD, is Head of Curriculum Development at CFA Institute. Prior to joining CFA Institute, he was a professor of finance and associate dean at the University of Missouri-Columbia, where he taught investments and corporate finance. Stowe has won several teaching awards and has published frequently in academic and professional journals in finance. He is also coauthor of a college-level textbook in corporate finance. Stowe earned his BA from Centenary College and his PhD in economics from the University of Houston. He obtained his CFA charter in 1995 and began grading CFA examinations in 1996.

THOMAS R. ROBINSON, CFA, PHD, CPA, CFP, is an Associate Professor of Accounting and Director of the Master of Professional Accounting program at the University of Miami. He is also Managing Director of Robinson, Desmond & Zwerner, a state registered investment advisory firm. Robinson has a BA in economics from the University of Pennsylvania and a master's and PhD in accounting from Case Western Reserve University. He is a Certified Public Accountant (Ohio), Certified Financial Planner(r) (CFP(r)) certificant, and Chartered Financial Analyst(r) (CFA(r)) charterholder. Prior to joining the University of Miami, Robinson practiced public accounting and financial planning for ten years, and also served as a consultant in the areas of financial statement analysis and valuation.

JERALD E. PINTO, CFA, is Director in the CFA and CIPM Programs Division at CFA Institute. Before coming to CFA Institute in 2002, he was a consultant to corporations, foundations, and partnerships in investment planning, portfolio analysis, and quantitative analysis. He has also worked in the investment and banking industries in New York City and taught finance at New York University's Stern School of Business. He holds an MBA from Baruch College and a PhD in finance from the Stern School. Pinto obtained his CFA charter in 1992.

DENNIS W. MCLEAVEY, CFA, is Head of Professional