How the Equity Terminal Value Influences the Value of the Firm?
The discounted cash flow model (DCFM) views the intrinsic value of common stock as the present value of its expected future cash flows. This paper analyses whether the equity terminal value (EqTV) of the firm calculated by fundamentals is appreciated by the market. It also studies the impact of vari...
| Main Authors: | , , |
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| Format: | info:eu-repo/semantics/article |
| Language: | English |
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De Gruyer
2024
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| Subjects: | |
| Online Access: | http://hdl.handle.net/10835/14948 |
| _version_ | 1789406637138640896 |
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| author | Rojo Ramírez, Alfonso Andrés Martínez Romero, María José Mariño Garrido, Teresa |
| author_facet | Rojo Ramírez, Alfonso Andrés Martínez Romero, María José Mariño Garrido, Teresa |
| author_sort | Rojo Ramírez, Alfonso Andrés |
| collection | DSpace |
| description | The discounted cash flow model (DCFM) views the intrinsic value of common stock as the present value of its expected future cash flows. This paper analyses whether the equity terminal value (EqTV) of the firm calculated by fundamentals is appreciated by the market. It also studies the impact of variations in EqTV and the extent to which the market perceives these variations. Using a sample of 62 Spanish listed companies, this paper shows that EqTV and its variations are positively and significantly correlated with EqTV assigned by the market and its corresponding variations. It therefore corroborates the validity and relevance of the valuation model. |
| format | info:eu-repo/semantics/article |
| id | oai:repositorio.ual.es:10835-14948 |
| institution | Universidad de Cuenca |
| language | English |
| publishDate | 2024 |
| publisher | De Gruyer |
| record_format | dspace |
| spelling | oai:repositorio.ual.es:10835-149482024-01-08T11:31:09Z How the Equity Terminal Value Influences the Value of the Firm? Rojo Ramírez, Alfonso Andrés Martínez Romero, María José Mariño Garrido, Teresa business valuation terminal value equity terminal value implied terminal value discounted cash flow model The discounted cash flow model (DCFM) views the intrinsic value of common stock as the present value of its expected future cash flows. This paper analyses whether the equity terminal value (EqTV) of the firm calculated by fundamentals is appreciated by the market. It also studies the impact of variations in EqTV and the extent to which the market perceives these variations. Using a sample of 62 Spanish listed companies, this paper shows that EqTV and its variations are positively and significantly correlated with EqTV assigned by the market and its corresponding variations. It therefore corroborates the validity and relevance of the valuation model. 2024-01-08T11:31:09Z 2024-01-08T11:31:09Z 2017 info:eu-repo/semantics/article Rojo-Ramirez, A. A., Martínez-Romero, M. J., & Mariño-Garrido, T. (2017). How the equity terminal value influences terminal value. Journal of Business Valuation and Economic Loss Analysis, 13(1), 1–14. http://hdl.handle.net/10835/14948 10.1515/jbvela-2017-0010 en https://www.degruyter.com/document/doi/10.1515/jbvela-2017-0010/html Attribution-NonCommercial-NoDerivatives 4.0 Internacional http://creativecommons.org/licenses/by-nc-nd/4.0/ info:eu-repo/semantics/openAccess De Gruyer |
| spellingShingle | business valuation terminal value equity terminal value implied terminal value discounted cash flow model Rojo Ramírez, Alfonso Andrés Martínez Romero, María José Mariño Garrido, Teresa How the Equity Terminal Value Influences the Value of the Firm? |
| title | How the Equity Terminal Value Influences the Value of the Firm? |
| title_full | How the Equity Terminal Value Influences the Value of the Firm? |
| title_fullStr | How the Equity Terminal Value Influences the Value of the Firm? |
| title_full_unstemmed | How the Equity Terminal Value Influences the Value of the Firm? |
| title_short | How the Equity Terminal Value Influences the Value of the Firm? |
| title_sort | how the equity terminal value influences the value of the firm? |
| topic | business valuation terminal value equity terminal value implied terminal value discounted cash flow model |
| url | http://hdl.handle.net/10835/14948 |
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