Publicação
Estimating implied cost of equity capital using accounting - based valuation models
| Resumo: | Cost of equity capital is a highly critical and therefore widely researched input for numerous financial models used in corporate practice. In the past decades academic researchers developed implied cost of equity capital (ICE) models using accounting-based valuation approaches and analyst forecasts to estimate the return required by equity investors. While academic literature on this topic aims for empirical contributions, my study presents a practical implementation of these methods for finance professionals. Specifically, I develop a Microsoft Excel-based tool that incorporates the most prevalent ICE models and provides a framework to evaluate their potential ability to predict future realized returns. |
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| Autores principais: | Gober, Philipp Daniel |
| Assunto: | Corporate finance Corporate valuation Cost of equity Implied cost of capital Equity premium Analyst forecasts Residual income valuation Abnormal earnings growth valuation |
| Ano: | 2023 |
| País: | Portugal |
| Tipo de documento: | dissertação de mestrado |
| Tipo de acesso: | acesso aberto |
| Instituição associada: | Universidade Nova de Lisboa |
| Idioma: | inglês |
| Origem: | Repositório Institucional da UNL |
| Resumo: | Cost of equity capital is a highly critical and therefore widely researched input for numerous financial models used in corporate practice. In the past decades academic researchers developed implied cost of equity capital (ICE) models using accounting-based valuation approaches and analyst forecasts to estimate the return required by equity investors. While academic literature on this topic aims for empirical contributions, my study presents a practical implementation of these methods for finance professionals. Specifically, I develop a Microsoft Excel-based tool that incorporates the most prevalent ICE models and provides a framework to evaluate their potential ability to predict future realized returns. |
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