Stern School of Business

Displaying 1-14 of 14 results

  • White Papers // Aug 2010

    A New ?Risky? World Order: Unstable Risk Premiums Implications For Practice

    Investors have to be offered risk premiums to invest in risky assets. These risk premiums take different forms in different asset markets: Equity Risk Premiums (ERP) in stock markets, default spreads in bond markets and real asset premiums in other asset markets. These premiums have their roots in fundamentals and...

    Provided By Stern School of Business

  • White Papers // Jul 2010

    Into The Abyss: What If Nothing Is Risk Free?

    In corporate finance and investment analysis, the authors assume that there is an investment with a guaranteed return that offers both firms and investors a "Risk free" choice. This assumption, innocuous though it may seem, is a critical component of both risk and return models and corporate financial theory. In...

    Provided By Stern School of Business

  • White Papers // Feb 2010

    Equity Risk Premiums (ERP): Determinants, Estimation And Implications -The 2010 Edition

    Equity risk premiums are a central component of every risk and return model in finance and are a key input into estimating costs of equity and capital in both corporate finance and valuation. Given their importance, it is surprising how haphazard the estimation of equity risk premiums remains in practice....

    Provided By Stern School of Business

  • White Papers // Oct 2009

    Equity Risk Premiums (ERP): Determinants, Estimation And Implications - A Post-Crisis Update

    Equity risk premiums are a central component of every risk and return model in finance and are a key input into estimating costs of equity and capital in both corporate finance and valuation. Given their importance, it is surprising how haphazard the estimation of equity risk premiums remains in practice....

    Provided By Stern School of Business

  • White Papers // Sep 2009

    Ups And Downs: Valuing Cyclical And Commodity Companies

    Cyclical and commodity companies share a common feature, insofar as their value is often more dependent on the movement of a macro variable (the commodity price or the growth in the underlying economy) than it is on firm specific characteristics. Thus, the value of an oil company is inextricably linked...

    Provided By Stern School of Business

  • White Papers // Sep 2009

    Volatility Rules: Valuing Emerging Market Companies

    As the center of gravity shifts from developed markets in the United States to emerging markets in Asia and Latin America, analysts are also grappling with estimation questions that arise more frequently with emerging market companies. In this paper, we begin by looking at common errors that show up in...

    Provided By Stern School of Business

  • White Papers // Jun 2009

    Valuing Distressed And Declining Companies

    The most difficult companies to value are at either end of the life cycle, with young growth companies and declining companies posing the biggest challenges. In this paper, the authors focus on companies that are at the tail end of their life cycles and examine how best to value companies...

    Provided By Stern School of Business

  • White Papers // May 2009

    Valuing Young, Start-Up And Growth Companies: Estimation Issues And Valuation Challenges

    Young companies are difficult to value for a number of reasons. Some are start-up and idea businesses, with little or no revenues and operating losses. Even those young companies that are profitable have short histories and most young firms are dependent upon private capital, initially owner savings and venture capital...

    Provided By Stern School of Business

  • White Papers // Apr 2009

    Closure In Valuation: Estimating Terminal Value

    In the last paper, the authors examined the determinants of expected growth. Firms that reinvest substantial portions of their earnings and earn high returns on these investments should be able to grow at high rates. But for how long? In this paper, they bring closure to firm valuation by considering...

    Provided By Stern School of Business

  • White Papers // Apr 2009

    Valuing Financial Service Firms

    Valuing banks, insurance companies and investment banks has always been difficult, but the market crisis of 2008 has elevated the concern to the top of the list of valuation issues. The problems with valuing financial service firm stem from two key characteristics. The first is that the cash flows to...

    Provided By Stern School of Business

  • White Papers // Apr 2009

    Leases, Debt And Value

    When analyzing or the value of a firm, there are three basic questions that the authors need to address: How much is the firm generating as earnings? How much capital has been invested in its existing investments? How much has the firm borrowed? In answering these questions, they depend upon...

    Provided By Stern School of Business

  • White Papers // Dec 2008

    What Is The Riskfree Rate? A Search For The Basic Building Block

    In corporate finance and valuation, the authors start off with the presumption that the riskfree rate is given and easy to obtain and focus the bulk of the attention on estimating the risk parameters of individuals firms and risk premiums. But is the riskfree rate that simple to obtain? Both...

    Provided By Stern School of Business

  • White Papers // Nov 2008

    On-Line Brand Advertising Using Social Networks Based On User-Generated Content

    This paper is about brand advertising on the web, and about a method for taking advantage of user-generated content on social-networking sites (and beyond) to improve on-line advertising. Different from most sponsored search advertising and click-driven display advertising, on-line brand advertising is less straightforward to assess, and perhaps for that...

    Provided By Stern School of Business

  • White Papers // Aug 2008

    Claims On Equity: Voting And Liquidity Differentials, Cash flow Preferences And Financing Rights

    In practice, though, claims on equity can vary on a number of dimensions. First, the claim can be a direct and perpetual one or it can be contingent on the value changing. Second, some equity investors have preferential claims on the cash flows - dividends in some cases and cash...

    Provided By Stern School of Business

  • White Papers // Nov 2008

    On-Line Brand Advertising Using Social Networks Based On User-Generated Content

    This paper is about brand advertising on the web, and about a method for taking advantage of user-generated content on social-networking sites (and beyond) to improve on-line advertising. Different from most sponsored search advertising and click-driven display advertising, on-line brand advertising is less straightforward to assess, and perhaps for that...

    Provided By Stern School of Business

  • White Papers // Aug 2008

    Claims On Equity: Voting And Liquidity Differentials, Cash flow Preferences And Financing Rights

    In practice, though, claims on equity can vary on a number of dimensions. First, the claim can be a direct and perpetual one or it can be contingent on the value changing. Second, some equity investors have preferential claims on the cash flows - dividends in some cases and cash...

    Provided By Stern School of Business

  • White Papers // Jul 2010

    Into The Abyss: What If Nothing Is Risk Free?

    In corporate finance and investment analysis, the authors assume that there is an investment with a guaranteed return that offers both firms and investors a "Risk free" choice. This assumption, innocuous though it may seem, is a critical component of both risk and return models and corporate financial theory. In...

    Provided By Stern School of Business

  • White Papers // Aug 2010

    A New ?Risky? World Order: Unstable Risk Premiums Implications For Practice

    Investors have to be offered risk premiums to invest in risky assets. These risk premiums take different forms in different asset markets: Equity Risk Premiums (ERP) in stock markets, default spreads in bond markets and real asset premiums in other asset markets. These premiums have their roots in fundamentals and...

    Provided By Stern School of Business

  • White Papers // Oct 2009

    Equity Risk Premiums (ERP): Determinants, Estimation And Implications - A Post-Crisis Update

    Equity risk premiums are a central component of every risk and return model in finance and are a key input into estimating costs of equity and capital in both corporate finance and valuation. Given their importance, it is surprising how haphazard the estimation of equity risk premiums remains in practice....

    Provided By Stern School of Business

  • White Papers // Jun 2009

    Valuing Distressed And Declining Companies

    The most difficult companies to value are at either end of the life cycle, with young growth companies and declining companies posing the biggest challenges. In this paper, the authors focus on companies that are at the tail end of their life cycles and examine how best to value companies...

    Provided By Stern School of Business

  • White Papers // Sep 2009

    Ups And Downs: Valuing Cyclical And Commodity Companies

    Cyclical and commodity companies share a common feature, insofar as their value is often more dependent on the movement of a macro variable (the commodity price or the growth in the underlying economy) than it is on firm specific characteristics. Thus, the value of an oil company is inextricably linked...

    Provided By Stern School of Business

  • White Papers // Apr 2009

    Valuing Financial Service Firms

    Valuing banks, insurance companies and investment banks has always been difficult, but the market crisis of 2008 has elevated the concern to the top of the list of valuation issues. The problems with valuing financial service firm stem from two key characteristics. The first is that the cash flows to...

    Provided By Stern School of Business

  • White Papers // Apr 2009

    Closure In Valuation: Estimating Terminal Value

    In the last paper, the authors examined the determinants of expected growth. Firms that reinvest substantial portions of their earnings and earn high returns on these investments should be able to grow at high rates. But for how long? In this paper, they bring closure to firm valuation by considering...

    Provided By Stern School of Business

  • White Papers // May 2009

    Valuing Young, Start-Up And Growth Companies: Estimation Issues And Valuation Challenges

    Young companies are difficult to value for a number of reasons. Some are start-up and idea businesses, with little or no revenues and operating losses. Even those young companies that are profitable have short histories and most young firms are dependent upon private capital, initially owner savings and venture capital...

    Provided By Stern School of Business

  • White Papers // Apr 2009

    Leases, Debt And Value

    When analyzing or the value of a firm, there are three basic questions that the authors need to address: How much is the firm generating as earnings? How much capital has been invested in its existing investments? How much has the firm borrowed? In answering these questions, they depend upon...

    Provided By Stern School of Business

  • White Papers // Dec 2008

    What Is The Riskfree Rate? A Search For The Basic Building Block

    In corporate finance and valuation, the authors start off with the presumption that the riskfree rate is given and easy to obtain and focus the bulk of the attention on estimating the risk parameters of individuals firms and risk premiums. But is the riskfree rate that simple to obtain? Both...

    Provided By Stern School of Business

  • White Papers // Sep 2009

    Volatility Rules: Valuing Emerging Market Companies

    As the center of gravity shifts from developed markets in the United States to emerging markets in Asia and Latin America, analysts are also grappling with estimation questions that arise more frequently with emerging market companies. In this paper, we begin by looking at common errors that show up in...

    Provided By Stern School of Business

  • White Papers // Feb 2010

    Equity Risk Premiums (ERP): Determinants, Estimation And Implications -The 2010 Edition

    Equity risk premiums are a central component of every risk and return model in finance and are a key input into estimating costs of equity and capital in both corporate finance and valuation. Given their importance, it is surprising how haphazard the estimation of equity risk premiums remains in practice....

    Provided By Stern School of Business