tailieunhanh - Lecture Equity asset valuation - Chapter 7: Private company valuation

The main contents of this chapter include all of the following: Value the divisions of public companies, evaluate the price paid for acquired companies, and test for the impairment of goodwill and the development of fair value estimates. | Valuing Private Companies: Factors and Approaches to Consider Presenter Venue Date 1 Private company valuations are used to value the divisions of public companies; evaluate the price paid for acquired companies; and test for the impairment of goodwill and the development of fair value estimates. DISCLAIMER: This presentation is NOT a substitute for the CFA Program curriculum. Candidates should not view this material as reflecting what will be required of them on the CFA exam. Public vs. Private Valuation: Company-Specific Differences Private Firms Public Firms Less mature Later in life cycle Smaller size risk risk premiums Larger and have access to public financing Managers often have substantial ownership position Greater external shareholder ownership Potentially quality & depth of management Greater quality & depth of management LOS: Compare and contrast public and private company valuation. Pages 355 – 356 Stage of Development Private: Includes those in the earliest . | Valuing Private Companies: Factors and Approaches to Consider Presenter Venue Date 1 Private company valuations are used to value the divisions of public companies; evaluate the price paid for acquired companies; and test for the impairment of goodwill and the development of fair value estimates. DISCLAIMER: This presentation is NOT a substitute for the CFA Program curriculum. Candidates should not view this material as reflecting what will be required of them on the CFA exam. Public vs. Private Valuation: Company-Specific Differences Private Firms Public Firms Less mature Later in life cycle Smaller size risk risk premiums Larger and have access to public financing Managers often have substantial ownership position Greater external shareholder ownership Potentially quality & depth of management Greater quality & depth of management LOS: Compare and contrast public and private company valuation. Pages 355 – 356 Stage of Development Private: Includes those in the earliest stages of development. Public: Typically are further advanced in their life cycle and have more capital, assets, and employees. Size Private: Are generally smaller in size and therefore riskier. Lack of access to public equity financing may limit firm growth. Public equity financing, however, also entails regulatory burden. Public: Tend to be larger based on income, assets, cash flows, or other measures. As a result, they are less risky. Larger size and lower risk may increase growth prospects by increasing access to public capital to fund the growth of operations and operating activities. Managerial Ownership Private: Have management that has a controlling interest. This may reduce agency costs. May be able to take a longer-term view. Public: Have greater pressure from external shareholders. Managerial Quality & Depth Private: Have lower quality/depth of management. This may reduce growth and increase risk. Public: Have greater quality/depth of management. Public vs. Private .

• Ngân hàng - Tín dụng
• Equity asset valuation
• Lecture Equity asset valuation
• Equity valuation
• Private company valuation
• Income approach
• Private valuation approaches
• Equity valuation applications
• Equity caluation process
• Intrinsic value
• Residual income valuation
• Valuing common equity
• Residual income
• Valuation indicators
• Valuation ratios internationally
• Momentum indicators
• Discounted dividend valuation
• Present value models
• Gordon growth model
• Free cash flow valuation
• Cash flow available
• Financial statement
• Return concepts
• Quity risk premium
• Capital asset pricing model