Ohlson(1995) and Feltham and Ohlson (1995) explain the importance of the financial reports through clean surplus relation and build up the relationship of market value, book value and earnings. The main structure of Ohlson model is the balance sheet and the income statement; however, the model doesn¡¦t contain the information of cash flows. The purpose of this paper is to find the relationship of accruals, cash flows, and market value. The results of this paper show that to divide net income into accruals and cash flows is good at forecasting abnormal earnings and valuing market value. To divide accruals into separate accruals also is helpful to forecast abnormal earnings and value market value. The cash flows and the accruals are different at forecasting and valuing. Key words¡GAccruals, Cash Flows, Market Value

No description available.

Master-Arbeit Univ. St. Gallen, 2008.

The aim of my thesis is to estimate market value of the company Metrostav as of December 31, 2008. To achieve this objective several analyses including financial analysis, strategic analysis and analysis of value drivers have been done. Finally, a financial plan has been set up and DCF Equity method of valuation implemented. Market value of Metrostav equity as of December 31, 2008 has been estimated at CZK 10 037 million.

As proposições seminais de Modigliani e Miller iniciaram um campo novo de estudos na moderna teoria de finanças. Com o passar do tempo, suas premissas básicas foram sendo relaxadas, de tal sorte que atualmente são raras as situações em que podem ser aplicadas plenamente, obtendo resultados satisfatórios e consistentes. Por outro lado, pelo fato desse conjunto simples de proposições ter se tornado mundialmente conhecido e de fácil aplicação, acabou sendo adotado como receita geral para a avaliação de empresas. Este trabalho revisita, criticamente, as idéias de Modigliani e Miller, verificando que a aplicação simples e imediata das proposições pode enviesar os valores da firma e do capital próprio. Em situações em que não existe viés de metodologia, os valores resultantes são herméticos, não possibilitando a análise e administração dos elementos individuais que compõem o valor da firma e do capital próprio. O presente trabalho sugere uma metodologia alternativa de avaliação da firma e do capital próprio que independe da validade das premissas de Modigliani e Miller, de tal forma que seja possível a identificação analítica dos componentes de seu valor. A metodologia de avaliação proposta considera que o valor dos ativos independe da estrutura de capital, mas que existe certo componente de valor da firma (diferente do valor dos ativos) que depende da interação entre o financiamento pelo capital próprio e os investimentos operacionais, e que esse valor pode ser identificado e contabilizado isoladamente. A metodologia de avaliação proposta também considera o ganho da dívida como componente do valor da firma e do capital próprio, pelo fato de ser, do ponto de vista do acionista, o quanto de valor o capital de terceiros agrega à firma e ao capital próprio. O arcabouço teórico da metodologia apresentada neste trabalho é encontrado no desenvolvimento do Valor Presente Ajustado, pois, conceitualmente, abrange todos os ´efeitos colaterais´ que podem advir da interação entre estrutura de capital e de investimentos. / The seminal proposals by Modigliani and Miller constituted the start of a new study area in modern finance theory. Over time, their basic premises were slackened to the extent that, nowadays, there are few situations in which they can fully be applied and obtain satisfactory and consistent results. On the other hand, due to the fact that this simple set of proposals became known around the world and is easy to apply, it ended up being adopted as a general recipe for company valuation. We present a critical review of Modigliani and Miller’s ideas, verifying that the simple and immediate application of these proposals can bias firm and equity values. In situations where no methodological bias is present, the resulting values are hermetic and do not permit the analysis and management of the individual components of firm and equity values. This study suggests an alternative methodology for firm and own capital valuation which does not depend on the validity of Modigliani and Miller’s premises, allowing for the analytical identification of firm and equity value components. The proposed valuation methodology considers that asset value does no depend on capital structure, but that there exists a certain component of firm value (different from asset value) which depends on the interaction between debt and equity financing and operational investments, and that this value can be identified and accounted for in itself. The valuation methodology proposed here also considers the gain on debt as a component of firm and equity value, due to the fact that, from the stockholder’s perspective, it represents the amount of value debt adds to the firm and to the own capital. The theoretical framework of the methodology presented here resides in the development of Adjusted Present Value, as it conceptually covers all ´collateral effects´ that may stem from the interaction between capital structure and investments.

As proposições seminais de Modigliani e Miller iniciaram um campo novo de estudos na moderna teoria de finanças. Com o passar do tempo, suas premissas básicas foram sendo relaxadas, de tal sorte que atualmente são raras as situações em que podem ser aplicadas plenamente, obtendo resultados satisfatórios e consistentes. Por outro lado, pelo fato desse conjunto simples de proposições ter se tornado mundialmente conhecido e de fácil aplicação, acabou sendo adotado como receita geral para a avaliação de empresas. Este trabalho revisita, criticamente, as idéias de Modigliani e Miller, verificando que a aplicação simples e imediata das proposições pode enviesar os valores da firma e do capital próprio. Em situações em que não existe viés de metodologia, os valores resultantes são herméticos, não possibilitando a análise e administração dos elementos individuais que compõem o valor da firma e do capital próprio. O presente trabalho sugere uma metodologia alternativa de avaliação da firma e do capital próprio que independe da validade das premissas de Modigliani e Miller, de tal forma que seja possível a identificação analítica dos componentes de seu valor. A metodologia de avaliação proposta considera que o valor dos ativos independe da estrutura de capital, mas que existe certo componente de valor da firma (diferente do valor dos ativos) que depende da interação entre o financiamento pelo capital próprio e os investimentos operacionais, e que esse valor pode ser identificado e contabilizado isoladamente. A metodologia de avaliação proposta também considera o ganho da dívida como componente do valor da firma e do capital próprio, pelo fato de ser, do ponto de vista do acionista, o quanto de valor o capital de terceiros agrega à firma e ao capital próprio. O arcabouço teórico da metodologia apresentada neste trabalho é encontrado no desenvolvimento do Valor Presente Ajustado, pois, conceitualmente, abrange todos os ´efeitos colaterais´ que podem advir da interação entre estrutura de capital e de investimentos. / The seminal proposals by Modigliani and Miller constituted the start of a new study area in modern finance theory. Over time, their basic premises were slackened to the extent that, nowadays, there are few situations in which they can fully be applied and obtain satisfactory and consistent results. On the other hand, due to the fact that this simple set of proposals became known around the world and is easy to apply, it ended up being adopted as a general recipe for company valuation. We present a critical review of Modigliani and Miller’s ideas, verifying that the simple and immediate application of these proposals can bias firm and equity values. In situations where no methodological bias is present, the resulting values are hermetic and do not permit the analysis and management of the individual components of firm and equity values. This study suggests an alternative methodology for firm and own capital valuation which does not depend on the validity of Modigliani and Miller’s premises, allowing for the analytical identification of firm and equity value components. The proposed valuation methodology considers that asset value does no depend on capital structure, but that there exists a certain component of firm value (different from asset value) which depends on the interaction between debt and equity financing and operational investments, and that this value can be identified and accounted for in itself. The valuation methodology proposed here also considers the gain on debt as a component of firm and equity value, due to the fact that, from the stockholder’s perspective, it represents the amount of value debt adds to the firm and to the own capital. The theoretical framework of the methodology presented here resides in the development of Adjusted Present Value, as it conceptually covers all ´collateral effects´ that may stem from the interaction between capital structure and investments.

The main objective of this diploma thesis is a business valuation of company Pražská energetika, a.s. The aim of this assignment is to indicate the market value as of 1/1/2009. The appraisal is carried out by means of income method DCF in Equity version. In addition, there is a comparison with direct evaluation, where the data are taken directly from the capital market. The thesis is divided into eight chapters, which deal subsequently with basic characteristics, methods of how the strategic and financial analysis has been carried out, value drivers prediction, as well as separation of non-operating assets and calculation of discount rate including the final evaluation. The methods used are mostly similar to methods stated in publications by Miloš Mařík. The results of this appraisal could be useful for small investors, who consider buying or selling stocks of this company.

It is twenty-one years since South Africa’s democracy and the majority of South African households can still be classified as poor, despite the various interventions by Government to reduce poverty and inequality. The measurement used to determine the financial status of a household at a given point in time is its net equity in accordance with its Statement of Financial Position, calculated as its assets owned less liabilities owed. This study aimed to identify the selected significant factors that affect a South African household’s net equity value. In order to achieve the aim of this study, a heuristic model consisting of two components was developed. The first component considered which assets and liabilities should be included in determining a household’s net equity and how these assets and liabilities should be valued. The second component identified the selected factors that influence a household’s net equity. The heuristic model was applied to the empirical data using three phases. Firstly, the net equity value was calculated for each household. This was followed by an analysis of the selected factors that significantly influence household net equity. The last phase was performed to determine the effect of the identified selected factors in explaining the difference between households that have above average net equity values and those having below average values. The results of the study indicated that 11 selected factors significantly influence the net equity value in the South African household’s Statement of Financial Position. Seven of those factors significantly explain between 28,3 percent and 38,1 percent of the differences in the net equity value of a household when comparing the households with above average net equity value with those with below average values. This is useful information for policy makers in identifying the selected factors that will most significantly increase the net equity value of a household with a net equity value below the South African average. / Centre for Accounting Studies / M. Com. (Accounting Science)

It is twenty-one years since South Africa’s democracy and the majority of South African households can still be classified as poor, despite the various interventions by Government to reduce poverty and inequality. The measurement used to determine the financial status of a household at a given point in time is its net equity in accordance with its Statement of Financial Position, calculated as its assets owned less liabilities owed. This study aimed to identify the selected significant factors that affect a South African household’s net equity value. In order to achieve the aim of this study, a heuristic model consisting of two components was developed. The first component considered which assets and liabilities should be included in determining a household’s net equity and how these assets and liabilities should be valued. The second component identified the selected factors that influence a household’s net equity. The heuristic model was applied to the empirical data using three phases. Firstly, the net equity value was calculated for each household. This was followed by an analysis of the selected factors that significantly influence household net equity. The last phase was performed to determine the effect of the identified selected factors in explaining the difference between households that have above average net equity values and those having below average values. The results of the study indicated that 11 selected factors significantly influence the net equity value in the South African household’s Statement of Financial Position. Seven of those factors significantly explain between 28,3 percent and 38,1 percent of the differences in the net equity value of a household when comparing the households with above average net equity value with those with below average values. This is useful information for policy makers in identifying the selected factors that will most significantly increase the net equity value of a household with a net equity value below the South African average. / Taxation / M. Phil. (Accounting Science)