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The Pricing of Internet Stocks (II)
Estrada, JavierTechnical Note FN-475-EFinanceThis note, which complements the note "The Pricing of Internet Stocks" (FN-467-E), addresses the application of the reverse valuation and expected values methods to the valuation of Yahoo!, the leading Internet portal and one of the blue chips of the Internet world. The note concludes by stressing that, regardless of the merits of the new measures designed to assess the value of Internet stocks, the value of any company was, is, and always will b...Starting at €8.20
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The Arithmetic of Active Management: An Example
Estrada, JavierTechnical Note FN-643-EFinanceMany people find it hard to believe that smart, well-paid, motivated, hard-working active fund managers fail to achieve, far more often than not, their goal of outperforming their benchmarks, particularly over long periods. However, the evidence on this is both substantial and unquestionable. This note provides an example of what is often called the arithmetic of active management; that is, the theoretical result that states that active managemen...Starting at €8.20
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The Essential Financial Toolkit: Tool 9 - Multiples
Estrada, JavierTechnical Note FN-563-EFinanceThis note discusses stock valuation using relative valuation ratios, typically referred to as multiples. These multiples are widely used by equity analysts and widely discussed in the financial press. Their popularity is largely due to their simplicity but, as discussed in this case, this simplicity may be deceiving, may lead to faulty analyses, and ultimately to wrong investment decisions.Starting at €8.20
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The Essential Financial Toolkit: Tool 8 - NPV and IRR
Estrada, JavierTechnical Note FN-562-EFinanceThis note discusses the two most widely-used tools for project evaluation, NPV and IRR. Both tools require a critical input, the cost of capital, one of the most essential magnitudes for any company, which is also briefly discussed. Both NPV and IRR have applications that go way beyond project evaluation and no toolbox would be complete without them.Starting at €8.20
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Beta, apalancamiento, y coste del capital
Estrada, JavierTechnical Note FN-616FinanceLa presente nota analiza brevemente el beta apalancado y no apalancado, una técnica versátil y ampliamente utilizada que tiene muchas y diversas aplicaciones en el ámbito de las finanzas. En concreto, esta nota aborda la lógica de dicha técnica y sus principales expresiones matemáticas, e ilustra su utilidad mediante un caso práctico basado en la empresa Starbucks.Starting at €8.20
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The Essential Financial Toolkit: Tool 5 - Required Returns and the CAPM
Estrada, JavierTechnical Note FN-559-EFinanceThis note discusses the relationship between risk and return. It is obvious that investors would want a higher exposure to risk to be compensated with a higher return, but in order to estimate the actual return investors should require at different levels of risk, we need a model. The CAPM, one of the models most widely used in finance, provides a simple and intuitive way to tackle this issue.Starting at €8.20
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The Essential Financial Toolkit: Tool 7 - Risk-Adjusted Returns
Estrada, JavierTechnical Note FN-561-EFinanceThis note discusses how to properly evaluate the performance of assets by taking into account not just their returns, as most commercial rankings do, but also their risk. And because risk can be defined in more than one way, there is more than one measure of risk-adjusted returns. We will discuss five of them, some differing in the way they define risk and others in the way they incorporate it into a risk-adjusted measure.Starting at €8.20
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The Pricing of internet stocks
Estrada, Javier; Cirera A.Technical Note FN-467-EFinanceThe technical note recreates a report written by a consultant to his clients which, far from trying to justify the valuation of Internet stocks, attempts to be a map to guide unaware investors through the madness of investing in these shares. It covers several interesting facts and opinions about Internet companies, analyzes the rationale behind the low supply and the high demand for Internet stocks, discusses several methods currently used for v...Starting at €8.20
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The CAPM, the Cost of Capital, and Project Evaluation
Estrada, JavierTechnical Note FN-567-EFinanceThis note provides a very brief introduction to the CAPM, the cost of capital, and the two main tools used in project evaluation, NPV and IRR. It is intended only as a primer on some basic aspects of these topics, and to be followed by class discussions or cases.Starting at €8.20
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Herramientas financieras esenciales: Herramienta 5 - La rentabilidad exigida y el CAPM
Estrada, JavierTechnical Note FN-559FinanceEn esta nota se analiza la relación entre riesgo y rentabilidad. Es evidente que todos los inversores desean que una mayor exposición al riesgo sea compensada con una rentabilidad también mayor, pero para poder estimar la rentabilidad real que los inversores deberían exigir en función de los diferentes niveles de riesgo necesitamos un modelo. El CAPM (modelo de valoración de activos financieros) es uno de los modelos más utilizados en finanzas y ...Starting at €8.20