9. The Economic Profit Approach to Securities Valuation

  1. Rawley Thomas and
  2. Benton E. Gup
  1. James L. Grant

Published Online: 6 DEC 2011

DOI: 10.1002/9781118268179.ch9

The Valuation Handbook: Valuation Techniques from Today's Top Practitioners

The Valuation Handbook: Valuation Techniques from Today's Top Practitioners

How to Cite

Thomas, R. and Gup, B. E. (2009) The Economic Profit Approach to Securities Valuation, in The Valuation Handbook: Valuation Techniques from Today's Top Practitioners, John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118268179.ch9

Publication History

  1. Published Online: 6 DEC 2011
  2. Published Print: 19 OCT 2009

ISBN Information

Print ISBN: 9780470385791

Online ISBN: 9781118268179

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Keywords:

  • securities valuation;
  • free cash flow model;
  • net present value;
  • market value added;
  • return on capital

Summary

This chapter contains sections titled:

  • Basics of Economic Profit Valuation

  • Economic Profit Models

  • Reconciliation of EVA Models

  • Cost of Capital Effects

  • Pricing Implications

  • EVA Accounting Adjustments

  • Invested Capital

  • EVA Application: JLG Dow Fundamental

  • EVA Link to FCF Valuation

  • FCF Valuation: Horizon Years

  • FCF Valuation: Residual Years

  • Summary

  • Notes

  • Reference