Titlebook: Corporate Valuation; A Practical Approach Benedicto Kulwizira Lukanima Textbook 2023 The Editor(s) (if applicable) and The Author(s), under

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Anna Kuliscioff’s Labour Economicsd acquisitions (M&A), and portfolio management. Although the term “valuation” seems to be common, many people may be unaware of its core components. There are different ways in which valuation can be performed—hence, it is not an absolute process. Therefore, different analysts recommend different va

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in the existence of a financial object, such as a firm. This is where movements of financial resources take place: starting from injection of capital (financing) and buying assets (investing) to generating revenues (operating). Corporate valuation, therefore, plays a significant role in determining

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Giacomo Gabbuti,María Gómez Leóntime means losing money. In the real world, every aspect of human activity takes time—that is, time is valuable because, in the end, it is translated into returns. Now, suppose that you have won a lottery worth $10,000 and you are asked: “We would like to pay your money; do you prefer to receive it

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The Question of Counterpossibles,nputs required in all valuation models. For instance, some valuation models utilize free cash flows to estimate the intrinsic value. Likewise, relative valuation models utilize financial metrics like earnings, book value of equity, dividends, and so on. Therefore, knowledge about financial informati

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The Question of Counterpossibles,because of three reasons. First, it can improve earnings and investment returns. Second, interest expenses create a tax shield, thereby reducing the net cost of debt. Third, leverage comes with financial risk regarding the ability to fulfill financial obligations. Therefore, balancing between the be

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ts. Net earnings, reported in the income statement, belong to shareholders and can be distributed to them either directly in the form of “dividends” or indirectly through retained earnings to increase their net wealth. While earnings per share (EPS) is a book value, stock prices are driven by invest

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Tomasz Nowak,Piotr Skrzypczyńsking off debts, paying dividends, etc. A cash flow statement shows the movement of cash through the three main types of business activities (operating, investing, and financing) and cash balance for the financial period. However, cash balance is not free cash flow (FCF); it is a key variable in corpor