Business, Management and Accounting
8 years ago

New method for valuing firms could change the game for investors.

1 view
SSRN Electronic Journal
How to Consider Excess Cash in Firm Valuation
Andres Rubio

Paper Summary

The article discusses how to properly value a company by considering excess cash. It suggests using the Harris & Pringle theory to discount tax savings at the unlevered cost of equity. Simply subtracting debt from excess cash doesn't give an accurate valuation; instead, the total debt should be used.

Related papers

Economics, Econometrics and Finance
a year ago

Unveiling the Secrets of Cash: How Economists Decode Consumer Behavior

Monetary Models
Macroeconomic Trends
Two-Sided Markets
1 view
Business, Management and Accounting
8 years ago

Unlocking the Value of High-Growth Businesses: A Game-Changer in Forecasting

Value-based Management
Business, Management and Accounting
8 years ago

Unlocking the Power of Cash Ownership for Better Financial Management

Sovereign Wealth
Value-based Management
Banking Finance
1 view