Graphical Summary of the Basic Ideas on Valuation (in Spanish)

4 Pages Posted: 29 Mar 2006  

Ignacio Velez-Pareja

Grupo Consultor CAV Capital Advisory & Valuation

Date Written: March 20, 2006

Abstract

This is a summary of the basic ideas on valuation depicted as a conceptual map. Under the assumption that Capital Asset Pricing Model, CAPM, works and that the discount rate for the tax savings is Ku, I show the sequence of calculations and interactions among the variables, beta, values, cash flows and discount rates. We might consider that Ku is the origin of everything.

Note: Downloadable document is in Spanish. The English version is available at http://ssrn.com/abstract=892487

Keywords: WACC, valuation methods, cash flows

JEL Classification: D61, G31, H43

Suggested Citation

Velez-Pareja, Ignacio, Graphical Summary of the Basic Ideas on Valuation (in Spanish) (March 20, 2006). Available at SSRN: https://ssrn.com/abstract=892488 or http://dx.doi.org/10.2139/ssrn.892488

Ignacio Velez-Pareja (Contact Author)

Grupo Consultor CAV Capital Advisory & Valuation ( email )

Ave Miramar # 18-93 Apt 6A
Cartagena
Colombia
+573112333074 (Phone)

HOME PAGE: http://cashflow88.com/decisiones/decisiones.html

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