华中农业大学《公司金融学》课件-第3章公司价值评估和基于价值的管理.pptxVIP

华中农业大学《公司金融学》CHAPTER 3Corporate Valuation and Value-Based ManagementCorporate ValuationValue-Based ManagementCorporate Governance Corporate Valuation: List the two types of assets that a company owns.Assets-in-placeFinancial, or nonoperating, assets Assets-in-PlaceAssets-in-place are tangible, such as buildings, machines, inventory.Usually they are expected to grow.They generate free cash flows.The PV of their expected future free cash flows, discounted at the WACC, is the value of operations. Value of Operations Nonoperating AssetsMarketable securitiesOwnership of non-controlling interest in another companyValue of nonoperating assets usually is very close to figure that is reported on balance sheets. Total Corporate ValueTotal corporate value is sum of:Value of operationsValue of nonoperating assets Claims on Corporate ValueDebtholders have first claim.Preferred stockholders have the next claim.Any remaining value belongs to stockholders. Applying the Corporate Valuation ModelForecast the financial statements, as shown in Chapter 11.Calculate the projected free cash flows.Model can be applied to a company that does not pay dividends, a privately held company, or a division of a company, since FCF can be calculated for each of these situations. Data for ValuationFCF0 = $20 millionWACC = 10%g = 5%Marketable securities = $100 millionDebt = $200 millionPreferred stock = $50 millionBook value of equity = $210 million Value of Operations: Constant GrowthSuppose FCF grows at constant rate g. Constant Growth FormulaNotice that the term in parentheses is less than one and gets smaller as t gets larger. As t gets very large, term approaches zero. Constant Growth Formula (Cont.)The summation can be replaced by a single formula: Find Value of Operations Value of EquitySources of Corporate ValueValue of operations = $420Value of non-operating assets = $100Claims on Corporate ValueValue of Debt = $200Value of Preferred Stock = $50Value of Equity = ? Value of EquityTotal