pe公司估值教程（一）.pdf

ValuationValuation
Aswath Damodaran
175
First Principles
l Invest in projects that yield a return greater than the minimum
acceptable hurdle rate.
– The hurdle rate should be higher for riskier projects and reflect the
financing mix used - owners’ funds (equity) or borrowed money (debt)
– Returns on projects should be measured based on cash flows generated
and the timing of these cash flows; they should also consider both positive
and negative side effects of these projects.
l Choose a financing mix that minimizes the hurdle rate and matches the
assets being financed.
l If there are not enough investments that earn the hurdle rate, return the
cash to stockholders.
– The form of returns - dividends and stock buybacks - will depend upon
the stockholders’ characteristics.
Objective: Maximize the Value of the Firm
176
Discounted Cashflow Valuation: Basis for
Approach
t = n
CFt
Value = å t
t =1(1+ r)
– where,
– n = Life of the asset
– CFt = Cashflow in period t
– r = Discount rate reflecting the riskiness of the estimated cashflows
177
Equity Valuation versus Firm Valuation
l value just the equity stake in the business
l value the entire firm, which includes, besides equity, the other
claimholders in the firm
178
Valuation
l The value of equity is obtained by discounting expected cashflows to
equity, ., the residual cashflows after meeting all expenses, tax
obligations and interest and principal payments, at the cost of equity,
., the rate of return required by equity investors in the firm.
t=n
CF to Equityt
Value of Equity = å t
t=1 (1+ ke )
where,
CF to Equityt = Expected Cashflow to Equity in period t
ke = Cost of Equity
l The dividend discount model is a specialized case of equity valuation,
and the value of a stock is the present value of expected future
dividends.
179
II. Firm Valuation
l The value of the firm is obtained by discounting expected cash