Publications

June 2010 (Revised August 2021)
Case

Vereinigung Hamburger Schiffsmakler und Schiffsagenten e.V. (VHSS): Valuing Ships

By: Benjamin C. Esty and Albert Sheen

After booming for more than five years, the global shipping (maritime) industry experienced a dramatic crash in late 2008 as the global financial system froze and the global economy slid into recession. Ship charter rates (revenue) fell by as much as 90% causing prices... View Details

Keywords: Fair Value Accounting; Financial Crisis; Capital Markets; Financial Liquidity; International Finance; Globalized Markets and Industries; Valuation; Banking Industry; Shipping Industry; Germany

2009
Simulation

Finance Simulation: M&A in Wine Country: No. 3289.

By: Timothy A. Luehrman and W. Carl Kester

In this simulation, students play the role of CEO at one of three publicly-traded wine producers: Starshine, Bel Vino, or International Beverage. Each player evaluates merger and/or acquisition opportunities among the three companies and then determines reservation... View Details

Keywords: Mergers and Acquisitions; Negotiation; Valuation; Value Creation; Food and Beverage Industry; Agriculture and Agribusiness Industry

November – December 2007
Article

Fundamentally Flawed Indexing

By: Andre F. Perold

A new theory of finance is being advanced as providing definitive proof that holding stocks in proportion to their market capitalizations is an inferior investment strategy. The claim is that capitalization weighting necessarily invests more in overvalued stocks and... View Details

Keywords: Investment; Capital Markets; Financial Strategy; Stocks; Financial Management; Valuation

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August 2000 (Revised July 2002)
Background Note

Fundamental Enterprise Valuation: Advantage Horizon

A technical note that defines advantage horizon. View Details

Keywords: Valuation; Business Ventures

August 2000 (Revised July 2002)
Background Note

Fundamental Enterprise Valuation: Capital Expenditures (CAPEX)

A technical note that defines capital expenditures (CAPEX). View Details

Keywords: Valuation; Business Ventures; Capital; Spending

August 2000 (Revised July 2002)
Background Note

Fundamental Enterprise Valuation: Earnings

A technical note that defines earnings. View Details

Keywords: Valuation; Business Ventures; Profit

August 2000 (Revised July 2002)
Background Note

Fundamental Enterprise Valuation: Free Cash Flow

A technical note that defines free cash flow (FCF). View Details

Keywords: Business Ventures; Valuation; Cash Flow

August 2000 (Revised July 2002)
Background Note

Fundamental Enterprise Valuation: Introduction

The purpose of this series of notes is to define the key "drivers" of the fundamental value of equity and to illustrate how these drivers determine the future cash flows and the "present value pattern" of the underlying common stock. The series includes one technical... View Details

Keywords: Equity; Cash Flow; Valuation; Investment; Investment Return; Cost; Capital

August 2000 (Revised July 2002)
Background Note

Fundamental Enterprise Valuation: Invested Capital

A technical note that defines invested capital (IC). View Details

Keywords: Business Ventures; Valuation; Capital

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August 2000 (Revised July 2002)
Background Note

Fundamental Enterprise Valuation: Return on Invested Capital (ROIC)

A technical note that defines return on invested capital (ROIC). View Details

Keywords: Valuation; Business Ventures; Capital

February 1992 (Revised July 1992)
Background Note

Note on Cross-Border Valuation

By: W. Carl Kester and Julia Morley

Provides a fundamental technical review of valuation techniques used to assess cross-border investments. Discusses the discounting of free cash flows with a weighted average cost of capital, the use of adjusted present value, and the importance of considering real... View Details

Keywords: Valuation; Cross-Cultural and Cross-Border Issues