Understand how to use equity market metrics such as the price earnings ratio (and other
multiples) to value public and private enterprises. This essential book gives you the tools you
need to identify and qualify investments and assess business strategy and performance. Author
George Calhoun Founding Director of the Quantitative Finance Program at Stevens Institute of
Technology shows you how to use metrics to appraise mergers acquisitions and spin-offs. You
will be able to shed light on financial market conditions benchmark fair value assessments
and check and calibrate complex cash flow models.Market multiples share a peculiar
construction: they are based on an explicit apples-to-oranges comparison of market prices with
accounting fundamentals combining data derived from two very different sources and
methodologies. This creates ambiguities in interpretation that can complicate the application
of these metrics for the many purposes. Multiples are thus easy to construct but they can be
difficult to interpret. The meanings of certain multiples have evolved over time and
new-and-improved versions have been introduced. The field is becoming more complex and the
question of which metrics perform best can be a source of controversy. What You Will Learn Know
the definitions interpretations and applications of all major market ratios including: price
earnings (trailing and forward) cyclically adjusted price earnings cash-adjusted price
earnings EV EBITDA price sales dividend yield and many more Examine the factors that drive
the values of ratios from firm level (such as earnings growth leverage and governance) to
market level (such as inflation tax and fiscal policy monetary policy and international
characteristics) Apply metrics in: investment analysis index construction factor models
sum-of-the-parts analysis of corporate structures and detection of asset bubbles Who This Book
Is For Professionals at all levels working in the finance industry especially in fields
related to investment management trading and investment banking who are involved with
valuation and assessing and advising on corporate transactions and interpreting market trends
and university students in finance-related programs at the undergraduate and graduate levels
