The valuation process

2021 ◽  
pp. 63-105
Author(s):  
Chris Rispin ◽  
Fiona Haggett ◽  
Carrie de Silva ◽  
Phil Parnham ◽  
Larry Russen
Keyword(s):  
Valuation Process

Pricing spread options by generalized bivariate edgeworth expansion

2017 ◽  
Vol 04 (02n03) ◽  
pp. 1750017
Author(s):  
Edward P. C. Kao ◽  
Weiwei Xie
Keyword(s):  
Edgeworth Expansion ◽  
Price Difference ◽  
Empirical Estimation ◽  
Strike Price ◽  
Closed Form Solutions ◽  
Spread Options ◽  
Valuation Process ◽  
The Difference ◽  
Spread Option ◽  
Underlying Processes

A spread option is a contingent claim whose underlying is the price difference between two assets. For a call, the holder of the option receives the difference, if positive, between the price difference and the strike price. Otherwise, the holder receives nothing. Spread options trade in large volume in financial, fixed-income, commodity, and energy industries. It is well known that pricing of spread options does not admit closed-form solutions even under a geometric Brownian motion paradigm. When price dynamics experience stochastic volatilities and/or jumps, the valuation process becomes more challenging. Following the seminal work of Jarrow and Judd, we propose the use of Edgeworth expansion to approximate the call price. In the spirit of Pearson, we reduce the cumbersome computation inherent in Edgeworth expansion to single numerical integrations. For an arbitrary bivariate price process, we show that once its product cumulants are available, either by virtue of the structural properties of the underlying processes or by empirical estimation using market data, the approach enables analysts to approximate the call price easily. Specifically, the call prices so estimated capture the correlation, skewness, and kurtosis of the two underlying price processes. As such, the approach is useful for approximate valuations based on Lévy-based models.

An Investigation into the Market Valuation Process of Closed-End Country Funds

1994 ◽  
Vol 23 (1) ◽  
pp. 13
Author(s):  
Jeanette N. Medewitz ◽  
Fuad A. Abdullah ◽  
Keith A. Olson
Keyword(s):  
Market Valuation ◽  
Country Funds ◽  
Valuation Process

Mekanisme Penilaian Tanah dan Konsinyasi dalam Kegiatan Pengadaan Tanah (Studi Kasus Terhadap Bidang Tanah yang Mengalami Penolakan dari Pihak yang Berhak pada Pembangunan Bandara Baru Yogyakarta)

Tunas Agraria ◽  
2019 ◽  
Vol 2 (2) ◽  
pp. 60-82
Author(s):  
Setyabella Prima Putri ◽  
Senthot Sudirman ◽  
Rofiq Laksamana
Keyword(s):  
Public Interest ◽  
Qualitative Method ◽  
Land Acquisition ◽  
District Court ◽  
Acquisition Process ◽  
Payment Mechanism ◽  
Valuation Process ◽  
Land Valuation ◽  
Long Time ◽  
Land Assessment

Abstract: Land Acquisition for public interest in Kulon Progo Regency is a procedure that must be implemented before initializing the new airport, which will replace the function of Adisutjipto airport. It facing much rejection during the process, so that it takes long time in completion. That also causing the identification and inventory process to be inhibited so that the land valuation process can’t be done perfectly. Their compensation won’t be given directly to the land owner, but through the consignment procedure that deposited at the District Court. This research is conducted by descriptive qualitative method. The results show that the assessment of the land is done well, although there is a discretionary decision, so that re-assessment is conducted in different time. The payment mechanism of compensation through consignment also done according to procedures, although the requirement of rejection letter from the party who is not eligible can’t be fulfilled, because it can be suspended due to the large interest for the land acquisition process of the new airport. Keywords: land assessment, consignment, land acquisition Intisari: Pembangunan bandara udara baru yang dapat menggantikan fungsi bandara udara Adisutjipto sudah tidak dapat dielakkan lagi. Pembangunan bandara udara baru dilaksanakan melalui prosedur Pengadaan Tanah untuk Kepentingan Umum. Penolakan terhadap pembangunan bandara udara terjadi dalam kegiatan tersebut. Penelitian ini bertujuan untuk mengetahui mekanisme penilaian dan mekanisme konsinyasi terhadap bidang tanah yang mengalami penolakan oleh pihak yang berhak pada kegiatan pengadaan tanah tersebut. Jenis penelitian yang digunakan adalah penelitian deskriptif dengan pendekatan studi kasus dan pendekatan perundang-undangan. Hasil penelitian menunjukkan bahwa dalam pelaksanaan penilaian bidang tanah secara keseluruhan sudah sesuai prosedur yang ada, akan tetapi terdapat putusan diskresi terhadap bidang tanah yang sebelumnya tidak dapat dilakukan penilaian secara keseluruhan kemudian dilakukan penilaian ulang di luar waktu yang telah ditentukan. Mekanisme pembayaran ganti kerugian melalui konsinyasi sudah sesuai dengan peraturan perundang-undangan yang berlaku, hanya dalam proses permohonan registrasi konsinyasi terdapat satu syarat terkait dengan surat penolakan dari pihak yang berhak yang tidak dapat dilampirkan, hal tersebut dapat ditangguhkan mengingat besarnya kepentingan kelancaran proses pengadaan tanah pembangunan bandara udara baru ini. Kata Kunci: penilaian bidang, konsinyasi, pengadaan tanah

The Stock Valuation Process: The Analysts’ View

1984 ◽  
Vol 40 (6) ◽  
pp. 41-48 ◽  
Author(s):  
Lal C. Chugh ◽  
Joseph W. Meador
Keyword(s):  
Stock Valuation ◽  
Valuation Process

scholarly journals Identification and Classification of Real Estate Features for the Purpose of an Algorithm-Based Valuation– Case Study within Szczecin

2019 ◽  
Vol 19 (2) ◽  
pp. 38-55
Author(s):  
Sebastian Kokot ◽  
Sebastian Gnat
Keyword(s):  
Statistical Analysis ◽  
Real Estate ◽  
Point Of View ◽  
Graphical Methods ◽  
Scientific Discussion ◽  
Valuation Process ◽  
Deductive Method ◽  
Research Criteria

Abstract Research background: The article discusses the issue of the identification and measurement of market characteristics of real estate for valuation purposes. This problem is the most difficult stage of the whole valuation process in terms of both a substantive, methodological and analytical basis. Goal: The aim of the research is to outline and explore on the basis of literature studies as well as developed problems to be solved in the process of mass valuation together with the presentation of an exemplary solution. Methodology: In the theoretical part a hypothetical-deductive method which consists of developing a certain hypothesis and deducing its consequences was applied. The empirical section uses the method of scientific discussion among scientists and practicing valuers and, for the presentation of the results; some graphical methods were used for a statistical analysis. Results: As a result of the conducted research, criteria to be used in identifying and classifying market characteristics for the purposes of valuation were identified and a set of market characteristics of properties was developed along with a method of identifying their states for the purposes of mass valuation. Novelty: The article proves that the problem of the identification and classification of market characteristics of real estate for valuation purposes is extremely important from the point of view of the valuation process and the results obtained as a result of it as well. In addition, for some features, it is proposed to develop special measures such as the plot shape attractiveness ratio. This meets the problem of the objective measurement of market features of real estate. In relation to other features, the legitimacy of the expert approach was pointed out.

scholarly journals Valuation of agrifood SMEs. Lessons to be learnt from the stock market

2018 ◽  
Vol 15 (4) ◽  
pp. e0118 ◽  
Author(s):  
Raül Vidal ◽  
Javier Ribal
Keyword(s):  
Stock Market ◽  
Capital Structure ◽  
Small And Medium Enterprises ◽  
Cost Of Equity ◽  
Discounted Cash Flow ◽  
Return On Equity ◽  
Valuation Process ◽  
Two Parameters ◽  
Medium Enterprises ◽  
The Capital Structure

The European agrifood industry is mostly characterized by small and medium enterprises (SMEs); as in 2013, SMEs represented 99.13% of the total number of companies. The valuation of SMEs not listed in any stock market is a complex task since there is not enough information on comparable transactions. When applying discounted cash flow (DCF) models to value private agrifood companies, the capital structure and the cost of equity are two key parameters to be determined. The implications of these parameters in the value of the enterprise are not clear inasmuch as it is not possible to carry out a contrast due, precisely, to the lack of comparables. The main goal of this study is to determine the biases that those two parameters can introduce into the valuation process of an agrifood company. We have used the stock market as a framework wherein to apply a simple fundamental model to the companies of the European food industry in order to obtain three valuation multiples. By means of two bootstrap approaches, the bias induced in the multiples has been assessed for every year from 2002-2013. Results show that the use of the return on equity as cost of equity tends to undervaluation; the use of capital asset pricing model (CAPM) tends to a slight overvaluation, whereas using the total beta induces an undervaluation bias. Moreover, the capital structure shows little influence on the valuation multiples. The conclusions drawn from this paper can be useful for managers and shareholders of privately-held agrifood companies.

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