Deterministic model, Financial Management

Deterministic Model

After the macroeconomic, industrial and business analysis of the company chosen is done First of all a point estimate for all the input variables in a valuation model is done. These input variables are used to arrive at the valuation of the company using an excel model. Based on the macroeconomic, industrial and company analysis, growth related forecasts are made for the company. These forecast are used to find the valuation of the company using an excel model. This is a parametric deterministic model.

Further it is shown that these input variables are difficult to predict correctly and at the best a range of values can be found. Monte Carlo simulation model is used is to predict how the valuation of the companies varies with the change in input variables.

Posted Date: 2/21/2013 2:43:13 AM | Location : United States







Related Discussions:- Deterministic model, Assignment Help, Ask Question on Deterministic model, Get Answer, Expert's Help, Deterministic model Discussions

Write discussion on Deterministic model
Your posts are moderated
Related Questions
Functions of Derivatives Market: To reduce risk or eliminate risks some ways and methods are there. Risk in the capital market can be reduced by diversification or putting eggs

The minimum interest rate which investors demand for non-treasury securities is represented by the yield offered on the treasury securities. This is why market particip

Evaluate the extent to which the Balanced Scorecard: The Balanced Scorecard has been described as an effective measurement system which enables managers of an organisation to

A treasury strip can be sold in two parts based on its components. When the investor is empowered with a right to receive the coupon payments on sale of its treas

Q. Explain the benefit plan? Cafeteria Plan - A benefit plan maintained by an employer for benefit of the employees underwhich every participant has the opportunity to select t

Market price is used for determining the duration of a mortgage-backed security in the coupon curve duration. This approach to calculate the duration of mortgage-bac

Market Efficiency Though there are various markets present in the financial system, the ease with which the transfer of funds take place depends on the level of efficiency pres

What are the types of theft threats?  Describe the methods to access and overcome theft threats. Types of theft threats - Mass theft, Pilferage theft. Steps to assess threats

Determine the concept of Measuring the Rate of Return The rate of return is total return the investor receives during holding period (the period when security is owned or held

there are 3 compaies i have to find out the price of equity share by using walters and gordons model.