A Sum & Discount Method of Appraising Firms: An Illustrative Example

C. Magni
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引用次数: 1

Abstract

This paper presents a new way of valuing firms and measuring residual income. The method, originally introduced in Magni (2000a, 2000b, 2000c, 2001), is here renamed lost-capital paradigm. In order to enhance comprehension the presentation relies on a very simple numerical example which shows that the new paradigm of residual income enjoys a property of abnormal earnings aggregation, according to which the NPV (and therefore the market value) of the firm does not change if each residual income changes, as long as the (uncapitalized) sum of all residual incomes do not change. While radically different from the standard residual income, the difference between the two notions is equal to the interest accrued on the past cumulated standard residual incomes, which has interesting implications for incentive compensation.
企业评价的总和贴现法:一个说明性例子
本文提出了一种新的企业价值评估和剩余收益计量方法。该方法最初是在Magni (2000a, 2000b, 2000c, 2001)中引入的,在这里被重新命名为lost-capitalparadigm。为了增强理解,本演示依赖于一个非常简单的数值示例,该示例表明剩余收入的新范式具有异常收益聚合的属性,根据该示例,只要所有剩余收入的(未资本化)总和不变,如果每个剩余收入都发生变化,公司的NPV(因此市场价值)就不会变化。虽然这两个概念与标准剩余收入截然不同,但两者之间的差异等于过去累积的标准剩余收入所产生的利息,这对激励补偿具有有趣的含义。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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