Residual Income Valuation Valuation: 중앙대학교 경영학부 박창헌 교수 The Concept of Residual Income Calculating Residual Income Calculating Residual Income EVA (Economic Value Added) (Invested Capital) Adjustments to F/S before Calculating EVA EVA (Economic Value Added) MVA (Market Value Added) [book value of invested capital] Calculating EVA and MVA Calculating EVA and MVA Multistage RIM (part 4): Example 40 DDM, FCFE, and RIM, Compared 41 Strengths of Residual Income Models 42 Weaknesses of Residual Income Models ※Clean Surplus Relationship: Ending Book Value = Beginning Book Value + Net Income - Dividends 43 Selection of a Residual Income Model 44 Accounting Issues in Applying RIMs 45 Accounting Issues in Applying RIMs 46 Clean Surplus Violations 47 Clean Surplus Violations 48 Variations from Fair Value 49 Intangible Asset Effects on the Book Value 50 Nonrecurring Items and Other Aggressive Accounting Practices 51 International Accounting Differences 52 Model Price and Market Price 53 This work is protected by copyright laws and is provided solely for the use of instructors in teaching their courses and assessing student learning Dissemination or sale of any part of this work (including on the World Wide Web) will destroy the integrity of the work and is not permitted The work and materials from it should never be made available to students except by instructors using the accompanying texts published by Kaplan, Wiley, McGraw-Hill, etc in their classes All recipients of this work are expected to abide by these restrictions and to honor the intended pedagogical purposes and the needs of other instructors who rely on these materials ! 54 [...]...Uses of Residual Income Models 10 Forecasting Residual Income 11 Forecasting Residual Income: Example 12 Forecasting Residual Income: Example 13 Residual Income Valuation Model 14 Residual Income Valuation Model 15 Computing Intrinsic Value with RIM: Example 16 Computing Intrinsic Value with RIM: Example 17 Computing Intrinsic Value with RIM: Example 18 Single-stage Residual Income Valuation Model... Residual Income Valuation Model 19 Single-stage Residual Income Valuation Model 20 Single-stage Residual Income Valuation Model 21 RI Valuation and Justified P/B Ratio The relation between residual income valuation and the justified price-to-book (P/B) ratio based on forecasted fundamentals 22 Single-stage Residual Income Model: Example 1a 23 Single-stage Residual Income Model: Example 1b 24 Implied Growth... Single-stage Residual Income Model: Example 1b 24 Implied Growth Rate in the Single-stage RIM 25 Calculating Implied Growth Rate: Example 26 Multistage Residual Income Model 27 Multistage Residual Income Model 28 Multistage Residual Income Model 29 Multistage Residual Income Model 30 Multistage RIM (part 1): Example 31 Multistage RIM (part 1): Example 32 Multistage RIM (part 1): Example 33 Multistage RIM (part