© 2018

Analytical Corporate Valuation

Fundamental Analysis, Asset Pricing, and Company Valuation


Table of contents

  1. Front Matter
    Pages i-xv
  2. Fundamental Analysis of the Company

    1. Front Matter
      Pages 1-1
    2. Pasquale De Luca
      Pages 3-41
    3. Pasquale De Luca
      Pages 43-76
    4. Pasquale De Luca
      Pages 77-116
  3. Risk and Return in the Capital Market

    1. Front Matter
      Pages 117-117
    2. Pasquale De Luca
      Pages 119-164
    3. Pasquale De Luca
      Pages 165-236
    4. Pasquale De Luca
      Pages 237-257
  4. Company Valuation

    1. Front Matter
      Pages 259-259
    2. Pasquale De Luca
      Pages 261-317
    3. Pasquale De Luca
      Pages 319-365
    4. Pasquale De Luca
      Pages 367-397
    5. Pasquale De Luca
      Pages 399-450
    6. Pasquale De Luca
      Pages 451-465

About this book


This book integrates the models employed in the fundamental analysis of a company with the models used by investors in the capital markets to diversify risks and maximize expected returns. The underlying thesis is that the company creates value only if the return on capital invested exceeds the cost of capital, while the objective is to demonstrate how integration of the fields of corporate finance and asset pricing enables comprehensive and accurate company valuation.

Companies can thrive only if they are able to create value for shareholders over time. A company’s value creation and the correct approach to its measurement require two main skills: first, the ability to analyze and evaluate the company’s fundamentals with respect to its business model and its performance over time; and second, knowledge of investors’ models with regard to risk diversification and return maximization from which the cost of capital for the firm is derived. Based on this perspective, the book combines rigorous quantitative analysis with effective use of graphics to aid intuitive understanding.


Company value Corporate value Equity value Debt value Cost of capital Cost of equity Cost of debt Financial dynamics Economic dynamics Strategic formula Asset pricing Risk and return Capital asset pricing model Fundamental analysis Company valuation Equity discounted model Enterprise valuation

Authors and affiliations

  1. 1.Department of Law and Economics of Productive ActivitiesSapienza University of RomeRomeItaly

About the authors

Pasquale De Luca, PhD, is a Researcher and Adjunct Professor at “Sapienza” University of Rome, Italy, where he teaches Business Administration and Finance. His main fields of research are corporate finance and asset pricing, with a specific focus on topics including corporate valuation, capital structure choices and cost of capital, restructuring, mergers and acquisitions, private equity, and planning and control systems for management decisions.

Bibliographic information

Industry Sectors
Finance, Business & Banking