BNET Business Dictionary

Business Definition for: Adjusted Present Value

where the capital structure of a company is complex, or expected to vary over time, discounted cash flows may be separated into (i) those which relate to operational items, and (ii) those associated with financing. This treatment enables assessment to be made of the separate features of each area.
Abbr. APV

Additional Resources

Valuing a Leveraged Buy-Out: The Expansion of the Adjusted Present Value by Means of the Real Options Approach: The paper demonstrates that valuation of a leveraged buy-out may be strongly enhanced when the flexibility, that the buyer-investor is willing to bring in managing the target firm through the post-merger value creation initiatives, is assessed by integrating the traditional Adjusted Present Value by means of the Real Options Approach.; Tags: Mean, University Of Rome, Investment, Finance; White papers 2004-06-11
Petro-Canada / Suncor Offers Attractive Long Term Value: Kurt Wulff McDep Associates submits: Shareholders of hold-rated Petro-Canada PCZ are offered a stock price premium of a minimum 20% by hold-rated Suncor Energy SU to form Canada’s largest oil and gas company. The new entity would offer attractive long-term value at a McDep Ratio of 0.52 and estimated...; Tags: Energy, Kurt Wulff, Suncor Energy; External links 2009-04-21
Canadian Natural Resources Offers Hidden Value in Hidden Oil: Kurt Wulff McDep Associates submits: Hold-rated Canadian Natural Resources CNQ offers unlevered appreciation potential of 63% to estimated net present value (NPV) of $85 a share. On October 28, we reset NPV from $124 a share on the basis of a long-term oil price assumption of $75 a barrel,...; Tags: Energy, Kurt Wulff; External links 2008-12-19
Performing a Cost/Benefit Analysis: When you've put a lot of time and effort into developing an idea for a new project or initiative, you may be eager to get it approved and underway. Before you can get started, though, you must convince the decision-makers the project is worthwhile by determining its economic viability—which you...; Tags: BNET Editorial, analysis, financial, cost control, benefit, technique, job, tool; Articles 2007-10-29
BP Trending Up: Kurt Wulff McDep Associates submits: Buy-recommended BP plc BP offers unlevered appreciation potential of 29% to a McDep Ratio of 1.0 where stock price would equal Net Present Value (NPV) of $72 a share. On July 14 we reduced NPV from $74 when we reduced estimated Present Value of...; Tags: Energy, Kurt Wulff; External links 2009-08-24

Estimating Cost of Capital Using Bottom-up Betas: "Every business must assess where to invest its funds and regularly reevaluate the quality and risk of its existing investments. Investment theory specifies that firms should invest in assets only if they expect them to earn more than their risk-adjusted hurdle rates. Knowing a business cost of capital allows a...; Tags: Financing, Economic Value Added, Certified Public Accountant, Investment Theory, Economic Value-Added Analysis, Investment, Financial Accounting, Finance, Managerial Accounting; White papers 2003-05-01
Restoring Credibility to Ambac and MBIA: Tom Armistead submits: Readers are familiar with my opinion on the proper valuation of Ambac ABK and MBIA MBI. GAAP metrics are not useful: the non-GAAP adjusted book value is the proper measure of their worth, and share prices should recover to that level over the next several years. The...; Tags: Financial, Ambac Financial Group Inc., MBIA Inc.; External links 2008-08-17
ConocoPhillips: Positioned for Recovery: Kurt Wulff McDep Associates submits: Buy-recommended ConocoPhillips COP offers unlevered appreciation potential of 81% to a McDep Ratio of 1.0 where stock price would equal Net Present Value (NPV) of $105 a share. On July 14 we reduced NPV from $109 when we reduced estimated Present Value of North...; Tags: Energy, Kurt Wulff, ConocoPhillips Co.; External links 2009-08-25
Royal Dutch Shell Gets More Efficient in Exploration and Production: Kurt Wulff McDep Associates submits: Buy-recommended Royal Dutch Shell plc (RDS.A) offers unlevered appreciation potential of 37% to a McDep Ratio of 1.0 where stock price would equal Net Present Value (NPV) of $79 a share. On July 14 we reduced NPV from $80 when we reduced estimated Present...; Tags: Energy, Kurt Wulff; External links 2009-08-26
Exxon Mobil's Upstream Volume Growing Despite Natural Gas Seasonality: Kurt Wulff McDep Associates submits: Buy-recommended ExxonMobil XOM offers unlevered appreciation potential of 22% to a McDep Ratio of 1.0 where stock price would equal Net Present Value (NPV) of $89 a share. On July 14 we reduced NPV from $90 when we reduced estimated Present Value of North...; Tags: Energy, Kurt Wulff, Exxon Mobil Corp.; External links 2009-09-01
Anadarko Petroleum Opens New Frontier in West Africa: Kurt Wulff McDep Associates submits: Buy-recommended Anadarko Petroleum APC offers unlevered appreciation potential of 11% to a McDep Ratio of 1.0 where stock price would equal Net Present Value (NPV) of $59 a share. On July 14 we reduced NPV from $70 when we reduced estimated Present Value of...; Tags: Energy, Kurt Wulff, Anadarko Petroleum Corp.; External links 2009-09-09
Devon Price Shifts to Uptrend: Kurt Wulff McDep Associates submits: Buy-recommended Devon Energy DVN offers unlevered appreciation potential of 45% to a McDep Ratio of 1.0 where stock price would equal Net Present Value (NPV) of $98 a share. On July 14 we reduced NPV from $116 when we reduced estimated Present Value of...; Tags: Energy, Kurt Wulff, Devon Energy Corp.; External links 2009-09-10
Berry Petroleum Is Back on Track: Kurt Wulff McDep Associates submits: Hold-rated Berry Petroleum BRY offers unlevered appreciation potential of 18% to a McDep Ratio of 1.0 where stock price would equal Net Present Value (NPV) of $35 a share. On July 14 we reduced NPV from $40 when we reduced estimated Present Value of...; Tags: Energy, Kurt Wulff, Berry Petroleum Co.; External links 2009-09-11
Canadian Natural Resources Sees First Welcome Cash from Horizon: Kurt Wulff McDep Associates submits: Buy-recommended Canadian Natural Resources CNQ offers unlevered appreciation potential of 20% to a McDep Ratio of 1.0 where stock price would equal Net Present Value (NPV) of US $80 a share. On July 14 we reduced NPV from US$85 when we reduced estimated Present...; Tags: Energy, Kurt Wulff; External links 2009-09-11
EOG Resources Offers Low Debt Natural Gas Growth: Kurt Wulff McDep Associates submits: Buy-recommended EOG Resources EOG offers unlevered appreciation potential of 16% to a McDep Ratio of 1.0 where stock price would equal Net Present Value NPV of $92 a share. On July 14 we reduced NPV from $110 when we reduced estimated Present Value of...; Tags: Energy, Kurt Wulff, EOG Resources Inc.; External links 2009-09-12
Cimarex Energy Doing Well with the Cana Shale: Kurt Wulff McDep Associates submits: Buy-recommended Cimarex XEC offers unlevered appreciation potential of 19% to a McDep Ratio of 1.0 where stock price would equal Net Present Value (NPV) of $46 a share. On July 14 we reduced NPV from $55 when we reduced estimated Present Value of North...; Tags: Energy, Kurt Wulff, Cimarex Energy Co.; External links 2009-09-12
Penn West Energy Trust's Priorities: Reduce Debt, Exploit Assets: Kurt Wulff McDep Associates submits: Hold-rated Penn West Energy Trust PWE offers unlevered appreciation potential of 25% to a McDep Ratio of 1.0 where stock price would equal Net Present Value (NPV) of US $19 a share. On July 14 we reduced NPV from US$25 to US$23 when we...; Tags: Energy, Kurt Wulff; External links 2009-09-15
Gazprom Reemerges as Natural Gas Giant: Kurt Wulff McDep Associates submits: Buy-recommended Gazprom (OGZPY.PK) offers unlevered appreciation potential of 200% to a McDep Ratio of 1.0 where stock price would equal Net Present Value (NPV) of $64 a share. Released today, results according to international accounting for the quarter ended March 31, 2009 exceeded our...; Tags: Energy, Kurt Wulff; External links 2009-09-21
Cimarex Energy's Drilling Picks Up: Kurt Wulff McDep Associates submits: Buy-recommended Cimarex Energy XEC has built up its best backlog of drilling projects while maintaining low debt, minimal hedging and generating cash at the highest rate of any stock in our income and small cap coverage. Shale gas in western Oklahoma, a 3-D seismic...; Tags: Energy, Kurt Wulff, Cimarex Energy Co.; External links 2009-10-27
Cimarex Energy Exercises Capital Discipline: Buy-recommended Cimarex Energy XEC offers unlevered appreciation potential of 68% to estimated net present value NPV of $70 a share. On October 28, we reset NPV from $100 a share on the basis of a long-term oil price assumption of $75 a barrel, down from $100. Patience may be necessary...; News items 2009-08-07

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