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.
- 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...
- 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,...
- 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...
- Articles 2007-10-29
- 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...
- 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...
- External links 2008-08-17
- Freddie Mac Q4 2007 Earnings Call Transcript
- Question-and-Answer SessionOperator And once again ladies and gentlemen if you would like to ask a question please press the star then one on your touchtone phone, you’ll hear a tone indicating you’ve been placed in queue. If your question gets answered or you wish to remove yourself...
- Earnings calls 2008-02-28
- Analyzing Engineering Projects Using Real Options -- Intelligent Investments In The Face Of Uncertainty
- Boeing performs extensive financial modeling, a requirement given the technical complexity and the long life cycle of our products. One of the techniques we use is called ""Real Options,"" an advanced financial modeling technique that extends standard net present value NPV to evaluate risk-adjusted return on investment and cost-versus-risk...
- White papers 2003-01-01
- The Price Is (Almost) Right
- Most previous research tests market efficiency and asset pricing models using average abnormal trading profits on dynamic trading strategies, and typically rejects the joint hypothesis. This article measures the ability of a simple risk model and the efficient-market hypothesis to explain the level of stock prices. First, it finds that...
- White papers 2003-12-01
- Gazprom Offers Investors Tax Risk Diversification
- Kurt Wulff McDep Associates submits: Battered more than most of our stocks by the global market meltdown, buy-recommended Gazprom (OGZPY.PK) retains its long-term resource appeal while tax policy in Russia may be turning more favorable for oil and gas companies. Third quarter 2008 results reported on March 3 scored...
- External links 2009-04-08
- Devon Energy: Harvesting Accounting Losses
- Kurt Wulff McDep Associates submits: Estimated Net Present Value (NPV) of $116 a share is more than 90% higher than stock price for low-debt, buy-recommended Devon Energy DVN. Released today, fourth quarter results displayed lower unlevered cash flow Ebitda driven by crude oil and natural gas prices. Our valuation...
- External links 2009-03-11
- Encana Turns Out Steady Production and Reserves
- Kurt Wulff McDep Associates submits: Estimated Net Present Value (NPV) of $75 a share is more than 70% higher than stock price for moderate-debt, buy-recommended Encana Corporation ECA. Released today, fourth quarter results displayed lower unlevered cash flow Ebitda driven by crude oil and natural gas prices. Differentials between...
- External links 2009-03-20
- Exxon Mobil: A Strong Performer in Tough Times
- Kurt Wulff McDep Associates submits: Buy-recommended ExxonMobil XOM offers unlevered appreciation potential of 32% to a McDep Ratio of 1.0 and levered appreciation potential of 35% to Net Present Value (NPV) of $90 a share. During the first quarter, according to results released today, XOM generated cash from oil...
- External links 2009-05-31
- Downstream Refining Helps Marathon Oil's Cash Flow
- Kurt Wulff McDep Associates submits: Hold-rated Marathon Oil MRO offers unlevered appreciation potential of 54% to a McDep Ratio of 1.0 and levered appreciation potential of 82% to Net Present Value (NPV) of $54 a share. During the first quarter, according to results released today, MRO generated cash from...
- External links 2009-05-31
- Chevron Creates Energy Wealth Globally
- Kurt Wulff McDep Associates submits: Hold-rated Chevron CVX offers unlevered appreciation potential of 39% to a McDep Ratio of 1.0 and levered appreciation potential of 48% to Net Present Value (NPV) of $98 a share. During the first quarter, according to results released today, Chevron generated cash from oil...
- External links 2009-06-02
- Encore Acquisition Calls Sale Off
- Kurt Wulff McDep Associates submits: Rapidly changing market conditions caused management of buy-recommended Encore Acquisition Company EAC to end the process it had announced that might have resulted in the sale of the company. In anticipation, stock price reached estimated net present value [NPV] of $75 a share, but...
- External links 2008-09-09
- Devon Energy Excited About Haynesville Shale Potential
- Kurt Wulff McDep Associates submits: Our strongest buy recommendation among large independent producers, Devon Energy DVN is part of the legacy of Chairman Emeritus John W. Nichols who passed away on August 3. Mr. Nichols was a pioneer in developing San Juan Basin natural gas using funds obtained from...
- External links 2008-09-10
- Cimarex Energy Believes 10% Growth Is Sustainable
- Kurt Wulff McDep Associates submits: Buy-recommended Cimarex Energy XEC, with estimated net present value [NPV] of $100 a share, offers portfolio representation about two-thirds in U.S. natural gas and one-third in crude oil production at a low McDep Ratio. On May 13 we raised NPV from $85 a share...
- External links 2008-09-10
- PetroChina's Sacrifice Acknowledged
- Kurt Wulff McDep Associates submits: Buy-recommended PetroChina PTR, with estimated net present value [NPV] of $220 a share, offers portfolio representation mainly in crude oil production and non-U.S. domicile at a low McDep Ratio. First half results reported today disclosed the effect of price controls on refined products that...
- External links 2008-09-22
- Ct. D. 2073
- Rate Under Section 7520 for April 2002 Applicable federal rate for determining the present value of an annuity, an interest for life or a term of years, or a remainder or reversionary interest 5.6% Section 1288.-Treatment of Original Issue Discounts on Tax-Exempt Obligations The adjusted applicable federal short-term, midterm, and...
- Research articles 2002-04-08
