H. Kent Baker - Equity Markets, Valuation, and Analysis

Library of Congress Cataloging-in-Publication Data:

Names: Baker, H. Kent (Harold Kent), 1944- editor. | Filbeck, Greg, editor. | Kiymaz, Halil, 1964- editor.

Title: Equity markets, valuation, and analysis / H. Kent Baker, Greg Filbeck, Halil Kiymaz.

Description: Hoboken, New Jersey : Wiley, [2020] | Series: Wiley finance series | Includes index.

Identifiers: LCCN 2020021382 (print) | LCCN 2020021383 (ebook) | ISBN 9781119632931 (cloth) | ISBN 9781119632948 (adobe pdf) | ISBN 9781119632924 (epub)

Subjects: LCSH: Stock exchanges. | Valuation.

Classification: LCC HG4551 .E65 2020 (print) | LCC HG4551 (ebook) | DDC 332.63/2042—dc23

LC record available at https://lccn.loc.gov/2020021382

LC ebook record available at https://lccn.loc.gov/2020021383

Cover Design: Wiley

Cover Image: © AnuStudio/Getty Images

A good editor is someone who cares a little less about the author's needs than the reader's .

Dene October

Bringing this book from the idea stage to publication was a team effort. We greatly appreciate the roles played by all participants – some more direct than others. We thank our chapter authors for sharing their knowledge. They painstakingly wrote and then revised each chapter multiple times without complaint. We edited your words but not your message. Without your dedication, this book would not exist.

We also thank the highly talented professionals at John Wiley & Sons, especially Bill Falloon (executive editor), Richard Samson (project editor), and Koushika Ramesh (production editor), for their guidance. We also thank everyone at Cape Cod Compositors, Inc. Additionally, we recognize the support provided by the Kogod School of Business at American University, the Behrend College at Penn State Erie, and the Crummer Graduate School of Business at Rollins College.

Finally, we express gratitude for our families, who have largely been our silent partners in this process. We dedicate this book to Linda and Rory Baker; Janis, Aaron, Andrea, Kyle, and Grant Filbeck; Nilgün and Tunc Kiymaz.

H. Kent Baker, CFA, CMA, is University Professor of Finance at the Kogod School of Business at American University. Professor Baker is an award-winning author/editor of 36 books, including Debt Markets and Investments ; Investment Traps Exposed: Navigating Investor Mistakes and Behavioral Biases ; Financial Behavior: Players, Services, Products, and Markets ; Investor Behavior: The Psychology of Financial Planning and Investing ; and Survey Research in Corporate Finance . He is also the editor of two book series: Financial Markets and Investments (Oxford University Press) and the H. Kent Baker Investments Series (Emerald Publishing). As one of the most prolific finance academics, he has published about 190 refereed academic journal articles and 125 practitioner-oriented articles appearing in such outlets as the Journal of Finance , Journal of Financial and Quantitative Analysis , Financial Management , Journal of Corporate Finance , Financial Analysts Journal , Journal of Portfolio Management , and Harvard Business Review . He has consulting and training experience with more than 100 organizations and has conducted more than 800 training programs in North America and Europe. He is the past president of the Southern Finance Association and its 2019 Distinguished Scholar. Professor Baker holds a BSBA from Georgetown University; an MEd, MBA, and DBA from the University of Maryland; and an MA, MS, and two PhDs from American University.

Greg Filbeck, CFA, FRM, CAIA, CIPM, PRM, is the Samuel P. Black III Professor of Finance and Risk Management at Penn State Behrend, and serves as the director for the Black School of Business. He formerly served as senior vice president of Kaplan Schweser and held academic appointments at Miami University and the University of Toledo, where he served as the Associate Director of the Center for Family Business. Professor Filbeck is an author/editor of 14 books and has published more than 100 refereed academic journal articles in the Financial Analysts Journal , Financial Review , and Journal of Business, Finance, and Accounting , among others. He is the former president of the CFA Society Pittsburgh. Professor Filbeck holds and conducts training worldwide for candidates for the CFA, FRM, and CAIA designations. Professor Filbeck holds a BS from Murray State University, an MS from Penn State University, and a DBA from the University of Kentucky.

Halil Kiymaz, CFA, is Bank of America Professor of Finance at the Crummer Graduate School of Business at Rollins College. Professor Kiymaz maintains an extensive research agenda focusing on international mergers and acquisitions, emerging capital markets, linkages among capital markets of developing economies, IPOs, and financial management of multinationals. Professor Kiymaz has authored or edited five books and has published more than 85 articles in scholarly and practitioner journals. His research has appeared in such outlets as the Journal of Banking and Finance , Financial Review, Global Finance Journal, Journal of Applied Finance, Journal of Economics and Finance, Review of Financial Economics, and Quarterly Journal of Business and Economics . He is the recipient of several research awards, including the McGraw-Hill Irwin Best Paper Award and the Outstanding Research Award at the Global Conference on Business and Finance. Professor Kiymaz also serves on the editorial boards of Journal of Emerging Markets and Journal of Economics, Business, and Finance . He is the former president of the Academy of Financial Services and finance editor of the International Journal of Emerging Markets . Professor Kiymaz received a BS in business administration from the Uludag University, an MBA, an MA in economics, and a PhD in financial economics from the University of New Orleans.

Elif Akben-Selçukis an Associate Professor of Finance at at Gebze Technical University in Kocaeli, Turkey. She teaches undergraduate and graduate courses in accounting and financial management. Professor Akben-Selçuk's research interests include corporate finance, mergers and acquisitions, corporate governance, emerging markets, personal finance, and financial literacy. Her research has appeared in such outlets as Managerial Finance , International Journal of Bank Marketing , International Journal of Emerging Markets , Economics Bulletin , and Psychological Reports, among others. Professor Akben-Selçuk received a BA in business administration, an MA in economics, and a PhD in finance from Bogazici University in Istanbul, Turkey.

Tom Barkley, CFA, FRM, CAIA, ERP, is a Professor of Finance Practice at the Whitman School of Management, Syracuse University, and the Director of the MS in Finance program. His teaching and research are in corporate finance and derivatives. He previously worked for Enron (Research Group) and the Risk Analytics Group at Florida Power & Light. In both cases, his work included pricing exotic options and structuring products for use in the energy markets. Other experience includes retail banking in the United Kingdom, teaching high school mathematics in the Bahamas, and general management of a family-run publishing company. He received an MBA from Thunderbird, the American Graduate School of International Management, and a PhD in finance from the University of Florida.

Christopher J. Barnes, CFA, is a vice president in Deutsche Bank's equity research group on its North America consumer staples team covering the beverages, household and personal care products, food, and tobacco industries. He has broad-based consumer sector experience assessing public equity securities. Before joining Deutsche Bank, he evaluated the hardlines, grocery, and broadlines retailing sectors, along with the media and entertainment sectors, at Telsey Advisory Group. He also analyzed the consumer leisure sector at Oppenheimer & Co. Mr. Barnes received a BBA in finance with high honors from Hofstra University.