Discounted Cash Flow A Theory of the Valuation of Firms

''Compared with the huge number of books on pragmatic approaches to discounted cash flow valuation, there are remarkably few that lay out the theoretical underpinnings of this technique. Kruschwitz and Löffler bring together the theory in this area in a consistent and rigorous way that should be useful for all serious students of the topic.''

Ian Cooper, London Business School

''This treatise on the market valuation of corporate cash flows offers the first reconciliation of conventional cost of capital valuation models from the corporate finance literature with state pricing (or risk neutral pricing) models subsequently developed on the basis of multi period no arbitrage theories. Using an entertaining style, Kruschwitz and Löffler develop a precise and theoretically consistent definition of cost of capital , and provoke readers to drop vague or contradictory alternatives.''

Darrell Duffie, Stanford University

''Handling firm and personal income taxes properly in valuation involves complex considerations. This book offers a new, precise, clear and concise theoretical path that is pleasant to read. Now it is the practitioners task to translate this approach into real world applications!''

Wolfgang Wagner, PricewaterhouseCoopers

''It is an interesting book, which has some new results and it fills a gap in the literature between the usual undergraduate material and the very abstract PhD material in such books as that of Duffie (Dynamic Asset Pricing Theory). The style is very engaging, which is rare in books pitched at this level.''

Martin Lally, University of Wellington