# Questions tagged [valuation]

The process of determining the price - the value - of an asset.

201 questions
Filter by
Sorted by
Tagged with
37 views

### Pricing / valuing anticipated repayment date

I am a long time lurker, and frankly not a quant, but have deep respect for those that are. I have found myself in a situation dealing with some features on debt that I am trying to figure out how ...
59 views

### Calculating value of vanilla swap after effective date

I'm trying to find the value of a fixed to float interest rate swap using Rateslib library but I'm running into a few issues. I've followed the code exactly as the link here but now I'm trying to ...
• 21
284 views

### Clarifying the Fundamental Difference Between Growth and Value Stocks

The more I think about the fundamental difference between growth and value stocks the more confused I am. Both strategies seem to exploit market mispricing: growth investors target underestimated ...
• 27.5k
36 views

### Calculating FX Forwards Using Spot Prices and Discount Factors for Exotic Currency Pairs

We need to value FX forwards for some exotic currency pairs using a third-party system that does not provide the forward rates. The system can provide spot prices. Is it correct (real) to calculate ...
60 views

• 175
39 views

### Determine if stocks are hurt by rates or recession fear

Looking at a portfolio of growth stocks which traded at high multiples until end of last year. Stocks have been underperforming (no surprise there) but I'm trying to find ways to determine, ...
• 527
282 views

### Bond value as a function of spread change and duration/maturity

I am trying to calculate the change of value in a universe of bonds given a series of shocks to the credit spread of each bond. As a constraint, the initial dataset only contains the spread change for ...
• 1,471
31 views

### Valuation of companies, which belong to each other

There are three companies: A, B and C. A fully belongs to B, B fully belongs to C and C fully belongs to A. Company A has USD 1 mln of cash and no debt. Company B and C each have USD 10 mln of cash ...
• 101
1 vote
137 views

### What is the name and payoff of this exotic option (where the holder can lock in a price)?

An exotic option is described as follows: Let $S_t$ be the underlying at $t$. The holder has the option to lock in the current price during the lifetime of the option, which he does for $S_{t}=50$. ...
• 113
78 views

### Between these bonds, how to find out which is one pricey (Higher valuation) and cheap (Lower valuation)?

Trying to understand, how to find out which of these bonds are cheap and which are expensive? The current spot rate is 8.167%. How do I go about finding the cheap vs expensive bonds especially when ...
• 119
99 views

### Valuation discount rate using risk free interest rate versus inflation rate

Imagine a world where, for a given time period, the expected inflation rate is 10%, but the nominal risk free interest rate over the same period is 5%. Should my starting point - from a discounted ...
1 vote
123 views

### Infering the discounting rate for an illiquid company

Let's say I would like to determine the incremental discounting rate (e.g. as in IFRS-16) for a company $X$ with a rating score of $Y$ and belonging to a sector $Z$. Usually, any data provider such as ...
• 853
223 views

### Valuation of chooser options

The below formula for valuation of chooser options from Hull's book is not making sense to me. Why do we use call value at time T=0 while we use put value using t=0 call value and discount strike and ...
89 views

### Expected return over what time horizon?

In finance, it is common to price things at their discounted expected value. What time horizon is the market generally thought to consider? Is it a "money-weighted" average of expected ...
• 146
1 vote
5k views

### How to attribute daily options P&L between Greek sensitivities [duplicate]

When building a P&L attribution system for options, what is the market convention for attributing daily P&L between delta, gamma, vega, and theta Greeks? I'm particularly interested in how ...
• 439
194 views

### Are Accounts Receivable and Accounts Payable already included in revenue?

I've been following this Udemy course on finance and valuation basics (Link). I am particularly confused when it comes to the cash flow statement part, specifically on how to get Operating Cash Flow (...
98 views

### Floating rate bond valuation and Duration

I would like to know how a floating rate bond will be valued when LIBOR is used to compute the coupon cashflows and the bond is discounted using an OIS rate. Normally I have seen valuation of a FRB ...
428 views

### Using a Swap curve to price Interest rate Swaps

Say we have a 3-m LIBOR IRS (interest rate swap) with quarterly fixed payments (2 year contract), and we want to value this contract (after say 6 months has passed, i.e. there remain 1.5 years to ...
• 39
472 views

### Which Risk Free rate to use?

I am trying to value a food and beverage company using DCF. I have forecasted the short term projections for 10 years and calculated a terminal value there after. But I am confused with which risk ...
1 vote
478 views

### Total Return Swap on Single Govt Bond Marked to Market Calculation

Looking to understand how to value a TRS on single 10y UST during the life of the trade. Here is an example of trade parameters. 10mm constant notional 1-year maturity I am performance leg payer / ...
• 11
1 vote
567 views

### Work out example of Valuation adjustment

Currently, there are many valuation adjustments for the fair price of a derivative instrument, when pricing is based on RFR. One of such adjustment is ...
• 383
1 vote