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Cross-Market Valuation with Full Information on the Company’s Capital Structure

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DOI: 10.4236/jmf.2013.33A007    3,973 Downloads   5,630 Views  


Most models for forecasting a company’s value either use only information from single markets or compress information from other markets. We propose a model using a company’s full capital structure including the term structure and type of outstanding debt to assess its future value. We discuss the numerical properties of our model and demonstrate its usefulness when estimating the probability of default as a valuation example.

Conflicts of Interest

The authors declare no conflicts of interest.

Cite this paper

P. Heider and P. Posch, "Cross-Market Valuation with Full Information on the Company’s Capital Structure," Journal of Mathematical Finance, Vol. 3 No. 3A, 2013, pp. 69-75. doi: 10.4236/jmf.2013.33A007.


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