Cross-Market Valuation with Full Information on the Company’s Capital Structure ()
ABSTRACT
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.
Share and Cite:
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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