CONTENTS
Part I Strategy, Value and Risk
1. Strategy
1.1 Strategy and value
1.2 The external environment 1.2.1 Technology and innovation
1.2.2 Industry dynamics
1.2.3 Industry and globalization
1.2.4 Industry and climate change 1.3 Transformation and the firm
1.3.1 Innovation and the firm
1.3.2 Industry boundaries
1.3.3 Strategy and the environment
1.3.4 Future Value
Appendix 1 - Classifying industry sectors today
References
2. Value
2.1 Overview
2.2 The accounting foundations
2.2.1 Stocks and flows
2.2.2 Ratio analysis
2.2.3 Residual earnings and free cash flow
2.2.4 Intangible assets and intellectual property
2.2.5 Pro forma analysis
2.3 Corporate Investments
2.3.1 Investment methods
2.3.2 DCF valuation
2.3.3 The Net Present Value Rule
2.3.4 Real Options 2.3.5 Valuing Real Options
2.3.6 Types of Real Options
2.4 Corporate finance
2.4.1 Overview
2.4.2 Theories of firm value
2.4.3 Developments in the theories of firm value
2.5 Optimizing the firm structure
Appendix 2 Modularity
References
3. Risk
3.1 Investment risk
3.2 Corporate risk management
3.3 The risk drivers
3.4 Value and risk
References
Part II Quantitative Analytics
4. Financial statistics
4.1 Time series analysis
4.2 Regression models
4.3 Volatility
4.4 The lognormal distribution
4.5 Volatility and the firm
References
5. Derivatives
5.1 Futures, forwards and options
5.2 The replicating portfolio and risk-neutral valuation
5.3 A model for asset prices
5.4 The Black-Scholes formula
5.5 Numerical techniques
5.5.1 Monte Carlo Simulation
5.5.2 The binomial and trinomial method
References 6. Derivative model applications
6.1 Spot price models
6.1.1 Geometric Brownian motion
6.1.2 Mean reversion
6.1.3 Jumps and seasonal patterns
6.2 Stochastic volatility
6.3 Forward Curve Models
6.3.1 A single factor model for the forward curve
6.3.2 The dynamics of the forward curve
6.3.3 The relationships between forward curve and spot price models
6.4 Convertible bonds
6.5 Compound options
6.6 Model risk References
Part III The analysis of transformation and value
Overview
7. Platforms, data and analytics
7.1 Platforms 7.2 Cloud computing
7.3 Artificial intelligence
7.4 Quantum computing
7.5 Data
7.6 Analytical management
7.7 IT investments
7.8 Patent options
References
8. Energy
8.1 The global energy markets
8.2 Transformation of the energy sector
8.3 Natural gas and renewables
8.4 Energy Statistics
8.4.1 The Schwartz single factor model
8.4.2 Schwartz single factor futures and fo
About the Author:
Jamie Rogers is a finance professional based in New York, USA. He has extensive experience in valuation, market risk management, analytics, and quantitative finance across equities, fixed income, currencies, commodities and energy within investment banking, big four accounting and advisory. He holds a Bachelor of Commerce from the University of NSW, Sydney, Australia.
