of interest rate swaps. Widening credit spreads and increasing market volatility caused mark-to-market increases in the value of credit derivatives. After the crisis their percentage by 52% .Lower volatility within the financial markets, steepening yield curves in major currencies and narrowing credit spreads led to a fall in the fair value of outstanding derivative contracts.
Before the cris
NIMTAAVG – a weighted average of past quarterly ratios of net income to marketvalue of total assets
TLMTA – the ratio of book value of total liabilities to marketvalue of total assets
EXRETAVG – a weighted average of past monthly log returns relative to the S&P 500 value-weighted return
RSIZE – the log ratio of a firm’s market capitalization to that of the S&P 500 i
of shareholders' equity and debt used to finance a company's assets.[1] Closely related to leveraging, the ratio is also known as Risk, Gearing or Leverage. The two components are often taken from the firm's balance sheet or statement of financial position (so-called book value), but the ratio may also be calculated using marketvalues for both, if the company's debt and equity are publicly trade
of an assets’ life.
Gradually decreasing charges in subsequent years.
- It is also called ‘accelerated depreciation method’.
More realistic reflection of condition of assets.
This approach coincides ‘Matching Principle’ well.
F.PER & PBR of DSME
Valuation based on price-earnings multiple
Valuation based on the ratio ofmarket price to book value of Equity
As you see the
value at 31 December 2010.
(In Millions of KRW) Level 1 Level 2 Level 3 Total balance
Short-term derivatives
Available for sale financial assets* -
3,823,284 34,458
49,765 -
326,359 34,458
4,199,358
Total assets 3,823,234 84,233 326,359 4,233,816
Short-term derivatives - 24,638 - 24,638
Total liabilities - 24,638 - 24,638
(*) Investments in Samsung Life Insurance and iMarket Korea,