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El. knyga: Investment Valuation: Tools and Techniques for Determining the Value of Any Asset

4.35/5 (789 ratings by Goodreads)
(Stern School of Business, New York University)
  • Formatas: EPUB+DRM
  • Serija: Wiley Finance
  • Išleidimo metai: 16-Mar-2012
  • Leidėjas: John Wiley & Sons Inc
  • Kalba: eng
  • ISBN-13: 9781118206560
  • Formatas: EPUB+DRM
  • Serija: Wiley Finance
  • Išleidimo metai: 16-Mar-2012
  • Leidėjas: John Wiley & Sons Inc
  • Kalba: eng
  • ISBN-13: 9781118206560

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"The definitive source of information on all topics related to investment valuation tools and techniquesValuation is at the heart of any investment decision, whether that decision is buy, sell or hold. But the pricing of many assets has become a more complex task in modern markets, especially after the recent financial crisis. In order to be successful at this endeavor, you must have a firm understanding of the proper valuation techniques. One valuation book stands out as withstanding the test of time among investors and students of financial markets, Aswath Damodaran'sInvestment Valuation.Now completely revised and updated to reflect changing market conditions, this third edition comprehensively introduces investment professionals and students to the range of valuation models available and how to chose the right model for any given asset valuation scenario. This edition includes valuation techniques for a whole host of real options, start-up firms, unconventional assets, distressed companies and privateequity, and real estate. All examples have been updated and new material has been added. Fully revised to incorporate valuation lessons learned from the last five years, from the market crisis and emerging markets to new types of equity investments Includes valuation practices across the life cycle of companies and emphasizes value enhancement measures, such as EVA and CFROI Contains a new chapter on probabilistic valuation techniques such as decision trees and Monte Carlo Simulation Author Aswath Damodaran is regarded as one of the best educators and thinkers on the topic of investment valuation This indispensable guide is a must read for anyone wishing to gain a better understanding of investment valuation and its methods. With it, you can take the insights and advice of a recognized authority on the valuation process and immediately put them to work for you"--

Provided by publisher.

The definitive source of information on all topics related to investment valuation tools and techniques

Valuation is at the heart of any investment decision, whether that decision is buy, sell or hold. But the pricing of many assets has become a more complex task in modern markets, especially after the recent financial crisis. In order to be successful at this endeavor, you must have a firm understanding of the proper valuation techniques. One valuation book stands out as withstanding the test of time among investors and students of financial markets, Aswath Damodaran'sInvestment Valuation.

Now completely revised and updated to reflect changing market conditions, this third edition comprehensively introduces investment professionals and students to the range of valuation models available and how to chose the right model for any given asset valuation scenario. This edition includes valuation techniques for a whole host of real options, start-up firms, unconventional assets, distressed companies and private equity, and real estate. All examples have been updated and new material has been added.

  • Fully revised to incorporate valuation lessons learned from the last five years, from the market crisis and emerging markets to new types of equity investments
  • Includes valuation practices across the life cycle of companies and emphasizes value enhancement measures, such as EVA and CFROI
  • Contains a new chapter on probabilistic valuation techniques such as decision trees and Monte Carlo Simulation
  • Author Aswath Damodaran is regarded as one of the best educators and thinkers on the topic of investment valuation

This indispensable guide is a must read for anyone wishing to gain a better understanding of investment valuation and its methods. With it, you can take the insights and advice of a recognized authority on the valuation process and immediately put them to work for you.

Recenzijos

"Aswath Damodaran's work is always worth reading.... For investors and students of the financial markets who want to embark on serious fundamental analysis, it is critical to understand how to go about valuing stocks and other instruments. There is no short cut.... Damodaran's Investment Valuation explains the hard work part." (Seeking Alpha, May 2012)

Chapter 1 Introduction to Valuation
1(10)
A Philosophical Basis for Valuation
1(1)
Generalities about Valuation
2(4)
The Role of Valuation
6(3)
Conclusion
9(1)
Questions and Short Problems
9(2)
Chapter 2 Approaches to Valuation
11(16)
Discounted Cash Flow Valuation
11(8)
Relative Valuation
19(4)
Contingent Claim Valuation
23(2)
Conclusion
25(1)
Questions and Short Problems
25(2)
Chapter 3 Understanding Financial Statements
27(31)
The Basic Accounting Statements
27(2)
Asset Measurement and Valuation
29(7)
Measuring Financing Mix
36(6)
Measuring Earnings and Profitability
42(5)
Measuring Risk
47(6)
Other Issues in Analyzing Financial Statements
53(2)
Conclusion
55(1)
Questions and Short Problems
55(3)
Chapter 4 The Basics of Risk
58(29)
What is Risk?
58(1)
Equity Risk and Expected Return
59(12)
Alternative Models for Equity Risk
71(5)
A Comparative Analysis of Equity Risk Models
76(1)
Models of Default Risk
77(4)
Conclusion
81(1)
Questions and Short Problems
82(5)
Chapter 5 Option Pricing Theory and Models
87(24)
Basics of Option Pricing
87(2)
Determinants of Option Value
89(1)
Option Pricing Models
90(17)
Extensions of Option Pricing
107(2)
Conclusion
109(1)
Questions and Short Problems
109(2)
Chapter 6 Market Efficiency---Definition, Tests, and Evidence
111(43)
Market Efficiency and Investment Valuation
111(1)
What Is an Efficient Market?
112(1)
Implications of Market Efficiency
112(2)
Necessary Conditions for Market Efficiency
114(1)
Propositions about Market Efficiency
114(2)
Testing Market Efficiency
116(4)
Cardinal Sins in Testing Market Efficiency
120(1)
Some Lesser Sins That Can Be a Problem
121(1)
Evidence on Market Efficiency
122(1)
Time Series Properties of Price Changes
122(8)
Market Reaction to Information Events
130(4)
Market Anomalies
134(8)
Evidence on Insiders and Investment Professionals
142(7)
Conclusion
149(1)
Questions and Short Problems
150(4)
Chapter 7 Riskless Rates and Risk Premiums
154(28)
The Risk-Free Rate
154(5)
Equity Risk Premium
159(18)
Default Spreads on Bonds
177(3)
Conclusion
180(1)
Questions and Short Problems
180(2)
Chapter 8 Estimating Risk Parameters and Costs of Financing
182(46)
The Cost of Equity and Capital
182(1)
Cost of Equity
183(27)
From Cost of Equity to Cost of Capital
210(11)
Best Practices at Firms
221(1)
Conclusion
222(1)
Questions and Short Problems
223(5)
Chapter 9 Measuring Earnings
228(22)
Accounting versus Financial Balance Sheets
229(1)
Adjusting Earnings
230(17)
Conclusion
247(2)
Questions and Short Problems
249(1)
Chapter 10 From Earnings to Cash Flows
250(21)
The Tax Effect
250(8)
Reinvestment Needs
258(10)
Conclusion
268(1)
Questions and Short Problems
269(2)
Chapter 11 Estimating Growth
271(33)
The Importance of Growth
272(1)
Historical Growth
272(10)
Analyst Estimates of Growth
282(3)
Fundamental Determinants of Growth
285(16)
Qualitative Aspects of Growth
301(1)
Conclusion
302(1)
Questions and Short Problems
302(2)
Chapter 12 Closure in Valuation: Estimating Terminal Value
304(19)
Closure in Valuation
304(14)
The Survival Issue
318(2)
Closing Thoughts on Terminal Value
320(1)
Conclusion
321(1)
Questions and Short Problems
321(2)
Chapter 13 Dividend Discount Models
323(28)
The General Model
323(1)
Versions of the Model
324(20)
Issues in Using the Dividend Discount Model
344(1)
Tests of the Dividend Discount Model
345(3)
Conclusion
348(1)
Questions and Short Problems
349(2)
Chapter 14 Free Cash Flow to Equity Discount Models
351(29)
Measuring What Firms Can Return to Their Stockholders
351(6)
FCFE Valuation Models
357(15)
FCFE Valuation versus Dividend Discount Model Valuation
372(4)
Conclusion
376(1)
Questions and Short Problems
376(4)
Chapter 15 Firm Valuation: Cost of Capital and Adjusted Present Value Approaches
380(43)
Free Cash flow to the Firm
380(3)
Firm Valuation: The Cost of Capital Approach
383(15)
Firm Valuation: The Adjusted Present Value Approach
398(4)
Effect of Leverage on Firm Value
402(13)
Adjusted Present Value and Financial Leverage
415(4)
Conclusion
419(1)
Questions and Short Problems
419(4)
Chapter 16 Estimating Equity Value per Share
423(30)
Value of Nonoperating Assets
423(17)
Firm Value and Equity Value
440(2)
Management and Employee Options
442(6)
Value per Share When Voting Rights Vary
448(2)
Conclusion
450(1)
Questions and Short Problems
451(2)
Chapter 17 Fundamental Principles of Relative Valuation
453(15)
Use of Relative Valuation
453(1)
Standardized Values and Multiples
454(2)
Four Basic Steps to Using Multiples
456(10)
Reconciling Relative and Discounted Cash Flow Valuations
466(1)
Conclusion
467(1)
Questions and Short Problems
467(1)
Chapter 18 Earnings Multiples
468(43)
Price-Earnings Ratio
468(19)
The PEG Ratio
487(10)
Other Variants on the PE Ratio
497(3)
Enterprise Value to EBITDA Multiple
500(8)
Conclusion
508(1)
Questions and Short Problems
508(3)
Chapter 19 Book Value Multiples
511(31)
Price-to-Book Equity
511(10)
Applications of Price-Book Value Ratios
521(9)
Use in Investment Strategies
530(2)
Value-to-Book Ratios
532(5)
Tobin's Q: Market Value/Replacement Cost
537(2)
Conclusion
539(1)
Questions and Short Problems
539(3)
Chapter 20 Revenue Multiples and Sector-Specific Multiples
542(39)
Revenue Multiples
542(29)
Sector-Specific Multiples
571(6)
Conclusion
577(1)
Questions and Short Problems
577(4)
Chapter 21 Valuing Financial Service Firms
581(30)
Categories of Financial Service Firms
581(1)
What is Unique about Financial Service Firms?
582(1)
General Framework for Valuation
583(1)
Discounted Cash Flow Valuation
584(15)
Asset-Based Valuation
599(1)
Relative Valuation
599(6)
Issues in Valuing Financial Service Firms
605(2)
Conclusion
607(1)
Questions and Short Problems
608(3)
Chapter 22 Valuing Firms with Negative or Abnormal Earnings
611(32)
Negative Earnings: Consequences and Causes
611(4)
Valuing Negative Earnings Firms
615(24)
Conclusion
639(1)
Questions and Short Problems
639(4)
Chapter 23 Valuing Young or Start-Up Firms
643(24)
Information Constraints
643(1)
New Paradigms or Old Principles: A Life Cycle Perspective
644(2)
Venture Capital Valuation
646(2)
General Framework for Analysis
648(11)
Value Drivers
659(2)
Estimation Noise
661(1)
Implications for Investors
662(1)
Implications for Managers
663(1)
The Expectations Game
663(2)
Conclusion
665(1)
Questions and Short Problems
666(1)
Chapter 24 Valuing Private Firms
667(35)
What Makes Private Firms Different?
667(1)
Estimating Valuation Inputs at Private Firms
668(20)
Valuation Motives and Value Estimates
688(5)
Valuing Venture Capital and Private Equity Stakes
693(2)
Relative Valuation of Private Businesses
695(4)
Conclusion
699(1)
Questions and Short Problems
699(3)
Chapter 25 Aquisitions and Takeovers
702(37)
Background on Acquisitions
702(3)
Empirical Evidence on the Value Effects of Takeovers
705(1)
Steps in an Acquisition
705(19)
Takeover Valuation: Biases and Common Errors
724(1)
Structuring the Acquisition
725(5)
Analyzing Management and Leveraged Buyouts
730(4)
Conclusion
734(1)
Questions and Short Problems
735(4)
Chapter 26 Valuing Real Estate
739(27)
Real versus Financial Assets
739(1)
Discounted Cash Flow Valuation
740(19)
Comparable/Relative Valuation
759(2)
Valuing Real Estate Businesses
761(2)
Conclusion
763(1)
Questions and Short Problems
763(3)
Chapter 27 Valuing Other Assets
766(15)
Cash-Flow-Producing Assets
766(9)
Non-Cash-Flow-Producing Assets
775(2)
Assets with Option Characteristics
777(1)
Conclusion
778(1)
Questions and Short Problems
779(2)
Chapter 28 The Option to Delay and Valuation Implications
781(24)
The Option to Delay a Project
781(8)
Valuing a Patent
789(7)
Natural Resource Options
796(6)
Other Applications
802(1)
Conclusion
802(1)
Questions and Short Problems
803(2)
Chapter 29 The Options to Expand and to Abandon: Valuation Implications
805(21)
The Option to Expand
805(7)
When Are Expansion Options Valuable?
812(3)
Valuing a Firm with the Option to Expand
815(2)
Value of Financial Flexibility
817(3)
The Option to Abandon
820(3)
Reconciling Net Present Value and Real Option Valuations
823(1)
Conclusion
823(1)
Questions and Short Problems
824(2)
Chapter 30 Valuing Equity in Distressed Firms
826(15)
Equity in Highly Levered Distressed Firms
826(2)
Implications of Viewing Equity as an Option
828(3)
Estimating the Value of Equity as an Option
831(5)
Consequences for Decision Making
836(3)
Conclusion
839(1)
Questions and Short Problems
839(2)
Chapter 31 Value Enhancement: A Discounted Cash Flow Valuation Framework
841(28)
Value-Creating and Value-Neutral Actions
841(1)
Ways of Increasing Value
842(17)
Value Enhancement Chain
859(5)
Closing Thoughts on Value Enhancement
864(1)
Conclusion
865(1)
Questions and Short Problems
865(4)
Chapter 32 Value Enhancement: Economic Value Added, Cash Flow Return on Investment, and Other Tools
869(25)
Economic Value Added
870(14)
Cash Flow Return on Investment
884(6)
A Postscript on Value Enhancement
890(1)
Conclusion
891(1)
Questions and Short Problems
891(3)
Chapter 33 Probabilistic Approaches in Valuation: Scenario Analysis, Decision Trees, and Simulations
894(31)
Scenario Analysis
894(5)
Decision Trees
899(9)
Simulations
908(11)
An Overall Assessment of Probabilistic Risk-Assessment Approaches
919(2)
Conclusion
921(1)
Questions and Short Problems
921(4)
Chapter 34 Overview and Conclusion
925(14)
Choices in Valuation Models
925(1)
Which Approach Should You Use?
926(3)
Choosing the Right Discounted Cash Flow Model
929(4)
Choosing the Right Relative Valuation Model
933(4)
When Should You Use the Option Pricing Models?
937(1)
Conclusion
938(1)
References 939(15)
Index 954
ASWATH DAMODARAN is Professor of Finance at New York University's Leonard N. Stern School of Business. He has been the recipient of numerous awards for outstanding teaching, including the NYU university-wide Distinguished Teaching Award, and was named one of the nation's top business school teachers by BusinessWeek in 1994. In addition, Damodaran teaches training courses in corporate finance and valuation at many leading investment banks. His publications include Damodaran on Valuation: Security Analysis for Investment and Corporate Finance; Investment Valuation; Corporate Finance; Investment Management; and Applied Corporate Finance, all published by Wiley, and The Dark Side of Valuation.