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Description of Investment Valuation

Investment Valuation

Tools and Techniques for Determining the Value of Any Asset

Valuation is at the heart of every investment decision, whether that decision is to buy, sell, or hold. But the pricing of any financial asset has become a more complex task in modern financial markets. Now completely revised and fully updated to reflect changing market conditions, Investment Valuation, Second Edition, provides expert instruction on how to value virtually any type of asset–stocks, bonds, options, futures, real assets, and much more.

Noted valuation authority and acclaimed NYU finance professor Aswath Damodaran uses real–world examples and the most current valuation tools, as he guides you through the theory and application of valuation models and highlights their strengths and weaknesses.

Expanded coverage addresses:
∗ Valuation of unconventional assets, financial service firms, start–ups, private companies, dot–coms, and many other traditionally valued assets
∗ Risk in foreign countries and how best to deal with it
∗ Using real option theory and option pricing models in valuing business and equity
∗ The models used to value different types of assets and the elements of these models
∗ How to choose the right model for any given asset valuation scenario
∗ Online real–time valuations that are continually updated at www.damodaran.com

A perfect guide for those who need to know more about the tricky business of valuation, Investment Valuation, Second Edition, will be a valuable asset for anyone learning about this critical part of the investment process.

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Title Information

ISBN:

9780471414902

Pages:

1008 pages

Format:

Paperback

Product Code:

18544

Publisher:

John Wiley & Sons Ltd

Published:

12/02/2002

Edition:

2nd Revised edition

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About Aswath Damodaran

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 Business Week in 1994. In addition, Damodaran teaches training courses in corporate finance and valuation at many leading investment banks. His publications include Damodaran on Valuation; Investment Valuation; Corporate Finance; Investment Management; and Applied Corporate Finance, all published by Wiley, and The Dark Side of Valuation.

Contents of Investment Valuation

1. Introduction to Valuation
2. Approaches to Valuation
3. Understanding Financial Statements
4. The Basics of Risk
5. Option Pricing Theory and Models
6. Market Efficiency - Definition, Tests, and Evidence
7. Riskless Rates and Risk Premiums
8. Estimating Risk Parameters and Costs of Financing
9. Measuring Earnings
10. From Earnings to Cash Flows
11. Estimating Growth
12. Closure in Valuation: Estimating Terminal Value
13. Dividend Discount Models
14. Free Cash Flow to Equity Discount Models
15. Firm Valuation: Cost of Capital and Adjusted Present Value Approaches
16. Estimating Equity Value per Share
17. Fundamental Principles of Relative Valuation
18. Earnings Multiples
19. Book Value Multiples
20. Revenue Multiples and Sector-Specific Multiples
21. Valuing Financial Service Firms
22. Valuing Firms with Negative Earnings
23. Valuing Young or Start-Up Firms
24. Valuing Private Firms
25. Acquisitions and Takeovers
26. Valuing Real Estate
27. Valuing Other Assets
28. The Option to Delay and Valuation Implications
29. The Options to Expand and to Abandon: Valuation Implications
30. Valuing Equity in Distressed Firms
31. Value Enhancement: A Discounted Cash Flow Valuation Framework
32. Value Enhancement: Economic Value Added, Cash Flow Return on Investment, and Other Tools
33. Valuing Bonds
34. Valuing Futures and Forward Contracts
35. Overview and Conclusion

References
Index