Investment Valuation

Auteur

ASWATH DAMODARAN is Professor of Finance at New York University's Leonard N. Stern School of Business. He teaches corporate finance and valuation at leading investment banks. He has been the recipient of numerous awards for outstanding teaching, including the NYU Distinguished Teaching Award, and was named one of the nation's top business school teachers by BusinessWeek. His publications include Damodaran on Valuation, Applied Corporate Finance, The Little Book of Valuation, Investment Philosophies, and The Dark Side of Valuation.

Texte du rabat

THE LATEST EDITION OF THE GOLD STANDARD IN VALUATION TEXTS FROM "THE DEAN OF VALUATION" Investment Valuation: Tools and Techniques for Determining the Value of Any Asset, Fourth Edition, is the definitive and most up-to-date valuation resource for finance professionals and students seeking to price virtually any fungible asset. Award-winning NYU Professor of Finance, Aswath Damodaran, explains the fundamentals of this nuanced subject before diving deep into more advanced applications, including the valuation of start-up firms, options, cryptocurrencies and other digital assets, real estate, private companies, and more. The book explains the wide array of valuation models and frameworks available to you and how to choose the most suitable one for your particular use case. You'll learn to understand-and implement-the latest evidence-based methods for determining the value of an asset using real-world examples, case studies, and tables filled with data from contemporary companies in a variety of industries and regions. Investment Valuation is an essential resource for business and finance professionals seeking a solid understanding of one of the most complex and critical subjects in commerce. It's perfect for analysts, traders, investors, bankers, entrepreneurs, businesspeople, finance executives, and anyone else who needs to understand what an asset-any asset-is worth.

Contenu

DEDICATION PREFACE

Chapter 1

Introduction to Valuation

A Philosophical Basis for Valuation

Pricing versus Valuation

The Bermuda Triangle of Valuation

Market Efficiency

The Role of Valuation

Conclusion

Chapter 2

Approaches to Valuation

Intrinsic Valuation

Pricing or Relative Valuation

Contingent Claim Valuation

Conclusion

Chapter 3

Understanding Financial Statements

The Basic Accounting Statements

Asset Measurement and Valuation

Measuring Financing Mix

Measuring Earnings and Profitability

Measuring Risk

Other Issues in Analyzing Financial Statements

Conclusion

Chapter 4

The Basics of Risk

What Is Risk?

Equity Risk and Expected Return

Alternative Models for Equity Risk

A Comparative Analysis of Equity Risk Models

Models of Default Risk

Conclusion

Chapter 5

Option Pricing Theory and Models

Basics of Option Pricing

Option Pricing Models

Extensions of Option Pricing

Conclusion

Chapter 6

Market Efficiency-Definition, Tests, and Evidence

Market Efficiency and Investment Valuation

What Is an Efficient Market?

Testing Market Efficiency

Cardinal Sins in Testing Market Efficiency

Some Lesser Sins That Can Be a Problem

Evidence on Market Efficiency

Time Series Properties of Price Changes

Market Anomalies

Evidence on Insiders and Investment Professionals

Conclusion

Chapter 7

Riskless Rates and Risk Premiums

The Risk-Free Rate

Equity Risk Premium

Default Spreads on Bonds

Conclusion

Chapter 8

Estimating Risk Parameters and Costs of Financing

The Cost of Equity and Capital

Cost of Equity

From Cost of Equity to Cost of Capital

Best Practices at Firms

Conclusion

Chapter 9

Measuring Earnings

The Lead in: From accounting data to financial information

Adjusting Earnings

Measuring Earnings Power: Clean up and Time Differences

Conclusion

Chapter 10

From Earnings to Cash Flows

The Tax Effect

Reinvestment Needs

Conclusion

Chapter 11

Estimating Growth

The Importance of Growth

Historical Growth

Outsourcing Growth

Fundamental Determinants of Growth

Top-Down Growth: From Revenue Growth to Free Cash Flows

Qualitative Aspects of Growth

Conclusion

Chapter 12

Closure in Valuation: Estimating Terminal Value

Closure in Valuation

The Survival Issue

Closing Thoughts on Terminal Value

Conclusion

Chapter 13

Narrative and Numbers - Story to Value

Valuation as a Bridge

From Story to Numbers: The Process

Narrative and Numbers across the Life Cycle

Story Resets, Changes and Breaks

Conclusion

Chapter 14

Equity Intrinsic Value Models

Equity Valuation

The Dividend Discount Model

The Augmented Dividend Discount Model

Potential Dividend or FCFE Models

FCFE Valuation Versus Dividend Discount Model Valuation

Conclusion

Chapter 15

Firm Valuation: Cost of Capital and Adjusted Present Value Approaches

Free Cash Flow to the Firm

Firm Valuation: The Cost of Capital Approach

Firm Valuation: The Adjusted Present Value Approach

Firm Valuation - Sum of the parts

Effect of Leverage on Firm Value

Conclusion

Chapter 16

Estimating Equity Value Per Share

Value of Nonoperating Assets

Firm Value and Equity Value

Stock-based Compensation

Value Per Share When Voting Rights Vary

Conclusion

Chapter 17

Fundamental Principles of Relative Valuation

Use of Relative Valuation

Standardized Values and Multiples

Four Basic Steps to Using Multiples

Reconciling Relative and Discounted Cash Flow Valuations

Conclusion

Chapter 18

Earnings Multiples

Price-Earnings Ratio

The PEG Ratio

Other Variants on the PE Ratio

Other Variants on the PE Ratio

Enterprise Value to EBITDA Multiple

Conclusion

Chapter 19

Book Value Multiples

Price-to-Book Equity

Value-to-Book Ratios

Tobin'S Q: Market Value/Replacement Cost

Conclusion

Chapter 20

Revenue Multiples and Sector-Specific Multiples

Revenue Multiples

Sector-Specific Multiples

Conclusion

Chapter 21

Valuing Financial Service Firms

Categories of Financial Service Firms

What Is Unique About Financial Service Firms?

General Framework for Valuation

Discounted Cash Flow Valuation

Relative Valuation

The Crisis Effect

Non-bank financial service firms

Conclusion

Chapter 22

Valuing Money Losing Firms

Negative Earnings: Consequences and Causes

Valuing Money-losing Firms

Conclusion

Chapter 23

Valuing Young or Start-Up Firms

Information Constraints

General Framework for Analysis

Value Drivers

Estimation Noise

The Expectations Game

Conclusion

Chapter 24

Valuing Private Firms

What Makes Private Firms Different?

Estimating Valuation Inputs at Private Firms

Valuation Motives and Value Estimates

Valuing Venture Capital and Private Equity Stakes

Pricing Private Businesses

Conclusion

Chapter 25

ACQUISITIONS AND TAKEOVERS

Background on Acquisitions

Steps in an Acquisition

Takeover Valuation: Biases and Common Errors

Structuring the Acquisition

Improving the Odds

Analyzing Management and Leveraged Buyouts

Conclusion

Chapter 26

Valuing Real Estate

Real Versus Financial Assets

Real Estate: The Underfollowed Investment class

Intrinsic Valuation of Real Estate

Comparable/Relative Valuation

Valuing Real Estate Businesses

Conclusion

Chapter 27

Valuing Other Assets

Investment classification

Cash-Flow-Producing Assets

Collectibles

Trophy Assets

Conclusion

Chapter 28

The Option to Delay and Valuation Implications

Real Options: Promise and Pitfalls

The Option to Delay a Project

Valuing a Patent

Natural Resource Options

Other Applications

Conclusion

Chapter 29

The Options to Expand and to Abandon: Valuation Implications

The Opt…