Investment Valuation Tools and Techniques for Determining the Value of Any Asset, 2nd Edition

Author: Aswath Damodaran
Publisher: John Wiley & Sons
ISBN: 9780471414889
Published In: January 2002
Format: Hardback , 1008 pages
Jurisdiction: International ? Disclaimer:
Countri(es) stated herein are used as reference only

New Edition is available now !

Description
Contents
Author

Details

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.

New to this edition:

All examples have been updated, and 10 new chapters will be added. In total, over 200 new pages make it much more comprehensive.
More interactive use of online databases, spreadsheets and other supporting tools, allowing the book to have a close link with real-time valuation exercises.

Features:

Includes case studies.
A widely popular book on valuation, completely revised to exhaustively cover the subject of asset valuation.
Fresh real world examples and new valuation tools added for market sectors that pose complex valuation problems, including dot coms, telecommunication companies, and financial service firms.
More interactive use of online databases, spreadsheets and other supporting tools, allowing the book to have a close link with real-time valuation exercises.
Stronger content on value enhancement measures (such as economic value-added and CFROI), because of their growing popularity.

Introduction to Valuation.
Approaches to Valuation.
Understanding Financial Statements.
The Basics of Risk.
Option Pricing Theory and Models.
Market Efficiency—Definition, Tests and Evidence.
Riskless Rates and Risk Premiums.
Estimating Risk Parameters and Costs of Financing.
Measuring Earnings.
From Earnings to Cash Flows.
Estimating Growth.
Closure in Valuation: Estimating Terminal Value.
Dividend Discount Models.
Free Cash Flow to Equity Discount Models.
Firm Valuation: Cost of Capital and Adjusted Present Value Approaches.
Estimating Equity Value per Share.
Fundamental Principles of Relative Valuation.
Earnings Multiples.
Book Value Multiples.
Revenue Multiples and Sector-Specific Multiples..
Valuing Financial Service Firms.
Valuing Firms with Negative Earnings.
Valuing Young or Start-Up Firms.
Valuing Private Firms.
Acquisitions and Takeovers.
Valuing Real Estate.
Valuing Other Assets.
The Option to Delay and Valuation Implications.
The Option to Expand and to Abandon Valuation Implications.
Valuing Equity in Distressed Firms.
Value Enhancement: A Discounted Cash Flow Valuation Framework.
Value Enhancement: Economic Value Added, Cash Flow Return On Investment, and Other Tools.
Valuing Bonds.
Valuing Futures and Forward Contracts.
Overview and Conclusion.
References.
Index.

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.