Hailed by financial professionals, professors, and students worldwide as the single best guide of its kind, Valuation provides crucial insights into how to measure, manage, and maximize a company’s value. This longawaited Third Edition has been comprehensively updated and expanded to reflect business conditions in today’s volatile global economy and to provide highly effective ways for managers at every level to create value for their companies.
Hailed by financial professionals, professors, and students worldwide as the single best guide of its kind, Valuation provides crucial insights into how to measure, manage, and maximize a company’s value. This longawaited Third Edition has been comprehensively updated and expanded to reflect business conditions in today’s volatile global economy and to provide highly effective ways for managers at every level to create value for their companies.
In addition to all new case studies, Valuation now includes in-depth coverage on valuing dot.coms, cyclical companies, and companies in emerging markets, along with detailed instructions on how to drive value creation and apply real optionsto corporate valuation. Here is expert guidance that management and investment professionals and students alike have come to trust, including:
Valuation’s acclaimed chapter devoted to insights into the strategic advantages of value-based management
Strategies for multibusiness valuation, and valuation for corporate restructuring, mergers, and acquisitions
International comparisons of the cost of capital, differences in accounting procedures, and how valuation works in different countries
Detailed, actual case studies showing how valuation techniques and principles are applied
Part One Company Value and the Manager’S Mission
1 Why Value Value? 3
2 The Value Manager 17
3 Fundamental Principles of Value Creation 47
4 Metrics Mania:Surviving the Barrage of Value Metrics 55
5 Cash Is King 73
6 Making Value Happen 89
7 Mergers|Acquisitions,and Joint Ventures 111
Part Two Cash Flow Valuation:A Practitioner’S Guide
8 Frameworks for Valuation 131
9 Analyzing Historical Performance 157
10 Estimating the Cost of Capital 201
11 Forecasting Performance 233
12 Estimating Continuing Value 267
13 Calculating and Interpreting the Results 289
Part Three Applying Valuation
14 Multibusiness V_aluation 301
15 Valuing Dot.coms 315
16 Valuing Cyclical Companies 327
17 Valuing Foreign Subsidiaries 337
18 Valuation Outside the United States 357
19 Valuation in Emerging Markets 377
20 Using Option Pricing Methods to Value Flexibility 399
21 Valuing Banks 433
22 Valuing Insurance Companies 455
Appendix A More on the Adjusted Present Value Model 477
Index 485