Dark Side of Valuation, The: Valuing Young, Distressed, and Complex Businesses, Third edition

16

Volatility Rules: Emerging-Market Companies

The center of gravity for the global economy is shifting from the U.S. and Western Europe to Asia and Latin America. Increasingly, we are being called on to value emerging-market companies as they become larger players in the global economy as well as candidates for investment portfolios. This chapter focuses on issues that, although they are not unique to emerging-market companies, take on a larger role with them. In particular, many of these companies operate in markets with unstable currencies and inflation, as well as significant and shifting country risk. If we add financial statements that are not always informative and weak corporate governance, valuing emerging-market companies can pose serious ...