July 2009
Intermediate to advanced
600 pages
19h 50m
English
book
The Dark Side of Valuation: Valuing Young, Distressed, and Complex Businesses, Second Edition
by Aswath Damodaran
Content preview from The Dark Side of Valuation: Valuing Young, Distressed, and Complex Businesses, Second Edition
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The Ubiquity of Relative Valuation
Notwithstanding the focus on discounted cash flow valuation in classrooms and in theory, evidence exists that most assets are valued on a relative basis. In fact, consider the following:
Most equity research reports are based on multiples. Price/earnings (PE) ratios, enterprise value to earnings before interest, taxes, depreciation, and amortization (EBITDA), price, and price-to-sales ratios are but a few examples. In a study of 550 equity research reports in early 2001, relative valuations outnumbered discounted valuations almost ten to one.[1] While many equity research reports included the obligatory cash flow tables, values were estimated and recommendations were made by looking at comparable firms and ...
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I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.