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 Setting
This chapter looks at two groups of companies. The first group is cyclical companies—those whose fortunes rest in large part on how the economy is doing. The second group is commodity companies. They derive their earnings from producing commodities that may become inputs to other companies in the economy (oil, iron ore) or be desired as investments in their own right (gold, platinum, diamonds).
Cyclical Companies
We usually define cyclical firms in relation to the overall economy. Firms that move up and down with the economy are considered cyclical companies. There are two ways to identify these firms:
We can categorize industry sectors into cyclical and noncyclical, based on historical performance, and assume that all firms in ...
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I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.Amir M.
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.