The Dark Side of Valuation: Valuing Young, Distressed, and Complex Businesses, Second Edition

The Role of Emerging-Market Companies

At the start of the 1990s, the U.S., Western Europe, and Japan still represented the bulk of the global economy. Asian and Latin American countries may have had high growth potential, but they accounted for only a small portion of world output. In the last two decades, emerging markets, especially India and China, have become much larger players in global economic growth. This section begins by looking at the growing clout of emerging-market companies. Then it examines why the valuation of these companies has become more critical to investors and analysts and lists factors that characterize these companies.

Emerging-Market Companies in the Global Economy

As emerging-market economies have grown, their financial ...