Book description
The definitive guide to valuation written by a who's who of today's top practitioners
The Valuation Handbook differs significantly from other related books on this topic because the contributors are practitioners, academics, and investment firms that explain how they value companies and other assets. It concentrates on specific and innovative valuation techniques, rather than the theoretical approaches more generally accepted and discussed. Given the extreme volatility of the stock market, valuation is a critical issue for analysts, investors, and businesses. Here, various professional contributors explain how their firms approach the valuation process, while academic contributors share their valuation consulting and research experience.
Examines how to value assets in today's dynamic market setting
Offers a broad spectrum of ideas from some of the top practitioners and academics in this field
Highlights state-of-the-art approaches to company valuation
Filled with in-depth insights and expert advice, The Valuation Handbook puts this difficult discipline in perspective.
Table of contents
- Title Page
- Copyright Page
- Dedication
- Preface
- CHAPTER 1 - Two Frameworks for Understanding Valuation Models
-
CHAPTER 2 - The Value Edge
- VALUATION DECISIONS ARE MADE DIFFERENTLY BY DIFFERENT PEOPLE
- TECHNIQUES OF COMMUNICATING VALUE CAN DEMONSTRATE A COMMITMENT TO VALUE BUILDING
- ANALYSTS BEWARE: ONCE-SUCCESSFUL PUBLIC COMPANIES CAN LOSE THEIR WAY
- INCENTIVE COMPENSATION TECHNIQUES BASED ON VALUE ARE BETTER
- VALUATION TECHNIQUES FOR PRIVATE COMPANIES ARE ALSO MORE DATA DRIVEN
- ESTIMATES OF VALUE MAY DIFFER DEPENDING ON DATA INTEGRITY
- FINANCE THEORY AND CORPORATE VALUE
- THE VALUE EDGE BEGINS AT THE STRATEGIC BUSINESS UNIT LEVEL
- THE WATERFALL OF VALUE IDENTIFIES VALUE CREATORS AND DESTROYERS
- BETTER VALUATION FRAMEWORKS PROVIDE DISCIPLINE
- THE VALUE JOURNEY HAS MANY STEPS ALONG THE WAY
- ACKNOWLEDGMENTS
- REFERENCES
- CHAPTER 3 - Applying a Systems Mindset to Stock Valuation
-
CHAPTER 4 - Comparing Valuation Models
- LITERATURE REVIEW
- BRIEF DESCRIPTION OF THE VALUATION MODELS THAT ARE COMPARED
- AN EXPERT SYSTEM THAT DOES VALUATION
- GOODNESS OF FIT: INITIAL SAMPLE (1,395 VALUATIONS 1993 TO 2000)
- TESTS OF DCF IN A HOLDOUT SAMPLE (NEW SAMPLE 2000-2008)
- CONVERGENCE TESTS
- STRAW MAN HORSE RACES (COMPARISON OF THREE MODELS)
- CONVERGENCE
- CONCLUSION
- NOTES
- REFERENCES
- CHAPTER 5 - Developing an Automated Discounted Cash Flow Model
- CHAPTER 6 - The Essence of Value-Based Finance
- CHAPTER 7 - Residual Income and Stock Valuation Techniques
-
CHAPTER 8 - Modern Tools for Valuation
- IDENTIFYING THE PROBLEM
- WHAT DRIVES STOCK MARKET VALUATION ?
- OUR VALUATION METHODOLOGYâPROVIDING A SOLUTION
- THEORY MEETS PRACTICE
- GENERAL NOTES ON STOCK PICKING
- APPENDIX A: DEFINITIONS OF KEY TERMS USED IN OUR VALUATION MODELS
- APPENDIX B : HOW OUR DYNAMIC DISCOUNTED CASH FLOW MODEL WORKS
- APPENDIX C: EXPLANATION OF RISK/REWARD RATING SYSTEM
- APPENDIX D : NOPAT, INVESTED CAPITAL, AND WACC CALCULATIONS FOR ACCENTURE
- NOTES
-
CHAPTER 9 - The Economic Profit Approach to Securities Valuation
- BASICS OF ECONOMIC PROFIT VALUATION
- ECONOMIC PROFIT MODELS
- RECONCILIATION OF EVA MODELS
- COST OF CAPITAL EFFECTS
- PRICING IMPLICATIONS
- EVA ACCOUNTING ADJUSTMENTS
- EVA APPLICATION: JLG DOW FUNDAMENTAL
- EVA LINK TO FCF VALUATION
- FCF VALUATION: HORIZON YEARS
- FCF VALUATION: RESIDUAL YEARS
- SUMMARY
- NOTES
- REFERENCE
- CHAPTER 10 - Valuation for Managers
- CHAPTER 11 - The LifeCycle Returns Valuation System
- CHAPTER 12 - Morningstarâs Approach to Equity Analysis and Security Valuation
- CHAPTER 13 - Valuing Real Options
- CHAPTER 14 - GRAPES
- CHAPTER 15 - Portfolio Valuation
-
CHAPTER 16 - The Valuation of Health Care Professional Practices
- BASIC ECONOMIC VALUATION TENETS
- THE VALUE PYRAMID
- BUY OR BUILD? VALUE AS INCREMENTAL BENEFIT
- STANDARD OF VALUE AND PREMISE OF VALUE
- VALUATION ADJUSTMENTS FOR RISK
- CLASSIFICATION OF ASSETS AND DETERMINATION OF GOODWILL
- IMPACT OF COMPETITIVE FORCES
- VALUATION APPROACHES, METHODS, AND TECHNIQUES
- ANALYSIS OF RISK
- LEVEL OF VALUE: DISCOUNTS AND PREMIUMS
- CONCLUSION
- NOTES
- CHAPTER 17 - Valuing Dental Practices
-
CHAPTER 18 - Measures of Discount for Lack of Marketability and Liquidity
- PUBLICLY TRADED EQUIVALENT VALUE
- DISCOUNTS FOR LACK OF MARKETABILITY AND DISCOUNT FOR LACK OF LIQUIDITY
- BENCHMARKING METHODS
- EMPIRICAL STUDIES
- LIQUIDITY AS A PRICING FACTOR
- DISTINCTION BETWEEN HOLDING PERIOD AND LIQUIDATION PERIOD
- QUANTITATIVE APPROACHES BASED ON CAPM AND TIME VALUE
- HISTORICAL MARKET LIQUIDITY STATISTICS
- PRICE PRESSURE AND MARKET FAILURE
- MEASURING ASSET LIQUIDITY
- APPLICATION OF TIME/VOLATILITY (OPTION) MODELS TO DISCOUNT FOR LACK OF LIQUIDITY
- THREE OPTION BASED MODELS
- BLACK-SCHOLES PUT (BSP)
- AVERAGE PRICE ASIAN PUT (AAP)
- LOOK BACK PUT (LBP)
- CONCLUSIONS
- REFERENCES
- CHAPTER 19 - An Economic View of the Impact of Human Capital on Firm Performance and Valuation
- CHAPTER 20 - EBITDA
-
CHAPTER 21 - Optimizing the Value of Investor Relations
- INVESTOR RELATIONS AS A SERVICE FUNCTION
- THE INVESTMENT RELATIONS OFFICER AS THE RESIDENT INVESTMENT MARKET EXPERT
- BUILDING INVESTOR RESPECT AS WELL
- ITâS ALL ABOUT INFORMATION OF VALUE
- THE INFORMATION ADVANTAGE
- WORKING WITH ONE KEYINVESTOR AT A TIME
- WORKING WITH THE PRIMARY INVESTORS
- WHAT IT TAKES TO DO THE JOB
- IDENTIFYING THE INFORMATION THAT DETERMINES INTRINSIC VALUE
- FOCUS ON THE VALUE DRIVERS
- LINKING INTRINSIC VALUE TO STOCK PRICE
- NUMEROUS VITAL LESSONS FROM THIS BOOK
- WRAPPING IT UP
- NOTE
- REFERENCES
- CHAPTER 22 - Lower Risk and Higher Returns
-
CHAPTER 23 - Common Themes and Differences
- DOES INTRINSIC VALUE HAVE ANY MEANING?
- METHODOLOGIES: MARK TO MARKET, MARK TO MODEL
- ILLIQUIDITY CRISES AND MARKET MELTDOWNS: EFFECT ON QUANTITATIVE STRATEGIES
- DISCOUNTED CASH FLOW METHODOLOGIES
- APPENDIX A: FINANCIAL MANAGEMENT ASSOCIATION PRACTITIONER DEMAND DRIVEN ACADEMIC RESEARCH INITIATIVE (FMA PDDARI)
- APPENDIX B:EXAMPLES OF ASSUMPTIONS AND THEORIES DESERVING DEBATE AND EMPIRICAL QUANTIFICATION
- REFERENCES
- About the Editors
- About the Contributors
- Index
Product information
- Title: The Valuation Handbook: Valuation Techniques from Today's Top Practitioners
- Author(s):
- Release date: November 2009
- Publisher(s): Wiley
- ISBN: 9780470385791
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