{"product_id":"investment-valuation-9781118130735","title":"Investment Valuation","description":"\u003cb\u003eBook Synopsis\u003c\/b\u003e\u003cbr\u003eThe definitive source of information on all topics related to investment valuation tools and techniques   Valuation is at the heart of any investment decision, whether that decision is buy, sell or hold. But the pricing of many assets has become a more complex task in modern markets, especially after the recent financial crisis.\u003cbr\u003e\u003cbr\u003e\u003cb\u003eTable of Contents\u003c\/b\u003e\u003cbr\u003e\u003cp\u003e\u003cb\u003eChapter 1 Introduction to Valuation 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eA Philosophical Basis for Valuation 1\u003c\/p\u003e \u003cp\u003eGeneralities about Valuation 2\u003c\/p\u003e \u003cp\u003eThe Role of Valuation 6\u003c\/p\u003e \u003cp\u003eConclusion 9\u003c\/p\u003e \u003cp\u003eQuestions and Short Problems 9\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2 Approaches to Valuation 11\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDiscounted Cash Flow Valuation 11\u003c\/p\u003e \u003cp\u003eRelative Valuation 19\u003c\/p\u003e \u003cp\u003eContingent Claim Valuation 23\u003c\/p\u003e \u003cp\u003eConclusion 25\u003c\/p\u003e \u003cp\u003eQuestions and Short Problems 25\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3 Understanding Financial Statements 27\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Basic Accounting Statements 27\u003c\/p\u003e \u003cp\u003eAsset Measurement and Valuation 29\u003c\/p\u003e \u003cp\u003eMeasuring Financing Mix 36\u003c\/p\u003e \u003cp\u003eMeasuring Earnings and Profitability 42\u003c\/p\u003e \u003cp\u003eMeasuring Risk 47\u003c\/p\u003e \u003cp\u003eOther Issues in Analyzing Financial Statements 53\u003c\/p\u003e \u003cp\u003eConclusion 55\u003c\/p\u003e \u003cp\u003eQuestions and Short Problems 55\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4 The Basics of Risk 58\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhat is Risk? 58\u003c\/p\u003e \u003cp\u003eEquity Risk and Expected Return 59\u003c\/p\u003e \u003cp\u003eAlternative Models for Equity Risk 71\u003c\/p\u003e \u003cp\u003eA Comparative Analysis of Equity Risk Models 76\u003c\/p\u003e \u003cp\u003eModels of Default Risk 77\u003c\/p\u003e \u003cp\u003eConclusion 81\u003c\/p\u003e \u003cp\u003eQuestions and Short Problems 82\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5 Option Pricing Theory and Models 87\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBasics of Option Pricing 87\u003c\/p\u003e \u003cp\u003eDeterminants of Option Value 89\u003c\/p\u003e \u003cp\u003eOption Pricing Models 90\u003c\/p\u003e \u003cp\u003eExtensions of Option Pricing 107\u003c\/p\u003e \u003cp\u003eConclusion 109\u003c\/p\u003e \u003cp\u003eQuestions and Short Problems 109\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6 Market Efficiency—Definition, Tests, and Evidence 111\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eMarket Efficiency and Investment Valuation 111\u003c\/p\u003e \u003cp\u003eWhat Is an Efficient Market? 112\u003c\/p\u003e \u003cp\u003eImplications of Market Efficiency 112\u003c\/p\u003e \u003cp\u003eNecessary Conditions for Market Efficiency 114\u003c\/p\u003e \u003cp\u003ePropositions about Market Efficiency 114\u003c\/p\u003e \u003cp\u003eTesting Market Efficiency 116\u003c\/p\u003e \u003cp\u003eCardinal Sins in Testing Market Efficiency 120\u003c\/p\u003e \u003cp\u003eSome Lesser Sins That Can Be a Problem 121\u003c\/p\u003e \u003cp\u003eEvidence on Market Efficiency 122\u003c\/p\u003e \u003cp\u003eTime Series Properties of Price Changes 122\u003c\/p\u003e \u003cp\u003eMarket Reaction to Information Events 130\u003c\/p\u003e \u003cp\u003eMarket Anomalies 134\u003c\/p\u003e \u003cp\u003eEvidence on Insiders and Investment Professionals 142\u003c\/p\u003e \u003cp\u003eConclusion 149\u003c\/p\u003e \u003cp\u003eQuestions and Short Problems 150\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7 Riskless Rates and Risk Premiums 154\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Risk-Free Rate 154\u003c\/p\u003e \u003cp\u003eEquity Risk Premium 159\u003c\/p\u003e \u003cp\u003eDefault Spreads on Bonds 177\u003c\/p\u003e \u003cp\u003eConclusion 180\u003c\/p\u003e \u003cp\u003eQuestions and Short Problems 180\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8 Estimating Risk Parameters and Costs of Financing 182\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Cost of Equity and Capital 182\u003c\/p\u003e \u003cp\u003eCost of Equity 183\u003c\/p\u003e \u003cp\u003eFrom Cost of Equity to Cost of Capital 210\u003c\/p\u003e \u003cp\u003eBest Practices at Firms 221\u003c\/p\u003e \u003cp\u003eConclusion 222\u003c\/p\u003e \u003cp\u003eQuestions and Short Problems 223\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 9 Measuring Earnings 229\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eAccounting versus Financial Balance Sheets 229\u003c\/p\u003e \u003cp\u003eAdjusting Earnings 230\u003c\/p\u003e \u003cp\u003eConclusion 247\u003c\/p\u003e \u003cp\u003eQuestions and Short Problems 249\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 10 From Earnings to Cash Flows 250\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Tax Effect 250\u003c\/p\u003e \u003cp\u003eReinvestment Needs 258\u003c\/p\u003e \u003cp\u003eConclusion 268\u003c\/p\u003e \u003cp\u003eQuestions and Short Problems 269\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 11 Estimating Growth 271\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Importance of Growth 272\u003c\/p\u003e \u003cp\u003eHistorical Growth 272\u003c\/p\u003e \u003cp\u003eAnalyst Estimates of Growth 282\u003c\/p\u003e \u003cp\u003eFundamental Determinants of Growth 285\u003c\/p\u003e \u003cp\u003eQualitative Aspects of Growth 301\u003c\/p\u003e \u003cp\u003eConclusion 302\u003c\/p\u003e \u003cp\u003eQuestions and Short Problems 302\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 12 Closure in Valuation: Estimating Terminal Value 304\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eClosure in Valuation 304\u003c\/p\u003e \u003cp\u003eThe Survival Issue 318\u003c\/p\u003e \u003cp\u003eClosing Thoughts on Terminal Value 320\u003c\/p\u003e \u003cp\u003eConclusion 321\u003c\/p\u003e \u003cp\u003eQuestions and Short Problems 321\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 13 Dividend Discount Models 323\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe General Model 323\u003c\/p\u003e \u003cp\u003eVersions of the Model 324\u003c\/p\u003e \u003cp\u003eIssues in Using the Dividend Discount Model 344\u003c\/p\u003e \u003cp\u003eTests of the Dividend Discount Model 345\u003c\/p\u003e \u003cp\u003eConclusion 348\u003c\/p\u003e \u003cp\u003eQuestions and Short Problems 349\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 14 Free Cash Flow to Equity Discount Models 351\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eMeasuring What Firms Can Return to Their Stockholders 351\u003c\/p\u003e \u003cp\u003eFCFE Valuation Models 357\u003c\/p\u003e \u003cp\u003eFCFE Valuation versus Dividend Discount Model Valuation 372\u003c\/p\u003e \u003cp\u003eConclusion 376\u003c\/p\u003e \u003cp\u003eQuestions and Short Problems 376\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 15 Firm Valuation: Cost of Capital and Adjusted Present Value Approaches 380\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eFree Cash flow to the Firm 380\u003c\/p\u003e \u003cp\u003eFirm Valuation: The Cost of Capital Approach 383\u003c\/p\u003e \u003cp\u003eFirm Valuation: The Adjusted Present Value Approach 398\u003c\/p\u003e \u003cp\u003eEffect of Leverage on Firm Value 402\u003c\/p\u003e \u003cp\u003eAdjusted Present Value and Financial Leverage 415\u003c\/p\u003e \u003cp\u003eConclusion 419\u003c\/p\u003e \u003cp\u003eQuestions and Short Problems 419\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 16 Estimating Equity Value per Share 423\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eValue of Nonoperating Assets 423\u003c\/p\u003e \u003cp\u003eFirm Value and Equity Value 440\u003c\/p\u003e \u003cp\u003eManagement and Employee Options 442\u003c\/p\u003e \u003cp\u003eValue per Share When Voting Rights Vary 448\u003c\/p\u003e \u003cp\u003eConclusion 450\u003c\/p\u003e \u003cp\u003eQuestions and Short Problems 451\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 17 Fundamental Principles of Relative Valuation 453\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eUse of Relative Valuation 453\u003c\/p\u003e \u003cp\u003eStandardized Values and Multiples 454\u003c\/p\u003e \u003cp\u003eFour Basic Steps to Using Multiples 456\u003c\/p\u003e \u003cp\u003eReconciling Relative and Discounted Cash Flow Valuations 466\u003c\/p\u003e \u003cp\u003eConclusion 467\u003c\/p\u003e \u003cp\u003eQuestions and Short Problems 467\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 18 Earnings Multiples 468\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePrice-Earnings Ratio 468\u003c\/p\u003e \u003cp\u003eThe PEG Ratio 487\u003c\/p\u003e \u003cp\u003eOther Variants on the PE Ratio 497\u003c\/p\u003e \u003cp\u003eEnterprise Value to EBITDA Multiple 500\u003c\/p\u003e \u003cp\u003eConclusion 508\u003c\/p\u003e \u003cp\u003eQuestions and Short Problems 508\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 19 Book Value Multiples 511\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePrice-to-Book Equity 511\u003c\/p\u003e \u003cp\u003eApplications of Price–Book Value Ratios 521\u003c\/p\u003e \u003cp\u003eUse in Investment Strategies 530\u003c\/p\u003e \u003cp\u003eValue-to-Book Ratios 532\u003c\/p\u003e \u003cp\u003eTobin’s Q: Market Value\/Replacement Cost 537\u003c\/p\u003e \u003cp\u003eConclusion 539\u003c\/p\u003e \u003cp\u003eQuestions and Short Problems 539\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 20 Revenue Multiples and Sector-Specific Multiples 542\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eRevenue Multiples 542\u003c\/p\u003e \u003cp\u003eSector-Specific Multiples 571\u003c\/p\u003e \u003cp\u003eConclusion 577\u003c\/p\u003e \u003cp\u003eQuestions and Short Problems 577\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 21 Valuing Financial Service Firms 581\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCategories of Financial Service Firms 581\u003c\/p\u003e \u003cp\u003eWhat is Unique about Financial Service Firms? 582\u003c\/p\u003e \u003cp\u003eGeneral Framework for Valuation 583\u003c\/p\u003e \u003cp\u003eDiscounted Cash Flow Valuation 584\u003c\/p\u003e \u003cp\u003eAsset-Based Valuation 599\u003c\/p\u003e \u003cp\u003eRelative Valuation 599\u003c\/p\u003e \u003cp\u003eIssues in Valuing Financial Service Firms 605\u003c\/p\u003e \u003cp\u003eConclusion 607\u003c\/p\u003e \u003cp\u003eQuestions and Short Problems 608\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 22 Valuing Firms with Negative or Abnormal Earnings 611\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eNegative Earnings: Consequences and Causes 611\u003c\/p\u003e \u003cp\u003eValuing Negative Earnings Firms 615\u003c\/p\u003e \u003cp\u003eConclusion 639\u003c\/p\u003e \u003cp\u003eQuestions and Short Problems 639\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 23 Valuing Young or Start-Up Firms 643\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eInformation Constraints 643\u003c\/p\u003e \u003cp\u003eNew Paradigms or Old Principles:\u003c\/p\u003e \u003cp\u003eA Life Cycle Perspective 644\u003c\/p\u003e \u003cp\u003eVenture Capital Valuation 646\u003c\/p\u003e \u003cp\u003eGeneral Framework for Analysis 648\u003c\/p\u003e \u003cp\u003eValue Drivers 659\u003c\/p\u003e \u003cp\u003eEstimation Noise 661\u003c\/p\u003e \u003cp\u003eImplications for Investors 662\u003c\/p\u003e \u003cp\u003eImplications for Managers 663\u003c\/p\u003e \u003cp\u003eThe Expectations Game 663\u003c\/p\u003e \u003cp\u003eConclusion 665\u003c\/p\u003e \u003cp\u003eQuestions and Short Problems 666\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 24 Valuing Private Firms 667\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhat Makes Private Firms Different? 667\u003c\/p\u003e \u003cp\u003eEstimating Valuation Inputs at Private Firms 668\u003c\/p\u003e \u003cp\u003eValuation Motives and Value Estimates 688\u003c\/p\u003e \u003cp\u003eValuing Venture Capital and Private Equity Stakes 693\u003c\/p\u003e \u003cp\u003eRelative Valuation of Private Businesses 695\u003c\/p\u003e \u003cp\u003eConclusion 699\u003c\/p\u003e \u003cp\u003eQuestions and Short Problems 699\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 25 Aquisitions and Takeovers 702\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBackground on Acquisitions 702\u003c\/p\u003e \u003cp\u003eEmpirical Evidence on the Value Effects of Takeovers 705\u003c\/p\u003e \u003cp\u003eSteps in an Acquisition 705\u003c\/p\u003e \u003cp\u003eTakeover Valuation: Biases and Common Errors 724\u003c\/p\u003e \u003cp\u003eStructuring the Acquisition 725\u003c\/p\u003e \u003cp\u003eAnalyzing Management and Leveraged Buyouts 730\u003c\/p\u003e \u003cp\u003eConclusion 734\u003c\/p\u003e \u003cp\u003eQuestions and Short Problems 735\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 26 Valuing Real Estate 739\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eReal versus Financial Assets 739\u003c\/p\u003e \u003cp\u003eDiscounted Cash Flow Valuation 740\u003c\/p\u003e \u003cp\u003eComparable\/Relative Valuation 759\u003c\/p\u003e \u003cp\u003eValuing Real Estate Businesses 761\u003c\/p\u003e \u003cp\u003eConclusion 763\u003c\/p\u003e \u003cp\u003eQuestions and Short Problems 763\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 27 Valuing Other Assets 766\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCash-Flow-Producing Assets 766\u003c\/p\u003e \u003cp\u003eNon-Cash-Flow-Producing Assets 775\u003c\/p\u003e \u003cp\u003eAssets with Option Characteristics 777\u003c\/p\u003e \u003cp\u003eConclusion 778\u003c\/p\u003e \u003cp\u003eQuestions and Short Problems 779\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 28 The Option to Delay and Valuation Implications 781\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Option to Delay a Project 781\u003c\/p\u003e \u003cp\u003eValuing a Patent 789\u003c\/p\u003e \u003cp\u003eNatural Resource Options 796\u003c\/p\u003e \u003cp\u003eOther Applications 802\u003c\/p\u003e \u003cp\u003eConclusion 802\u003c\/p\u003e \u003cp\u003eQuestions and Short Problems 803\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 29 The Options to Expand and to Abandon: Valuation Implications 805\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Option to Expand 805\u003c\/p\u003e \u003cp\u003eWhen Are Expansion Options Valuable? 812\u003c\/p\u003e \u003cp\u003eValuing a Firm with the Option to Expand 815\u003c\/p\u003e \u003cp\u003eValue of Financial Flexibility 817\u003c\/p\u003e \u003cp\u003eThe Option to Abandon 820\u003c\/p\u003e \u003cp\u003eReconciling Net Present Value and Real Option Valuations 823\u003c\/p\u003e \u003cp\u003eConclusion 823\u003c\/p\u003e \u003cp\u003eQuestions and Short Problems 824\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 30 Valuing Equity in Distressed Firms 826\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eEquity in Highly Levered Distressed Firms 826\u003c\/p\u003e \u003cp\u003eImplications of Viewing Equity as an Option 828\u003c\/p\u003e \u003cp\u003eEstimating the Value of Equity as an Option 831\u003c\/p\u003e \u003cp\u003eConsequences for Decision Making 836\u003c\/p\u003e \u003cp\u003eConclusion 839\u003c\/p\u003e \u003cp\u003eQuestions and Short Problems 839\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 31 Value Enhancement: A Discounted Cash Flow Valuation Framework 841\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eValue-Creating and Value-Neutral Actions 841\u003c\/p\u003e \u003cp\u003eWays of Increasing Value 842\u003c\/p\u003e \u003cp\u003eValue Enhancement Chain 859\u003c\/p\u003e \u003cp\u003eClosing Thoughts on Value Enhancement 864\u003c\/p\u003e \u003cp\u003eConclusion 865\u003c\/p\u003e \u003cp\u003eQuestions and Short Problems 865\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 32 Value Enhancement: Economic Value Added, Cash Flow Return on Investment, and Other Tools 869\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eEconomic Value Added 870\u003c\/p\u003e \u003cp\u003eCash Flow Return on Investment 884\u003c\/p\u003e \u003cp\u003eA Postscript on Value Enhancement 890\u003c\/p\u003e \u003cp\u003eConclusion 891\u003c\/p\u003e \u003cp\u003eQuestions and Short Problems 891\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 33 Probabilistic Approaches in Valuation: Scenario Analysis, Decision Trees, and Simulations 894\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eScenario Analysis 894\u003c\/p\u003e \u003cp\u003eDecision Trees 899\u003c\/p\u003e \u003cp\u003eSimulations 908\u003c\/p\u003e \u003cp\u003eAn Overall Assessment of Probabilistic Risk-Assessment Approaches 919\u003c\/p\u003e \u003cp\u003eConclusion 921\u003c\/p\u003e \u003cp\u003eQuestions and Short Problems 921\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 34 Overview and Conclusion 925\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eChoices in Valuation Models 925\u003c\/p\u003e \u003cp\u003eWhich Approach Should You Use? 926\u003c\/p\u003e \u003cp\u003eChoosing the Right Discounted Cash Flow Model 929\u003c\/p\u003e \u003cp\u003eChoosing the Right Relative Valuation Model 933\u003c\/p\u003e \u003cp\u003eWhen Should You Use the Option Pricing Models? 937\u003c\/p\u003e \u003cp\u003eConclusion 938\u003c\/p\u003e \u003cp\u003eReferences 939\u003c\/p\u003e \u003cp\u003eIndex 954\u003c\/p\u003e","brand":"John Wiley \u0026 Sons Inc","offers":[{"title":"Default Title","offer_id":48866366128471,"sku":"9781118130735","price":74.7,"currency_code":"GBP","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0817\/1739\/5799\/files\/9781118130735.jpg?v=1722278305","url":"https:\/\/bookcurl.com\/products\/investment-valuation-9781118130735","provider":"Book Curl","version":"1.0","type":"link"}