Investment Valuation: Tools And Techniques For ... ((HOT))
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. In order to be successful at this endeavor, you must have a firm understanding of the proper valuation techniques. One valuation book stands out as withstanding the test of time among investors and students of financial markets, Aswath Damodaran'sInvestment Valuation.
Investment Valuation: Tools and Techniques for ...
Now completely revised and updated to reflect changing market conditions, this third edition comprehensively introduces investment professionals and students to the range of valuation models available and how to chose the right model for any given asset valuation scenario. This edition includes valuation techniques for a whole host of real options, start-up firms, unconventional assets, distressed companies and private equity, and real estate. All examples have been updated and new material has been added.
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. In order to be successful at this endeavor, you must have a firm understanding of the proper valuation techniques. One valuation book stands out as withstanding the test of time among students of financial markets and investors, Aswath Damodaran'sInvestment Valuation.
Now completely revised and updated to reflect changing market conditions, this third edition comprehensively introduces students and investment professionals to the range of valuation models available and how to chose the right model for any given asset valuation scenario. This edition includes valuation techniques for a whole host of real options, start-up firms, unconventional assets, distressed companies and private equity, and real estate. All examples have been updated and new material has been added.
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. In order to be successful at this endeavor, you must have a firm understanding of the proper valuation techniques. One valuation book stands out as withstanding the test of time among investors and students of financial markets, Aswath Damodaran'sInvestment Valuation.
While written to reflect current market conditions, this reliable resource also stays true to previous editions with coverage of a wide range of tools and techniques, both new and old, for determining the value of any asset, including the valuation of stocks, bonds, options, futures, real assets, and much more.
Valuation refers to the process of determining the present value of a company, investment or an asset. There are a number of common valuation techniques, as described below. Analysts who want to place a value on an asset normally look at the prospective future earning potential of that company or asset.
When valuing a company as a going concern, there are three main valuation techniques used by industry practitioners: (1) DCF analysis, (2) comparable company analysis, and (3) precedent transactions. These are the most common methods of valuation used in investment banking, equity research, private equity, corporate development, mergers & acquisitions (M&A), leveraged buyouts (LBO), and most areas of finance.
INVESTMENT VALUATION Third Edition UNIVERSITY EDITIONValuation 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. Now completely revised and updated to reflect changing market conditions, the Third University Edition of Investment Valuation provides expert instruction on how to value virtually any type of assetstocks, bonds, options, futures, real assets, and much more. Written by noted valuation authorityand acclaimed New York University Stern Business School ProfessorAswath Damodaran, this reliable resource uses real-world examples and the most current valuation tools to guide you through the theory and application of various valuation models. Along the way, it provides comprehensive coverage of: The valuation lessons learned from the recent market crisis
Using real option theory and option pricing models in valuing business and equity
Valuation of unconventional assets, financial service firms, start-ups, emerging market companies, and many other traditionally valued assets
Probabilistic approaches in valuation, such as scenario analysis, decision trees, and simulations
How to choose the right model for any given asset valuation scenario
A perfect guide for those who need to know more about the tricky business of valuation, the Third University Edition of Investment Valuationwhich includes an instructor's companion sitewill be an essential asset to anyone learning about this critical part of the investment process.
INVESTMENT VALUATION Third Edition UNIVERSITY EDITIONValuation 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. Now completely revised and updated to reflect changing market conditions, the Third University Edition of Investment Valuation provides expert instruction on how to value virtually any type of asset--stocks, bonds, options, futures, real assets, and much more. Written by noted valuation authority--and acclaimed New York University Stern Business School Professor--Aswath Damodaran, this reliable resource uses real-world examples and the most current valuation tools to guide you through the theory and application of various valuation models. Along the way, it provides comprehensive coverage of: The valuation lessons learned from the recent market crisis
Using real option theory and option pricing models in valuing business and equity
Valuation of unconventional assets, financial service firms, start-ups, emerging market companies, and many other traditionally valued assets
Probabilistic approaches in valuation, such as scenario analysis, decision trees, and simulations
How to choose the right model for any given asset valuation scenario
A perfect guide for those who need to know more about the tricky business of valuation, the Third University Edition of Investment Valuation--which includes an instructor's companion site--will be an essential asset to anyone learning about this critical part of the investment process.
This paper offers outlines of a new model for valuing income-producing illiquid assets (stocks of private companies in industries not quoted on public exchanges, intangible assets, income-producing specialized real property etc) where the valuation is for purposes of determining values-in-exchange (as opposed to investment value). In exploring the principle of discounting for such assets this paper makes a departure from equilibrium 'broad-market' thinking characteristic of CAPM-like models (which seem to be mostly applicable in their field of valuing liquid assets, but the transference of which to valuing assets which are involved only in sporadic exchanges is called into question) and offers a formalization of the new principle of 'transaction equilibrium' (which was inspired by the general definition of Market Value contained in the International Valuation Standards). Proceeding from this principle, it is possible to view the rationale for DCF-based exchange valuations at a new angle and offer alternative justifications for compressing general DCF format into particular income capitalization techniques (such as the Gordon Model, Inwood framework etc). Therefore, this paper offers (in Part 2) alternative derivations of those income capitalization techniques, while Part 1 is devoted to formulating discounting procedure which is seen to be more befitting for cases of valuing illiquid assets in transaction equilibrium conditions. Besides, general DCF framework is a multi-period framework which sits badly with one-period discounting techniques (such as CAPM or APT corollaries) which are having wide currency in practical valuations. The proposed discounting technique is explicitly multi-period and has investment behavioral features of presumed buyers/sellers transacting in illiquid assets for its inputs.
The subjects are taught using practical examples of project management with a theoretical framework that follows the outline of the syllabus. While it is primarily a theoretical module the focus is on the interaction with students and concrete discussion of real examples. The introduction to the tools that allow the analysis of economic viability is conducted using excel sheets and a practical example of a feasibility study is undertaken. The types of investment incentives are addressed using the online portal suitable for the purpose. The evaluation consists on the preparation of a business plan that aims to assess the ability to develop a coherent study of the feasibility of the project. The focus is on creativity and innovative aspects of the business plan and on its overall cohesion, in particular the link between each section of the business plan. The business plan is prepared in groups of a maximum of three elements to encourage the practice of brainstorming and collaboration. 041b061a72