Damodaran on Valuation by Damodaran, Aswath -- Read -- Imperial Library of Trantor

Index

Cover Contents Title Copyright Dedication Preface Chapter 1: Introduction to Valuation

A Philosophical Basis for Valuation Inside the Valuation Process Approaches to Valuation Role of Valuation Conclusion

Part One: Discounted Cash Flow Valuation

Chapter 2: Estimating Discount Rates

What is Risk? Cost of Equity From Cost of Equity to Cost of Capital Conclusion

Chapter 3: Measuring Cash Flows

Categorizing Cash Flows Earnings Tax Effect Reinvestment Needs From Firm to Equity Cash Flows Conclusion

Chapter 4: Forecasting Cash Flows

Structure of Discounted Cash Flow Valuation Length of Extraordinary Growth Period Detailed Cash Flow Forecasts Terminal Value Estimation Approaches Conclusion

Chapter 5: Equity Discounted Cash Flow Models

Dividend Discount Models FCFE (Potential Dividend) Discount Models FCFE Versus Dividend Discount Model Valuation Per Share Versus Aggregate Valuation Conclusion

Chapter 6: Firm Valuation Models

Cost of Capital Approach Adjusted Present Value Approach Excess Return Models Capital Structure and Firm Value Conclusion

Part Two: Relative Valuation

Chapter 7: Relative Valuation: First Principles

What is Relative Valuation? Ubiquity of Relative Valuation Reasons for Popularity and Potential Pitfalls Standardized Values and Multiples Four Basic Steps to Using Multiples Reconciling Relative and Discounted Cash Flow Valuations Conclusion

Chapter 8: Equity Multiples

Definitions of Equity Multiples Distributional Characteristics of Equity Multiples Analysis of Equity Multiples Applications of Equity Multiples Conclusion

Chapter 9: Value Multiples

Definition of Value Multiples Distributional Characteristics of Value Multiples Analysis of Value Multiples Applications of Value Multiples Conclusion

Part Three: Loose Ends in Valuation

Chapter 10: Cash, Cross Holdings, and Other Assets

Cash and Near-Cash Investments Financial Investments Holdings in Other Firms Other Nonoperating Assets Conclusion Appendix 10.1: Industry Averages: Cash Ratios—January 2005

Chapter 11: Employee Equity Options and Compensation

Equity-Based Compensation Employee Options Restricted Stock Conclusion

Chapter 12: The Value of Intangibles

Importance of Intangible Assets Independent and Cash-Flow-Generating Intangible Assets Firmwide Cash-Flow-Generating Intangible Assets Intangible Assets with Potential Future Cash Flows Conclusion Appendix 12.1: Option Pricing Models

Chapter 13: The Value of Control

Measuring the Expected Value of Control Manifestations of the Value of Control Conclusion

Chapter 14: The Value of Liquidity

Measuring Illiquidity Cost of Illiquidity: Theory Cost of Illiquidity: Empirical Evidence Dealing with Illiquidity in Valuation Consequences of Illiquidity Conclusion

Chapter 15: The Value of Synergy

What is Synergy? Valuing Synergy Dubious Synergies Evidence on Synergy—Value Created and Added Common Errors in Valuing Synergy Conclusion

Chapter 16: The Value of Transparency

An Experiment Defining Complexity Sources of Complexity Reasons for Complexity Measuring Complexity Consequences of Complexity Dealing with Complexity Cures for Complexity Conclusion Appendix 16.1: Standard & Poor’s Transparency and Disclosure Index: Key Questions Appendix 16.2: Measuring Complexity with a Score—An Example

Chapter 17: The Cost of Distress

Possibility and Consequences of Financial Distress Discounted Cash Flow Valuation Relative Valuation From Firm to Equity Value in Distressed Firms Conclusion

Chapter 18: Closing Thoughts

Choices in Valuation Models Which Approach Should We Use? Choosing the Right Discounted Cash Flow Model Choosing the Right Relative Valuation Model When should We Use the Option Pricing Models? Ten Steps to Better Valuations Conclusion

Index