Dark Side of Valuation: The Valuing Young, Distressed, and Complex Businesses
Financial professionals have long faced the challenge of accurately valuing companies that are difficult to value using conventional methodologies. Years ago, this challenge was most keenly felt in the "dot-com" industries, and many professionals fell victim to the "dark side," creating values that were simply unsustainable. Now, amidst today's global financial crisis, the same challenge applies to a far wider spectrum of enterprises and assets, ranging from Asian equities to mortgage-backed securities, financial services firms like Lehman to real estate firms like Sears. In The Dark Side of Valuation, the world's top expert on valuation brings together today's best practices for accurately valuing young, distressed, and complex businesses. Aswath Damodaran has thoroughly revised this book, broadening its perspective to consider all companies that resist easy valuation. He covers the entire corporate lifecycle, from "idea" and "nascent growth" companies to those in decline and distress and offers specific guidance for valuing infrastructure, real estate, technology, human capital, commodity, and cyclical firms. Damodaran places special emphasis on the financial sector, illuminating the implications of today's radically changed credit markets for valuation.
Table of Content
Chapter 1 The Dark Side of Valuation
Chapter 2 Intrinsic Valuation
Chapter 3 Probabilistic Valuation: Scenario Analysis, Decision Trees, and Simulations
Chapter 4 Relative Valuation
Chapter 5 Real Options Valuation
Chapter 6 A Shaky Base: A "Risky" Risk-Free Rate
Chapter 7 Risky Ventures: Assessing the Price of Risk
Chapter 8 Macro Matters: The Real Economy
Chapter 9 Baby Steps: Young and Start-Up Companies
Chapter 10 Shooting Stars? Growth Companies
Chapter 11 The Grown-Ups: Mature Companies
Chapter 12 Winding Down: Declining Companies
Chapter 13 Ups and Downs: Cyclical and Commodity Companies
Chapter 14 Mark to Market: Financial Services Companies
Chapter 15 Invisible Investments: Firms with Intangible Assets
Chapter 16 Volatility Rules: Emerging-Market Companies
Chapter 17 The Octopus: Multibusiness Global Companies
Chapter 18 Going Over to the Light: Vanquishing the Dark Side
Guide to valuing companies in all stages and industries, fully revised to reflect today's financial markets and crisis.
Indispensable, up-to-the-minute guidance from the world's #1 expert in corporate valuation, Aswath Damodaran.
Expanded to include detailed coverage of companies in financial services, real estate, infrastructure, human capital, commodity, and cyclical markets.
Answers crucial valuation questions that have suddenly emerged in the wake of the global financial crisis.