Valuation

The number one guide to corporate valuation is back and better than ever Thoroughly revised and expanded to reflect business conditions in today's volatile global economy, Valuation, Fifth Edition continues the tradition of its bestselling predecessors by providing up-to-date insights and practical advice on how to create, manage, and measure the value of an organization. Along with all new case studies that illustrate how valuation techniques and principles are applied in real-world situations, this comprehensive guide has been updated to reflect new developments in corporate finance, changes in accounting rules, and an enhanced global perspective. Valuation, Fifth Edition is filled with expert guidance that managers at all levels, investors, and students can use to enhance their understanding of this important discipline. Contains strategies for multi-business valuation and valuation for corporate restructuring, mergers, and acquisitions Addresses how you can interpret the results of a valuation in light of a company's competitive situation Also available: a book plus CD-ROM package (978-0-470-42469-8) as well as a stand-alone CD-ROM (978-0-470-42457-7) containing an interactive valuation DCF model Valuation, Fifth Edition stands alone in this field with its reputation of quality and consistency. If you want to hone your valuation skills today and improve them for years to come, look no further than this book.

The number one guide to corporate valuation is back and betterthan everThoroughly revised and expanded to reflect business conditionsin today's volatile global economy, Valuation, Fifth Editioncontinues the tradition of its bestselling predecessors byproviding up-to-date insights and practical advice on how tocreate, manage, and measure the value of an organization.
Along with all new case studies that illustrate how valuationtechniques and principles are applied in real-world situations,this comprehensive guide has been updated to reflect newdevelopments in corporate finance, changes in accounting rules, andan enhanced global perspective. Valuation, Fifth Edition isfilled with expert guidance that managers at all levels, investors,and students can use to enhance their understanding of thisimportant discipline.
* Contains strategies for multi-business valuation and valuationfor corporate restructuring, mergers, and acquisitions
* Addresses how you can interpret the results of a valuation inlight of a company's competitive situation
* Also available: a book plus CD-ROM package (978-0-470-42469-8)as well as a stand-alone CD-ROM (978-0-470-42457-7) containing aninteractive valuation DCF model
Valuation, Fifth Edition stands alone in this field withits reputation of quality and consistency. If you want to hone yourvaluation skills today and improve them for years to come, look nofurther than this book.

About the Authors ix
Preface xi
Acknowledgments xv
Part One Foundations of Value
1 Why Value Value? 3
2 Fundamental Principles of Value Creation 15
3 The Expectations Treadmill 43
4 Return on Invested Capital 57
5 Growth 79
Part Two Core Valuation Techniques
6 Frameworks for Valuation 101
7 Reorganizing the Financial Statements 131
8 Analyzing Performance and Competitive Position 163
9 Forecasting Performance 185
10 Estimating Continuing Value 211
11 Estimating the Cost of Capital 231
12 Moving from Enterprise Value to Value per Share 267
13 Calculating and Interpreting Results 287
14 Using Multiples to Triangulate Results 303
Part Three Intrinsic Value and the Stock Market
15 Market Value Tracks Return on Invested Capital and Growth 325
16 Markets Value Substance, Not Form 345
17 Emotions and Mispricing in the Market 369
18 Investors and Managers in Efficient Markets 385
Part Four Managing for Value
19 Corporate Portfolio Strategy 401
20 Performance Management 415
21 Mergers and Acquisitions 431
22 Creating Value through Divestitures 455
23 Capital Structure 475
24 Investor Communications 511
Part Five Advanced Valuation Issues
25 Taxes 529
26 Nonoperating Expenses, One-Time Charges, Reserves, and Provisions 543
27 Leases, Pensions, and Other Obligations 559
28 Capitalized Expenses 577
29 Inflation 587
30 Foreign Currency 601
31 Case Study: Heineken 615
Part Six Special Situations
32 Valuing Flexibility 657
33 Valuation in Emerging Markets 689
34 Valuing High-Growth Companies 717
35 Valuing Cyclical Companies 731
36 Valuing Banks 741
Appendix A Economic Profit and the Key Value Driver Formula 765
Appendix B Discounted Economic Profit Equals Discounted Free Cash Flow 769
Appendix C Derivation of Free Cash Flow,Weighted Average Cost of Capital, and Adjusted Present Value 773
Appendix D Levering and Unlevering the Cost of Equity 779
Appendix E Leverage and the Price-to-Earnings Multiple 787
Index 791