Anyone wanting to understand what drives corporate value should read this latest edition. Hailed by financial professionals worldwide as the single best guide of its kind, Valuation, Fourth Edition is thoroughly revised and expanded to reflect business conditions in today's volatile global economy. I do however have a general interest in this topic. This comprehensive study guide provides you with an invaluable opportunity to explore your understanding of the strategies and techniques covered in the main text, before putting it to work in real-world situations. It breaks down the fundamentals of how value is created and various approaches for measuring it. There are obviously competing text books on valuation such as Damodaran on Valuation.
Our Values At Goodwill of the Heartland, we are committed to supporting people we serve by respecting and empowering them in all of our interactions. With that being said, I'm not completely sold on the accuracy of Discounted Free Cash Flow with the methods being purported. So the challenge of the manager is make captial budgeting, capital structure, and managerial decisions that maximize shareholder value and create overall value for both the real market his company and the financial markets. © 2016 Goodwill of the Heartland Condition: Good, Edition Number: 6, Publication Year: 2015, Language: English, Format: Hardcover See More. If each and one of the many inputs are tweaked in a slightly more optimistic or pessimistic direction the multiplier effect of all those small but one by one reasonable changes will bring huge swings in the calculated intrinsic value. A former consultant with McKinsey, he received his PhD from the University of California at Los Angeles. The remainder of the book discusses how to apply these concepts, both in more technical terms Part 2 and as a manager Part 3.
The writing is clear and direct, combining the best academic principles with actual experience to arrive at value-increasing solutions. I'll possibly update a review upon revisiting this book but I am currently of a neutral opinion towards it. From the Back Cover: Praise for Previous Editions The 1 guide to corporate valuation is back. Non-deliveries must be reported within 30 days of Shipment Notification. This guide shows you everything you need to know, and gives you the understanding you need to be effective.
Valuation stands ahead of the field for its reputation, quality, and prestige, putting the solutions you need right at your fingertips. Estimate the value of business strategies to drive better decision making Understand which business units a corporate parent is best positioned to own Assess major transactions, including acquisitions, divestitures, and restructurings Design a capital structure that supports strategy and minimizes risk As the valuation function becomes ever more central to long- and short-term strategy, analysts and managers need an authoritative reference to turn to for answers to challenging situations. Remember, the stock market is forward looking. . Valuation illustrates how to take advantage of the American tradition of maximizing shareholder value, demonstrates how value-based management contributes to improved strategic thinking, and shows how managers at any level can create value for their companies.
The authors seem to be implying that these issues are irrelevant!! The reason is that most of us have had it as a text book at university, but compared to all the other text books this one is also a handbook in corporate valuation that is used by practitioners. This long-awaited Third Edition has been comprehensively updated and expanded to reflect business conditions in today's volatile global economy and to provide highly effective ways for managers at every level to create value for their companies. Anyone wanting to understand what drives corporate value should read this latest edition. More relatable to those who have already spent some time in the industry tracking and valuing companies. It is required reading for all executives. This guide shows you everything you need to know, and gives you the understanding you need to be effective. It is also available via flatpack 978-1-118-87366-3 at online bookstores.
Undeliverable, unclaimed, refused, or insufficient addresses will be subject to a 20% restocking fee plus the cost of shipping. Valuation stands ahead of the field for its reputation, quality, and prestige, putting the solutions you need right at your fingertips. Dust cover is intact; pages are clean and are not marred by notes or folds of any kind. The writing is clear and direct, combining the best academic principles with actual experience to arrive at value—increasing solutions. You might go so far as to say that this formula represents all there is to valuation.
For example, if the company is expected to earn 25% on its investments, but earns 20%, the stock price will go down, even though the return beat the cost of capital. Any calculation of it is an act of faith. Over the past seven decades, the firm's primary objective has remained constant: to serve as an organization's most trusted external advisor on critical issues facing senior management. It requires a large number of assumptions of future performance. This has a lot of information but is admittedly a little beyond my ability at the time.