In theory, valuation is a relatively simple process of discounting a firm's expected cash flows by investors' required rates of return. In practice, valuation is highly complex because there are numerous valuation models and techniques. So, how can financial professionals and consulting firms effectively value companies? They must choose the valuation models and techniques that are best suited for the situation at hand.
Given the extreme volatility of today's markets and the continuing economic uncertainty, valuation is a critical issue for analysts, investors, and businesses. That's why you need The Valuation Handbook. Filled with in-depth insights and expert advice, this reliable resource touches upon the essential aspects of this field, including the valuation of public companies, private companies, illiquid companies, start-ups, and business units. It also covers the specific tools and techniques needed to excel at this endeavor, rather than focusing on the underlying theories associated with the valuation process. The information found here applies equally to investment firms where security analysts pick stocks and managers combine those stocks into diversified portfolios, as well as corporations where management seeks to create shareholder wealth in a highly competitive economy.
Written with the serious financial professional in mind, this book details a variety of important issues you must become familiar with, including:
The Valuation Handbook differs significantly from other sources of information on this subject because the contributors to this guide are practitioners representing consulting and investment firms, plus academics—all who explain how they value companies and other assets. Along the way, these leading practitioners and academics provide a unique perspective on how to value both publicly traded and privately held companies.
In these times of enormous economic stress, the financial profession needs to rethink many of its assumptions and processes involving the core topic of valuation. The Valuation Handbook will help you achieve this goal and put you in a better position to make more informed valuation decisions.