| Description |
1 online resource (515 pages) |
| Contents |
880-01 Cover; Title Page; Copyright; Contents; Preface; Acknowledgments; About the Author; Chapter 1 Introduction; 1.1 What We Should Know to Value a Company; 1.2 Valuation Methods: An Overview; 1.2.1 Common Practices in the Accounting and Financial Communities; 1.2.2 Approach of This Book; 1.3 The Time Value of Money; 1.4 Uncertainty in Company Valuations; 1.4.1 Organizing the Analysis; 1.5 Uncertainty and Managerial Flexibility; 1.5.1 Static versus Dynamic Assumption; 1.5.2 Some Conclusions on Uncertainty and Managerial Flexibility; 1.5.3 Valuing Companies Assuming a Dynamic Standpoint |
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880-01/(S 7.3. Problems with the Discount of Tax Benefit -- 7.4. Cost of Capital Formulas in Growth Scenarios -- 7.5. The WACC: Some Remarks -- 7.6. Real Dimension of Tax Benefits -- Appendix 7.1 Derivation of the Formulas to Calculate the Cost of Capital -- Appendix 7.2 Pattern of K in a Growth Context: Some Remarks -- ch. 8 Estimating the Cost of Capital -- 8.1. Defining the Opportunity Cost of Capital -- 8.2.A Few Comments on Risk -- 8.3. Practical Approaches to Estimate Keu -- 8.4. Approach Based on Historical Returns -- 8.5. Analysis of Stock Returns -- 8.6. Analysis of Accounting Returns -- 8.7. Estimating Expected Returns from Current Stock Prices -- 8.8. Models Based on Returns' Sensitivity to Risk Factors -- 8.9. The Capital Asset Pricing Model -- 8.10. Calculating Rf -- 8.11. Calculating Rp -- 8.12. Estimating β -- 8.13. Dealing with Specific Risks -- 8.14. Conclusions on the Estimation of the Opportunity Cost of Capital -- 8.15. Cost of Debt |
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1.6 Relationship between Value and UncertaintyChapter 2 Business Forecasting for Valuation; 2.1 Introduction; 2.2 Key Phases of the Business Plan Elaboration; 2.2.1 Markets, Competitive Positioning, and Past Results; 2.2.2 Definition of the Competitive Strategies; 2.2.3 Definition of the Actions Needed to Implement the Competitive Strategy; 2.2.4 The Formulation of the Quantitative Assumptions; 2.2.5 Preparation of the Plan Forecasts; 2.3 What Drives the Preparation of a Business Plan?; 2.3.1 A Components Manufacturer; 2.3.2 Commercial Companies Operating through a Network of Points of Sale |
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2.3.3 Companies Operating on Order2.3.4 Companies Operating in Regulated Sectors; 2.4 The Main Methodological Issues; 2.4.1 Time Horizon Covered by the Plan; 2.4.2 Real Business Plans versus Nominal Business Plans; 2.4.3 Aspects to Develop in the Phase of Business Plan Critical Analysis; 2.4.4 Sensitivity Analysis; Chapter 3 Scenario Analysis; 3.1 Introduction; 3.2 What Is Scenario Analysis?; 3.3 Difference between Scenario and Sensitivity Analysis; 3.4 When to Perform Scenario Analysis; 3.5 Worst and Best Cases and What Happens Next; 3.6 Multi-Scenario Analysis; 3.7 Pros and Cons |
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3.8 How to Perform Scenario Analysis in Excel3.9 Conclusions; Chapter 4 Monte Carlo Valuation; 4.1 Introducing Monte Carlo Techniques; 4.2 Monte Carlo and Corporate Valuation; 4.3 A Step-by-Step Procedure; 4.4 Case Study: Outdoor Inc. Valuation; 4.5 A Step-by-Step Guide Using Excel and Crystal Ball; Chapter 5 Determining Cash Flows for Company Valuation; 5.1 Introduction; 5.2 Reorganization of the Balance Sheet; 5.2.1 Uses of Funds Related to Operating Activities; 5.2.2 Sources of Financing; 5.2.3 Reorganization of the Balance Sheet of Printing Co |
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5.3 Relationship between a Company's Balance Sheet and̃Income Statement5.3.1 Reorganization of Printing Co.'s Income Statement; 5.4 From the Economic to the Financial Standpoint; 5.4.1 Cash Flow from Operating Activities: Cash Generated from Current Operations; 5.4.2 Cash Flow from Operating Activities: Investing Activities; 5.4.3 Cash Flow from Financing Activities; 5.4.4 Cash Flow from Surplus Assets; 5.4.5 Uses and Sources of Funds; 5.5 Cash Flow Definitions and Valuation Models; 5.6 Business Plan and Cash Flow Projections; 5.6.1 The Basic Assumptions |
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Introduction -- Business forecasting for valuation -- Scenario Analysis1 -- Monte Carlo Valuation1 -- Determining cash flows for company valuation -- Choosing the valuation standpoint -- Leverage and value in growth scenarios -- Estimating the cost of capital -- Cash flow profiles and valuation procedures -- A steady state cash flow model -- Discounting cash flows and terminal value -- Multiples: an overview -- Multiples in practice -- The acquisition value -- Value and prices in the market for corporate control -- Valuation considerations on rights issues -- Carbon risk and corporate value1 -- Index |
| Summary |
"Risk consideration is central to more accurate post-crisis valuation Corporate Valuation presents the most up-to-date tools and techniques for more accurate valuation in a highly volatile, globalized, and risky business environment. This insightful guide takes a multidisciplinary approach, considering both accounting and financial principles, with a practical focus that uses case studies and numerical examples to illustrate major concepts. Readers are walked through a map of the valuation approaches proven most effective post-crisis, with explicit guidance toward implementation and enhancement using advanced tools, while exploring new models, techniques, and perspectives on the new meaning of value. Risk centrality and scenario analysis are major themes among the techniques covered, and the companion website provides relevant spreadsheets, models, and instructor materials. Business is now done in a faster, more diverse, more interconnected environment, making valuation an increasingly more complex endeavor. New types of risks and competition are shaping operations and finance, redefining the importance of managing uncertainty as the key to success. This book brings that perspective to bear in valuation, providing new insight, new models, and practical techniques for the modern finance industry. Gain a new understanding of the idea of "value," from both accounting and financial perspectives Learn new valuation models and techniques, including scenario-based valuation, the Monte Carlo analysis, and other advanced tools Understand valuation multiples as adjusted for risk and cycle, and the decomposition of deal multiples Examine the approach to valuation for rights issues and hybrid securities, and more Traditional valuation models are inaccurate in that they hinge on the idea of ensured success and only minor adjustments to forecasts. These rules no longer apply, and accurate valuation demands a shift in the paradigm. Corporate Valuation describes that shift, and how it translates to more accurate methods"-- Provided by publisher |
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"Corporate Valuation offers investment bankers and equity analysts many new insights. First, the book provides a more modern and thorough analysis of the idea of value"-- Provided by publisher |
| Notes |
5.6.2 Projecting Cash Flows for Printing Co |
| Bibliography |
Includes bibliographical references and index |
| Notes |
Online resource (Bloomberg Law, viewed March 5, 2018) |
| Subject |
Business enterprises -- Valuation.
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BUSINESS & ECONOMICS -- Corporate Finance -- Valuation.
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Business enterprises -- Valuation
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| Form |
Electronic book
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| Author |
Gianfrate, Gianfranco, author.
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Zanetti, Laura, author.
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| ISBN |
9781119003359 |
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1119003350 |
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9781119261674 |
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1119261678 |
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1119003342 |
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9781119003342 |
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