Includes bibliographical references and index.
Pt. I. Company Value and the Manager's Mission. 1. Why Value Value? 2. The Value Manager. 3. Cash Is King. 4. Value-Based Management -- Pt. II. Cash Flow Valuation: A Practitioner's Guide. 5. Frameworks for Valuation. 6. Analyzing Historical Performance. 7. Forecasting Performance. 8. Estimating the Cost of Capital. 9. Estimating Continuing Value. 10. Calculating and Interpreting Results -- Pt. III. Applying Valuation. 11. Multibusiness Valuation. 12. Valuing Foreign Subsidiaries. 13. Valuation Outside of the United States. 14. Mergers, Acquisitions, and Joint Ventures. 15. Using Option Pricing Methods to Value Flexibility. 16. Valuing Banks. Appendix A: Proof of the Equivalence of Two Formulas for Estimating Continuing Value -- Appendix B: Sources of Valuation Data -- Appendix C: Valuation Models.
The bestseller that opened the eyes of corporate America to the importance of measuring, managing, and maximizing shareholder value is now expanded and updated to help managers boost their company's value in a vastly altered business climate. In the global economy of the 1990s, investors move their money quickly and easily around the world in search of the greatest return.
This expanded edition of Valuation describes the valuation process and explains the differences between valuation and accounting practices in the United States and those in other countries. It 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 managers at every level in any corporation how to create value for their companies.
In addition, this book provides a new chapter featuring insights into the strategic advantages of value-based management; strategies for multibusiness valuation, valuation of international businesses and valuation for corporate restructuring, mergers, and acquisitions; international comparisons of the cost of capital, differences in accounting procedures, and how valuation works in different countries; and a detailed case study showing how valuation techniques and principles are applied.
Truly the crossroads where corporate strategy and finance meet, this book contains the latest information on new ways to apply valuation and value-based management to maximize any company's appeal to investors and other capital sources.