Praise for Business Valuation: An Integrated Theory, 2nd Edition "The Second Edition of Business Valuation: An Integrated Theory manages to present the theoretical analysis of valuation from the first edition and expand on that discussion by providing additional guidance on implementing the relevant valuation theories, notably in its expanded discussion of the Quantitative Marketability Discount Model." —Dr. David Tabak, NERA Economic Consulting Your Essential Valuations Reference Whether you are an accountant, auditor, financial planner, or attorney, Business Valuation: An Integrated Theory, 2nd Edition enables you to understand and correctly apply fundamental valuation concepts. Thoroughly revised and expanded, the Second Edition demystifies modern valuation theory, bringing together various valuation concepts to reveal a comprehensive picture of business valuation. With the implementation of new accounting pronouncements mandating the recognition of numerous assets and liabilities at fair value, it has become critical for CPAs charged with auditing financial statements to understand valuation concepts. With thoughtful and balanced treatment of both theory and application, this essential guide reveals: The "GRAPES of Value"-Growth, Risk and Reward, Alternative Investments, Present Value, Expectations, and Sanity The relationship between the Gordon Model and the discounted cash flow model of valuation The basis for commonly applied, but commonly misunderstood valuation premiums and discounts A practical perspective on the analysis of potential business acquisitions Grounded in the real world of market participants, Business Valuation, 2nd Edition addresses your need to understand business valuation, providing a means of articulating valuation concepts to help you negotiate value-enhancing transactions. If you want to get back to valuation basics, this useful reference will become your guide to defining the various levels of value and developing a better understanding of business appraisal reports.

The first edition of Theory of Valuation is a collection of important papers in the field of theoretical financial economics published from 1973 to 1986, and original accompanying essays contributed by eminent researchers including Robert C Merton, Edward C Prescott, Stephen A Ross, and Joseph E Stiglitz.Since then, with the perspective of major theoretical strides in the field, the book has more than fulfilled its original expectations. The realization that it remains today a compendium of classic articles and a must-read for any serious student in theoretical financial economics, has prompted the publication of a new edition.This second edition presents a summary statement of significant research in theoretical financial economics for both the specialist and non-specialist financial economist. It also provides material for PhD-level courses covering valuation theory, and elective reading for advanced Master's and undergraduate courses.In addition to reproducing the original contributions, this edition includes the seminal paper by Edward C Prescott and Rajnish Mehra, “Recursive Competitive Equilibrium: The Case of Homogeneous Households,” originally published in Econometrica in 1980.

Market_Desc: · CEOs· Corporate Strategists and other Senior Executives· Investment Analysts· Professors· Students Special Features: · A widely popular book on valuation, completely revised with stronger content covering the most qualitative and subtle topics in valuation. Book s new emphasis is on corporate strategy and more difficult, qualitative valuation issues (such as the value of transparency in corporate disclosures to shareholders, the value of a CEO and management team, value of good corporate ethics, value of sound environmental policy, etc.)· Fresh real world examples and new valuation tools and issues are addressed, to reflect the more complex realities of corporate and investment valuation in today s marketplace.· Valuation content is now targeting the essential big picture issues faced by CEOs and corporate strategists, such as understanding the links between corporate strategy and value, marketing and value, transparency and value, brands and value, and operational efficiency and value.· Clear differentiation with Investment Valuation 2/e: Investment Valuation has become the nuts and bolts investment valuation book of choice for number crunching analysts and students, and Damodaran on Valuation 2/e becomes the corporate strategy valuation book geared directly CEOs, senior managers, and corporate strategists. About The Book: In order to be a successful CEO or corporate strategist, or an analyst properly valuing competing firms, Damodaran on Valuation stands out as the most comprehensive book on these subtle but critical valuation questions. Now completely revised and updated, it is the ideal book on valuation for CEOs and corporate strategists, and a perfect complement to the widely popular nuts and bolts valuation classic, Investment Valuation 2/e. Damodaran on Valuation will not only convince you of the vitality of the many valuation models available to you, it will help ensure that you develop the acumen needed for the most complex and subtle valuation scenarios.

Expert direction on interpretation and application of standards of value Written by Jay Fishman, Shannon Pratt, and William Morrison—three renowned valuation practitioners—Standards of Value, Second Edition discusses the interaction between valuation theory and its judicial and regulatory application. This insightful book addresses standards of value (SOV) as applied in four distinct contexts: estate and gift taxation; shareholder dissent and oppression; divorce; and financial reporting. Here, you will discover some of the intricacies of performing services in these venues. Features new case law in topics including personal good will and estate and gift tax, and updated to cover the new standards issued since the first edition Includes an updated compendium discussing the standards of value by state, new case law covering divorce, personal goodwill, and estate and gift tax, and coverage of newly issues financial standards Shows how the Standard of Value sets the appraisal process in motion and includes the combination of a review of court cases with the valuator's perspective Addresses the codification of GAAP and updates SOV in individual states Get Standards of Value, Second Edition and discover the underlying intricacies involved in determining "value."

With an added Appendix and 40+ page Prologue, the second edition of the 2019 Best Indie Book Award (BIBA) winner for the category of Business takes readers through the COVID-19 crisis, building on the key tenets of the first edition. Value Trap received acclaim from the prestigious Next Generation Indie Book Awards, a Finalist in the category of Business. The text was also a Blue Ink Notable Book as well as a Readers' Favorite 5 Stars, named Honorable Mention in the Non-Fiction - General genre. More detail and new commentary, the second edition of Value Trap is a must read for any serious investor. Brian Michael Nelson, CFA, delivers again.From the back cover: "Nelson's career ranges from his beginnings as an analyst at Driehaus Capital Management to his career as director of global equity and credit research at Morningstar, to the recent establishment of his own investment publishing research firm, Valuentum Securities. Here, the equity-markets veteran explores his analytical framework for evaluating stocks, cautioning against investors getting lured into "value traps," scenarios where seemingly inexpensive stocks attract bargain hunters but continue to decline. Nelson maintains that shortcomings in prevalent financial analysis and investing include misguided focus on historical data, misinterpretation of common metrics, overreliance on indexing, and myopic pursuit of dividend-paying stocks. Instead, he believes enterprise valuation, which considers cash-based sources of intrinsic value of a company, should prevail. Well-researched and organized, the book offers a compelling wealth of information and serious discussion of market theory. It will likely overwhelm all but the most seasoned investors, and cynics may see it as a device to recruit readers to the author's business. Nonetheless, it stands on its considerable merits as a well-written and cogent articulation of a distinct perspective on equity analysis." - BlueInk Review of the first edition as published in the June 2019 spread of Booklist Magazine

"Aswath Damodaran is simply the best valuation teacher around. If you are interested in the theory or practice of valuation, you should have Damodaran on Valuation on your bookshelf. You can bet that I do." -- Michael J. Mauboussin, Chief Investment Strategist, Legg Mason Capital Management and author of More Than You Know: Finding Financial Wisdom in Unconventional Places In order to be a successful CEO, corporate strategist, or analyst, understanding the valuation process is a necessity. The second edition of Damodaran on Valuation stands out as the most reliable book for answering many of today?s critical valuation questions. Completely revised and updated, this edition is the ideal book on valuation for CEOs and corporate strategists. You'll gain an understanding of the vitality of today?s valuation models and develop the acumen needed for the most complex and subtle valuation scenarios you will face.

Valuation lies at the heart of much of what we do in finance, whether it is the study of market efficiency and questions about corporate governance or the comparison of different investment decision rules in capital budgeting. In this paper, we consider the theory and evidence on valuation approaches. We begin by surveying the literature on discounted cash flow valuation models, ranging from the first mentions of the dividend discount model to value stocks to the use of excess return models in more recent years. In the second part of the paper, we examine relative valuation models and, in particular, the use of multiples and comparables in valuation and evaluate whether relative valuation models yield more or less precise estimates of value than discounted cash flow models. In the final part of the paper, we set the stage for further research in valuation by noting the estimation challenges we face as companies globalize and become exposed to risk in multiple countries.

This second edition - completely up to date with new exercises - provides a comprehensive and self-contained treatment of the probabilistic theory behind the risk-neutral valuation principle and its application to the pricing and hedging of financial derivatives. On the probabilistic side, both discrete- and continuous-time stochastic processes are treated, with special emphasis on martingale theory, stochastic integration and change-of-measure techniques. Based on firm probabilistic foundations, general properties of discrete- and continuous-time financial market models are discussed.