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VALUATION: THE ART AND SCIENCE OF CORPORATE INVESTMENT DECISIONS

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PROJECT AND ENTERPRISE VALUATION

Most valuation books focus on the valuation of entire businesses, of enterprise valuation. But by far, the greatest application of valuation methods today is aimed at individual investment projects. With this in mind, we have developed a book that is designed for readers interested in project as well as enterprise valuation. This broader focus better fits the economic realities of the modern corporation, which acquires productive capacity in one of two basic ways-through internal growth, which requires the evaluation of project value, and through acquisitions of operating business units, which require the evaluation of business or enterprise value

We see our potential audience comprised of two key groups:

- Business professionals who, because of their business needs, want a state-of-the-art book on the practical implementation of advanced valuation methods.
- Students in MBA and upper-division undergraduate finance elective courses that focus on the valuation and analysis of investment opportunities. Such courses may be lecture/problem or case based. Our book would be appropriate as the primary information source for the former and as a supplement for the latter.

A HOLISTIC APPROACH TO VALUATION

Our vision for this book is to provide an up-to-date, integrated treatment of the valuation of investment opportunities that seriously considers industry practice as well as recent advances in valuation methods. We understand that investments cannot be valued in a vacuum, and wise investment decisions must thus account for how the investments relate to the firm's current and future strategies along a number of dimensions:
- What are the relevant risks of the project, and can the firm hedge these risks?
- How can the investment be financed, and how does financing contribute to its value?
- How does the investment affect the firm's financial statements?
- Will the investment initially improve the firm's earnings per share, or will it lead to a short-term reduction in earnings?
- Is there flexibility in the way in which the project can be implemented, and how does this flexibility contribute to value?
- If we choose to delay the initiation of the investment, will the opportunity still be available in the future?
- Do they exploit the firm's existing comparative advantages, and do they create new comparative advantages that will generate valuable projects in the future?

In addition to these dimensions, we offer a broad spectrum of valuation approaches Although financial economists and business practitioners recognize that evaluating invest- ment opportunities requires much more than just discounting cash flows, they often pay little attention to other elements of the valuation process. Our focus is multifaceted in that we amplify important areas that often receive short shrift in the valuation process.

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Availability

10001332

332.6 TIT v 2nd

RLC MM (Rak Buku Umum)

Available

Detail Information

Series Title

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Statement of Responsibility

Sheridan Titman

Call Number

332.6 TIT v 2nd

Publisher

Boston : Pearson., 2011

Collation

xxviii, 520 p. : ill ; 25cm.

Language

English

ISBN/ISSN

978-0-13-231147-2

Classification

332.6

Content Type

-

Edition

2nd. ed.

Subject(s)

Corporate Finance
Buku Umum
Financial Management

Specific Detail Info

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