You are previewing A Pragmatic Look at Valuation (Collection).
O'Reilly logo
A Pragmatic Look at Valuation (Collection)

Book Description

A new collection of corporate finance best practices for establishing accurate valuations… 2 authoritative books, now in a convenient e-format, at a great price!

2 authoritative eBooks help you accurately value companies and assets for M&A, restructurings, and key corporate investments

Valuation decisions can make or break the success of any merger, acquisition, restructuring, or large-scale corporate investment. Few areas of finance are so important -- or so challenging. This unique 2 eBook package brings together comprehensive and up-to-date guidance for arriving at valuations you can rely upon. Valuation: Methods and Models in Applied Corporate Finance is focused entirely on achieving useful results -- avoiding ivory-tower theory you don't need and elementary material you already know. George Chacko and Carolyn L. Evans present a 100% practical and rigorous approach to conducting valuation. Step-by-step, they address the projection of financial statements, calculating free cash flows, risk-adjusted cost of capital, and several leading methodologies, including WACC, flow-to-equity, and APV. Throughout, each concept is explained with realistic examples, and demonstrated with accessible math. No previous mathematical understanding is required beyond basic algebra, probability, and statistics: wherever more advanced math is required, the authors explain it fully. Next, in Valuation for Mergers and Acquisitions, Second Edition, Barbara S. Petitt and Kenneth R. Ferris present a complete, practitioner-oriented view of valuation in the context of M&A and corporate restructurings. Petitt and Ferris guide you through performing a target's financial review, developing forecasts, and assessing the sensitivity of these forecasts to key assumptions. You'll review both traditional and alternative valuation methods, from the basic P/E ratio to a wide range of discounted cash flow models, economic value analysis, and real option analyses. The authors also address closely-related issues such as accounting, financial reporting, and tax considerations. Throughout, you'll find realistic advice for making more informed choices, handling common dilemmas, and overcoming common errors -- all illuminated with real-world examples and illustrations. Whatever your role in establishing valuations or making corporate investment decisions, this collection will help you reduce your risks and improve your performance.

From world-renowned valuation expertsGeorge Chacko, Carolyn L. Evans, Barbara S. Petitt,andKenneth R. Ferris

Table of Contents

  1. About This eBook
  2. Title Page
  3. Copyright Page
  4. Contents
  5. Valuation: Methods and Models in Applied Corporate Finance
    1. Copyright Page
    2. Dedication Page
    3. About the Authors
    4. Preface
    5. 1. Introduction
      1. 1.1 Introduction
      2. 1.2 Present Value
      3. 1.3 Financial Statements and Analysis
      4. 1.4 Financial Forecasting
      5. 1.5 Free Cash Flows
      6. 1.6 Discount Rates
      7. 1.7 Valuation Frameworks
      8. 1.8 Summary
      9. Endnotes
    6. 2. Financial Statement Analysis
      1. 2.1 Introduction
      2. 2.2 Financial Statement Analysis
      3. 2.3 Cash Flow Statement
      4. 2.4 Market Value Balance Sheets
      5. 2.5 Financial Ratios
      6. 2.6 Financial Distress
      7. Endnotes
    7. 3. Financial Forecasting
      1. 3.1 Introduction
      2. 3.2 Constructing Pro Forma Financials
      3. 3.3 Bridging Financial Shortfalls
      4. 3.4 Financial Ratios
      5. 3.5 Sustainable Growth
      6. Endnote
    8. 4. Free Cash Flows
      1. 4.1 Introduction
      2. 4.2 Free Cash Flow Definition
      3. 4.3 Balance Sheet View of Free Cash Flow
      4. 4.4 Free Cash Flow Calculation: Sources/Uses of Cash
      5. 4.5 Free Cash Flow Calculation: A General Procedure
      6. 4.6 Free Cash Flow Calculation: Another View
      7. Endnotes
    9. 5. Cost of Capital
      1. 5.1 Introduction
      2. 5.2 Risk and Return
      3. 5.3 Risk Reduction through Diversification
      4. 5.4 Systematic Versus Unsystematic Risk
      5. 5.5 The Capital Asset Pricing Model
      6. 5.6 The Cost of Capital for a Traded Asset
      7. 5.7 The Cost of Capital for a Nontraded Asset
      8. 5.8 The Asset Cost of Capital Formula
      9. Endnotes
    10. 6. Putting It All Together: Valuation Frameworks
      1. 6.1 Introduction
      2. 6.2 APV
      3. 6.3 Terminal Value
      4. 6.4 Weighted Average Cost of Capital (WACC)
      5. 6.5 Flow to Equity
      6. Endnotes
    11. Index
    12. FT Press
  6. Valuation for Mergers and Acquisitions, Second Edition
    1. Copyright Page
    2. About the Authors
    3. Preface
    4. 1. Valuation: An Overview
      1. Market View
      2. 1. Why Companies Merge or Acquire: A Historical Perspective
      3. 2. Do Mergers and Acquisitions Create Shareholder Value?
      4. 3. Merger and Acquisition Premiums
      5. 4. Valuation Process
      6. 5. Valuation Methods: An Overview
      7. Summary
      8. Endnotes
    5. 2. Financial Review and Pro Forma Analysis
      1. Market View
      2. 1. Financial Review
      3. 2. Pro Forma Analysis
      4. Summary
      5. Endnotes
      6. Appendix 2A: Mattels’ Financial Statements
      7. Appendix 2B: Preparation of a Cash Flow Statement
      8. Summary
      9. Appendix 2C: Account Forecasting Alternatives
    6. 3. Traditional Valuation Methods
      1. Market View
      2. 1. Earnings Multiples
      3. 2. Discounted Cash Flow Models
      4. Summary
      5. Endnotes
      6. Appendix 3: Some Frequently Asked Questions and Answers About the Free Cash Flow to the Firm Model and Earnings Multiples
    7. 4. Alternative Valuation Methods
      1. Market View
      2. 1. Relative Valuation Methods
      3. 2. Direct Valuation Methods
      4. Summary
      5. Endnotes
      6. Appendix 4: How to Use the Black-Scholes Model to Value a Real Option
      7. Black-Scholes Model
      8. Luehrman’s NPVq/Cumulative Volatility Approach
    8. 5. Accounting Dilemmas in Valuation Analysis
      1. Market View
      2. 1. Assessing Economic Reality
      3. 2. Income Statement Transformations: Forecasting Permanent Earnings and Free Cash Flows
      4. 3. Balance Sheet Transformations: Forecasting the Equity Value of a Company
      5. 4. Cash Flow Statement Transformations: Forecasting CFFO and Free Cash Flow
      6. Summary
      7. Endnotes
    9. 6. Financial Reporting and Tax Considerations for Mergers and Acquisitions
      1. Market View
      2. 1. Financial Reporting: To Combine or Not to Combine?
      3. 2. Consolidated Financial Reporting: Purchase Accounting
      4. 3. Noncontrolling Interest
      5. 4. Accounting for Goodwill
      6. 5. Tax Considerations of Mergers and Acquisitions
      7. 6. Tax Considerations of Goodwill
      8. Summary
      9. Endnotes
    10. 7. Some Final Thoughts
      1. Market View
      2. 1. Valuation: A Debriefing
      3. 2. Some Caveats to Consider
      4. 3. Closure
      5. Endnote
    11. Bibliography
    12. Index
    13. FT Press