Dark Side of Valuation, The: Valuing Young, Distressed, and Complex Businesses, Third edition

Index

Symbols

3M case study

DCF (discounted cash flow) valuation

bottom-up beta estimate, 43–44

cash flows, 36–38

cost of capital, 45–46

cost of debt, 45–46

cost of equity, 44

growth rates, 53–55

high growth versus terminal value assumptions, 59

valuation summary, 61–62

Monte Carlo simulation, 93–97

pre- and post-market crisis valuation, 225–226

A

abandonment option, 150–151

customer incentives, 152

defined, 135

escape clauses, 151

implications, 151–152

payoff diagram, 150

switching options, 152–153

absolute revenue changes, 346

accounting rules, 525

financial services firms, 529–530

firms with intangible assets, 563–564, 572

Amgen case study, 583–584

Coca-Cola case study, 578–579

consequences for valuation, 581–586

Cyber Health Consulting (CHC) ...