000 11602nam a22001817a 4500
020 _a9780128023037
082 _a658.15
100 _aKumar, Rajesh
245 _aValuation: theories and concepts
260 _aAmsterdam, (USA)
_bAcademic Press (Elsevier)
_c2016
300 _axvii,497p.
_b20cm. Hard cover
500 _aAlpha Invoice.2231- 11th Feb 16 Rs.6,022.96/- Valuation: Theories and Concepts provides an understanding on how to value companies that employ non-standard accounting procedures, particularly companies in emerging markets and those that require a wider variety of options than standard texts provide. The book offers a broader, more holistic perspective that is perfectly suited to companies and worldwide markets. By emphasizing cases on valuation, including mergers and acquisition valuation, it responds to the growing expectation that students and professionals must generate comprehensive perspectives based on thorough investigations and a library of valuation theories. Readers will gain a better understanding of the development of complete analyses, including trend analysis of financial parameters, ratio analysis, and differing perspectives on valuation and strategic initiatives. Case studies include stock market performance and synergies and the intrinsic value of the firm are compared with offer price. In addition, full data sets for each chapter are available online.
505 _aValuation, 1st Edition Part I: Theories and Concepts 1. Perspectives on value and valuation Abstract 1.1 Introduction 1.2 Application of valuation 1.3 Approaches to valuation 1.4 Steps in value creation 1.5 Value drivers 1.6 Empirical evidence on value drivers 1.7 Strategic models of valuation 1.8 Stock price maximization 1.9 Linkage between strategic management and shareholder value 1.10 Challenges in valuing intangibles 1.11 Innovation and value creation 1.12 Review of research studies on usage of valuation methods 1.13 Challenges for valuation 1.14 Review on theories of valuation 1.15 Most valuable companies Appendix: Financial statement analysis Analysis of growth potential Fundamentals of valuation Bond valuation and interest rates Basics of stock valuation Summary highlights of stock valuation References 2. Risk and return Abstract 2.1 Introduction 2.2 Accounting and risk measures 2.3 Measures of returns 2.4 Risk premium 2.5 Models of risk and return References 3. Efficient capital markets and its implications Abstract 3.1 Introduction 3.2 Forms of efficient market hypothesis 3.3 Tests of EMH 3.4 Review of research studies on market efficiency 3.5 Anomalies of EMH 3.6 Implications of EMH 3.7 Behavioral finance References 4. Estimation of cost of capital Abstract 4.1 Introduction References 5. Principles of cash flow estimation Abstract 5.1 Introduction 5.2 Adjustments to financial statements 5.3 Adjustments of expensed investments 5.4 Reflections on managed earnings 5.5 Estimating reinvestment needs for valuation 5.6 Forecasting growth References 6. Discounted cash flow valuation models Abstract 6.1 Introduction 6.2 Dividend discount model 6.3 FCF valuation models 6.4 Adjusted present value method 6.5 Value of nonoperating assets 6.6 Estimation of total value of firm 6.7 Theoretical perspectives on free cash flow valuation 6.8 Research studies on FCF models 6.9 Estimation of value of Hyundai Motors through FCFE and FCFF valuation models 6.10 Estimation of value of Sasol through the two-stage FCFF model References 7. Relative valuation Abstract 7.1 Introduction 7.2 Advantages and disadvantages of relative valuation 7.3 Drivers of relative valuation 7.4 Steps in relative valuation 7.5 Relative valuation techniques 7.6 Industry-specific multiples 7.7 Research studies on relative valuation 7.8 Principles of relative valuation 7.9 Cases of relative valuation References 8. Mergers and acquisition valuation Abstract 8.1 Introduction 8.2 Types of mergers and acquisitions 8.3 Synergies in mergers 8.4 Drivers of value creation in different types of M&A 8.5 Empirical evidence on value creation in M&A 8.6 M&A valuation 8.7 Valuation of M&A synergies 8.8 Payment to target firms 8.9 Bootstrapping 8.10 Empirical studies involving methods of payment 8.11 Empirical studies on performance of merged companies 8.12 Principles of evaluation of bids 8.13 Illustration of financial variables in merger analysis References 9. Real options valuation Abstract 9.1 Introduction 9.2 Real options as strategic investments 9.3 Limitations of discounted cash flow methods 9.4 Different types of real options 9.5 Solution approach to option valuation 9.6 Real options in different industry sectors 9.7 Factors affecting the value of real growth options 9.8 Real options in mergers and acquisitions 9.9 Empirical studies on real options 9.10 Real option valuation using decision tree approach 9.11 Real option valuation using Black Scholes model References 10. Valuation of different industry sectors Abstract 10.1 Valuation of internet companies 10.2 Valuation of financial institutions 10.3 Valuation of biotechnology companies 10.4 Valuation of real estate and construction sectors 10.5 Valuation of oil companies References 11. Valuation issues Abstract 11.1 Valuation of closely held or private companies 11.2 Valuing firms with negative earnings 11.3 Valuing cyclical firms 11.4 Valuing startup firms 11.5 Valuing multibusiness firms 11.6 Valuation in emerging markets 11.7 Valuing high growth companies 11.8 Errors in valuation References Part II: Case Studies on Valuation 12. Valuation of Walmart Abstract 12.1 Financial highlights 12.2 Equity value creation 12.3 Ratio analysis 12.4 Standardized income statements of Walmart 12.5 Valuation of Walmart 12.6 Discounted cash flow valuation 12.7 Two stage FCFE model 12.8 Relative valuation References 13. Valuation of Tata Motors Abstract 13.1 Global industry trends 13.2 Business overview 13.3 Competitor analysis 13.4 Financial performance analysis 13.5 Wealth creation in stock market 13.6 Ratio analysis 13.7 Estimation of cost of equity and WACC 13.8 Valuation of Tata Motors 13.9 Valuation using dividend discount models 13.10 FCFE valuation 13.11 Stable stage or constant growth model 13.12 Valuation using FCFF model 13.13 Relative valuation (Tables 13.16–13.18) References 14. Valuation of Samsung Electronics Abstract 14.1 Strategies for growth 14.2 Growth trend analysis 14.3 Ratio analysis (Tables 14.6–14.12) 14.4 Stock market wealth creation (Tables 14.13 and 14.14) 14.5 Discounted cash flow valuation 14.6 Estimation of cost of equity and cost of capital 14.7 Dividend discount model 14.8 Constant growth DDM 14.9 FCFE valuation 14.10 Estimation of adjusted net capital expenditure (Table 14.19) 14.11 Estimation of noncash working capital in millions of krw 14.12 Estimation of two stage FCFE valuation 14.13 Constant growth FCFE model 14.14 Zero growth FCFE model 14.15 FCFF valuation model (Tables 14.24 and 14.25) 14.16 Two stage FCFF valuation model 14.17 Stable phase inputs 14.18 FCFF one stage growth model 14.19 FCFF zero growth model 14.20 Relative valuation 15. Valuation of Industrial and Commercial Bank of China (ICBC) Abstract 15.1 Business segments 15.2 Strategy 15.3 Growth analysis (Tables 15.2–15.13) 15.4 Stock market wealth creation (Tables 15.14–15.16) 15.5 Valuation of ICBC 15.6 DDM 15.7 Relative valuation (Tables 15.18–15.26) References 16. Valuation of Gazprom Abstract 16.1 Growth rate analysis (Table 16.4) 16.2 Ratio analysis (Tables 16.5–16.9) 16.3 Stock wealth creation (Tables 16.10 and 16.11) 16.4 Estimation of cost of capital 16.5 WACC estimation 16.6 Valuation using discounted cash flow valuation 16.7 FCFE valuation 16.8 Relative valuation References 17. Valuation of Singapore airlines Abstract 17.1 Growth rate analysis (Tables 17.10–17.12) 17.2 Ratio analysis (Tables 17.13–17.16) 17.3 Stock wealth creation 17.4 Excess value added (Table 17.18) 17.5 Estimation of cost of capital 17.6 Valuation models 17.7 Stable stage dividend discount model 17.8 Stable stage FCFE and FCFF models 17.9 Estimation of FCFE in year 2014 17.10 Estimation of FCFF 17.11 Relative valuation (Tables 17.19 and 17.20) 17.12 Enterprise value multiples Reference 18. Wells Fargo Abstract 18.1 Current financial highlights 18.2 Financial highlights 18.3 Growth analysis (Tables 18.4 and 18.5) 18.4 Stock wealth creation 18.5 Dividend discount model 18.6 Estimation of growth rate from fundamentals (Table 18.11) 18.7 Relative valuation (Tables 18.13–18.15) References 19. Valuation of China life insurance Abstract 19.1 Financial highlights 19.2 Solvency ratio 19.3 Gross written premium 19.4 Analysis of cash flows 19.5 Estimation of embedded value 19.6 Stock return analysis 19.7 Estimation of cost of equity 19.8 Discounted cash flow model 19.9 Relative valuation References 20. Valuation of Franklin resources Abstract 20.1 Types of SIPs 20.2 Types of investment management and related services 20.3 Investment products 20.4 Stock wealth creation 20.5 Estimation of cost of equity 20.6 Valuation 20.7 Stable phase inputs 20.8 Relative valuation References 21. Valuation of Pfizer Abstract 21.1 Growth perspective of Pfizer 21.2 Performance analysis 21.3 Stock wealth creation 21.4 Estimation of cost of equity and WACC 21.5 Valuation models 21.6 Relative valuation Reference Part III: Case Studies on Mergers and Acquisition Valuation 22. Google’s acquisition of Motorola—a valuation perspective Abstract 22.1 Introduction 22.2 Merger highlights 22.3 Strategic reasons for the acquisition 22.4 Financial breakdown of Motorola deal 22.5 Valuation perspectives 22.6 Returns analysis for different time windows of acquisition announcement 22.7 Cumulative abnormal return analysis 22.8 Valuation—operating performance analysis 22.9 Two-stage valuation model for Motorola Mobility (Figure 22.10, Table 22.5) 22.10 Zero growth or perpetuity model valuation for Motorola 22.11 Relative valuation for Google Inc. 22.12 Cash flow to market value model Appendix 1: Cumulative returns for Google Inc. Appendix 2: Cumulative returns for Motorola Mobility Holdings Appendix 3: Cumulative abnormal returns (CAR) for Google Inc. Appendix 4: Cumulative abnormal returns (CAR) for Motorola Mobility Holdings References 23. HP Compaq merger—valuation Abstract 23.1 Industry overview 23.2 Company highlights 23.3 Merger highlights 23.4 Expected synergies 23.5 Impact of merger announcement on wealth creation Reference 24. Tata’s acquisition of Corus—a valuation analysis Abstract 24.1 Highlights of Corus 24.2 Highlights of Tata Steel 24.3 The bidding war 24.4 Market reaction during the acquisition process 24.5 Strategic reasons for the acquisition 24.6 Valuation perspective References Glossary
520 _aKey Features: Provides an understanding on how to value companies that employ non-standard accounting procedures, particularly companies in emerging markets Gives readers the ability to compare the intrinsic value of the firm with the offer price Showcases a variety of valuation techniques and provides details about handling each part of the valuation process Each case has data in excel spreadsheets for all companies, and data sets for each chapter are available online Finance professionals and students in upper-division undergraduate and graduate level courses worldwide on valuation.
650 _aFinance - Valuation
_aValuation techniques in Excel
_aValuation - case study
_aMergers and Acquisition Valuation - case study
856 _uhttp://store.elsevier.com/Valuation/Rajesh-Kumar/isbn-9780128023037/
942 _cBK
999 _c102753
_d102753