Part three of the book provides empirical evidence of why stock prices reflect long-term value creation as described in the book. Three are from people who reviewed only one product, one is completely devioid of content. Part six of the book is focused on special situation analysis such as valuing high growth companies, companies in emerging markets, cyclical companies and banks. The authors take the practical view that mispricings do occur in the market and are eventually corrected. The book is much weaker when it discusses how to actually forecast cash flows and how the stock market functions. For those who use the concept of intrinsic value, cash flow valuation has become the standard methodology and Valuation is the standard source material. Business Valuation on Wall Street tells you how Wall Street approaches the question.
Was hoping for something a little more suited toward,buying a small business. Theory of Valuation is the best on theory. It requires a large number of assumptions of future performance. Business Valuation on Wall Street tells you how Wall Street approaches the question. The 6th edition of Valuation, now celebrating 25 years in print, has been thoroughly revised to reflect business conditions in today's volatile global economy. Valuation, Fifth Edition is filled with expert guidance that managers at all levels, investors, and students can use to enhance their understanding of this important discipline. The principles also help investors assess the potential value of alternative investments.
While I own the previous editions and workbooks, the new edition is greatly expanded including practical case studies as well as interesting insight into complex valuation nuances such as real options. This is a fifth edition. Not a bad book for finance practitioners however. Everything else is mere detail. Part four of the book is written primarily for managers. Either Test banks or Solution manuals are Chapter wise and you will receive a full pack. They bravely quote research papers that they don't really understand , but in the end conclude that the markets are so close to rational so one can proceed as if.
The first four reviews are implausibly quick, given the length of this book, and are all five-star. Damodaran on Valuation concentrates on security valuation and is the most academic. Thinking about Return on Invested Capital and Growth. Honestly, I was a bit disappointed because this book is more theoretical than it is practical. Along with all new case studies that illustrate how valuation techniques and principles are applied in real-world situations, this comprehensive guide has been updated to reflect the events of the real estate bubble and its effect on stock markets, new developments in corporate finance, changes in accounting rules, and an enhanced global perspective.
As the name implies the book teaches you how to value companies based on the principles of discounted cash flow analysis. The content is interesting but the authoritative voice of the authors is a clear sign that they do not know as much as they believe they do. Companies create value by investing capital to generate future cash flows at rates of return that exceed their cost of capital. When the book was originally published more than 20 years ago it was meant to be a handbook for McKinsey consultants. I think most value investors intuitively believe that stock prices should reflect value creation over time. Going through techniques and methodology used within solution manuals not only help students to solve their academic problems but it also broadens their vision and helps develop problem solving skills meanwhile pass your assignments easily and get complete grade on it.
If you work on this kind of project, you need this book. If you want to hone your valuation skills today and improve them for years to come, look no further than this book. You will find step by step Solutions for each chapter's problems in any of our official instructor Solution Manuals. The fifth reviewer has reviewed one other product, a razor. The weight and slick production values of tihs book might cause some to forget that. The book also suffers from being written by committee.
The book is worth four stars, because it is in no way a perfect book. Collectively they have more than 50 years of experience in consulting and financial education. In Chapter 1, we introduced the fundamental principles of corporate finance. Part Four: Advanced Valuation Issues. Corporate finance is simpler and more intuitive than most people think. That makes for dull reading.