Preface | |
Overview of Valuation | |
Introduction | |
The Nature of Major | |
Investment Decisions Dealing with Complexity | |
Process and Discipline Case Study CP3 Corporation, Inc. Summing Up and Looking | |
Forward | |
Summary | |
Project Analysis Using Discounted Cash Flow (DCF) | |
Forecasting and Valuing | |
Cash Flows Discounted | |
Cash Flows and Valuation Defining Investment | |
Cash Flows Comprehensive Example Forecasting Project Free | |
Cash Flows Valuing Investment | |
Cash Flows Summary Problems | |
Project Risk Analysis | |
Introduction | |
Uncertainty and Investment | |
Analysis Sensitivity | |
Analysis Learning More about the Project Decision | |
Trees Valuing Project Flexibility | |
Summary Problems | |
Appendix: An Introduction to Simulation Analysis and Crystal Ball | |
Cost of Capital | |
Estimating a Firm's Cost of Capital | |
Introduction Value, Cash Flows, and Discount Rates Estimating the WACC | |
Summary | |
Appendix: Extensions and Refinements of the WACC Estimate | |
Estimating Required Rates of Return for Projects | |
Introduction | |
The Pros and Cons of Multiple Risk-Adjusted Costs of Capital Choosing a Project Discount Rate Hurdle Rates and the Cost of Capital Summary Problems | |
Enterprise Valuation | |
Relative Valuation Using Market Comparables | |
Introduction | |
Valuation Using Comparables Enterprise | |
Valuation Using EBITDA Multiples Equity | |
Valuation Using the Price-Earnings Multiple Pricing an Initial Public Offering Other Practical Considerations | |
Summary Problems | |
Enterprise Valuation | |
Introduction | |
Using a Two-Step Approach to Estimate Enterprise Value | |
Using the APV Model to Estimate Enterprise Value Summary Problems | |
Valuation in a Private Equity Setting | |
Introduction | |
Overview of the Market for Private Equity Valuing | |
Investments in Start-ups and Deal Structuring Valuing | |
LBO Investments | |
Summary Problems | |
Earnings Dilution, Incentive Compensation, and Project Selection | |
Introduction | |
Project Analysis Earnings per Share and Project Selection Economic | |
Profit and the Disconnect between EPS and NPV Practical Solutions | |
Using Economic Profit Effectively | |
Summary Problems | |
Futures, Options, and the Valuation of Real Investments | |
Using Futures and Contractual Options to Value Real Investments | |
Introduction | |
The Certainty-Equivalence Method Using Forward Prices to Value | |
Investment Projects Using Option Prices to Value | |
Investment Opportunities Caveats and Limitations Tracking Errors | |
Summary Problems | |
Option Basics A Quick Review | |
Multi-Period Probability Trees and Lattices | |
Calibrating the Binomial Option Pricing Model | |
Managerial Flexibility and Project Valuation: Real Options | |
Introduction Types of Real Options Valuing | |
Investments That Contain Embedded Real Options | |
Analyzing Real Options as American-Style Options | |
Using Simulation to Value Switching Options | |
Mistakes Made in Real Option Valuation | |
Summary Problems | |
Appendix: Constructing Binomial Lattices | |
Strategic Options: Evaluating Strategic Opportunities | |
Introduction | |
Where Do Positive-NPV Investments Come From? | |
Valuing a Strategy with Staged Investments Strategic Value | |
When the Future Is Not Well Defined Summary Problems | |
Epilogue Glossary | |
Index | |
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