Valuation Methods and Models in Applied Corporate Finance

by Chacko, George; Evans, Carolyn L.

• ISBN13: 9780132905220
• ISBN10: 0132905221
• Edition: 1st
• Format: Hardcover
• Copyright: 2014-04-09
• Publisher: Ft Pr

Summary

Master corporate valuation: the financial art and science of accurately valuing any business. George Chacko's Applied Corporate Finance: Valuationis the first valuation book to combine true academic rigor with the practical skills you need to successfully value companies in the real world. Renowned financial instructor and investment manager George Chacko focuses on concepts, techniques, tools, and methodologies that lead directly to accurate valuations, and explains each key concept with up-to-date examples. One step at a time, Chacko develops a practical, rigorous approach to conducting valuation, addressing the projection of financial statements, calculation of free cash flows, risk-adjusted cost of capital, and leading methodologies including WACC, flow-to-equity, and Adjusted Present Value (APV). By avoiding elementary content that financial managers, analysts, and MBA-level finance students already know, this book can focus more tightly on the realistic techniques and advanced issues practitioners are actually concerned with. Coverage includes: market value and accounting balance sheets, cash cycles, the DuPont formula, financial distress, and capital as a risk buffer; constructing pro-formas, projecting and bridging financing shortfalls, and planning sustainable growth; sources/uses of cash, cash income statements, pro-forma balance sheet changes, working capital, depreciation, and capital expenditures; risk-free cost, investment risks, and diversifiable vs. idiosyncratic risks; NPV, APV, Optimal Debt Ratios, Capital Structure Dynamics, Terminal Value Calculations, and more. For all finance professionals, analysts, and MBA students who need to sharpen their skills in valuation and related areas of corporate finance, accounting, or strategic planning.

Author Biography

GEORGE CHACKO(San Jose, CA) is Associate Professor of Finance at Santa Clara University's Leavey School of Business and Managing Partner at Confluentis Investments LLC. He has served as Associate Professor at Harvard Business School, Managing Director at State Street Bank, and Chief Investment Officer at Auda Alternative Investments. Chacko holds a Ph.D. and M.A. in Business Economics from Harvard and a B.S. from MIT. He currently teaches seminars on valuation for companies throughout the US, and is author of several books, including The Global Economic System (FT Press, with Carolyn Evans, Hans Gunawan, and Anders Sjoman).

Table of Contents

Preface      x
Chaper 1 Introduction     1
Chaper 2 Financial Statement Analysis     15
Chaper 3 Financial Forecasting     45
Chaper 4 Free Cash Flows     69
Chaper 5 Cost of Capital     91
Chaper 6 Putting It All Together: Valuation Frameworks     127
Index     157