Hailed by financial professionals, professors, and students worldwide as the single best guide of its kind, Valuation provides crucial insights into how to measure, manage, and maximize a company’s value. This longawaited Third Edition has been comprehensively updated and expanded to reflect business conditions in today’s volatile global economy and to provide highly effective ways for managers at every level to create value for their companies.

Hailed by financial professionals, professors, and students worldwide as the single best guide of its kind, Valuation provides crucial insights into how to measure, manage, and maximize a company’s value. This longawaited Third Edition has been comprehensively updated and expanded to reflect business conditions in today’s volatile global economy and to provide highly effective ways for managers at every level to create value for their companies.

In addition to all new case studies, Valuation now includes in-depth coverage on valuing dot.coms, cyclical companies, and companies in emerging markets, along with detailed instructions on how to drive value creation and apply real optionsto corporate valuation. Here is expert guidance that management and investment professionals and students alike have come to trust, including:

Valuation’s acclaimed chapter devoted to insights into the strategic advantages of value-based management

Strategies for multibusiness valuation, and valuation for corporate restructuring, mergers, and acquisitions

International comparisons of the cost of capital, differences in accounting procedures, and how valuation works in different countries

Detailed, actual case studies showing how valuation techniques and principles are applied

Part One Company Value and the Manager’S Mission

1 Why Value Value? 3

2 The Value Manager 17

3 Fundamental Principles of Value Creation 47

4 Metrics Mania：Surviving the Barrage of Value Metrics 55

5 Cash Is King 73

6 Making Value Happen 89

7 Mergers|Acquisitions，and Joint Ventures 111

Part Two Cash Flow Valuation：A Practitioner’S Guide

8 Frameworks for Valuation  131

9 Analyzing Historical Performance 157

10 Estimating the Cost of Capital 201

11 Forecasting Performance 233

12 Estimating Continuing Value 267

13 Calculating and Interpreting the Results 289

Part Three Applying Valuation

14 Multibusiness V_aluation  301

15 Valuing Dot．coms 315

16 Valuing Cyclical Companies 327

17 Valuing Foreign Subsidiaries 337

18 Valuation Outside the United States  357

19 Valuation in Emerging Markets 377

20 Using Option Pricing Methods to Value Flexibility 399

21 Valuing Banks 433

22 Valuing Insurance Companies 455

Appendix A More on the Adjusted Present Value Model 477

Index 485