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Measuring Company Exposure to Country Risk: Theory and Practice

Books: Exposure Company to Country Risk

Books of Aswath Damodaran

Book Info

If the tech-stock swoon merely whets your appetite for this roller coaster of a market sector, and your eyes don't glaze over at the very sight of formulas like "Return on Capital = EBIT (1 - t) / Capital Invested," then The Dark Side of Valuation is the investment guide you've been waiting for. Whether considering New Economy firms at their peak or their valley, writes Aswath Damodaran, the problem has always been determining their true value with equitable dispassion. A leading expert on the topic, Damodaran begins by noting that standard corporate valuations are determined by four factors: cash flow from existing investments, growth expected from this cash flow, length of time this growth is sustained, and cost of capital to sustain it. In what he admits is not always an easy read, Damodaran then details various ways to adapt conventional valuation methods for companies that lack key traditional variables (such as profits, track records, and even competitors with which they can be compared) in order to arrive at realistic valuations. Those not scared off by charts comparing the historical risk for T-bills and T-bonds since 1928 will find this book worth a look. --Howard Rothman


Book Info

A celebrated university finance professor discusses the valuation of all investments not just securities. This up-to-the-minute text uses examples from a diversity of existing companies to demonstrate the use of the models as well as their possible pitfalls. Thoroughly examines firms where direct application of typical models traditionally breakdown--problems in valuing these enterprises are laid out and potential solutions suggested. Special sections deal with valuation issues that have not received adequate coverage such as the value of synergy in controlling mergers and the value of product options that a company may possess. Includes optional software developed and tested by the author.


Book Info

Damondaran on Valuation will not only convince you of the vitality of the many valuation models available to you, it will help ensure that you develop the acumen needed to select the right model for any valuation scenario.

Written by a gifted teacher and respected valuation authority, Damodaran on Valuation offers systematic examination of the three basic approaches to valuation - discounted cash-flow valuation, relative valuation, and contingent claim valuation - and the various models within these broad categories.

Using numerous real-world examples involving both US and International firms, the book illuminates the purpose of each particular model, its advantages and limitatations, the step-by-step process involved in putting the model to work, and the kinds of firms to which it is best applied. Among the tools presented are designed to:
* Estimate the cost of equity - including the capital asset pricing model and arbitrage pricing model
* Estimate growth rates - with coverage of how to arrive at a weighted average of growth rates by blending three separate approaches
* Value equity - focusing on the Gordon Growth Model and the two-and three-stage dividend discount model
* Measure free cash flow to equity - cash flows that are carefully delineated from the dividends of most firms
* Value firms - including free cash flow to firm models, which are especially suited to highly leveraged firms
* Estimate the value of assets by looking at the pricing of comparable assets - with insight into the use and misuse of price/earning and price/book value ratios, and underutilized price-to-sales ratios
* Measure the value of assets that share option characteristics - including a comparative look at the classic Black-Scholes and simpler binomial models.

Supported by an optional IBM-compatible disk, which consists of spreadsheet programs designed to help users apply the models highlighted in the book, Damodaran on Valuation provides practitioners involved in securities analysis, portfolio management, M&A, and corporate finance with the knowledge they need to value any asset.

Other Books

Book Info

Proven strategies for managing corporate image in today's fast, exciting (and dangerous) business news revolution.
Once a stodgy and sleepy thing, today's business news media is anything BUT. Fueled by a national obsession for investing, business news has become the hottest media sector in America. Which is wonderful news for companies that can get their intended message across, and seriously bad news for those that can't. They risk being ignored, misrepresented, or-- worst of all--left vulnerable to damaging hearsay and rumor.

TOTAL EXPOSURE is the first book to offer senior executives and PR professionals both a clear understanding of the transformation of business journalism AND practical guidelines on strategically managing their company's image in this new environment. It explains how to: * Avoid overexposure by targeting credible journalists and media forums * Find the right spokespeople and train them to say the right things * Think like a reporter, understanding story angles and agendas, and more.

© Amazon.com, Inc

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