A thoroughly revised, updated, and expanded new edition of the bestselling guide. Valuation is at the heart of any investment decision. But asset pricing is becoming increasingly complex in today's financial markets. Fortunately, the number-one guide to valuation among investors and students of the financial markets, is now available in a fully revised and updated second edition. Investment Valuation, Second Edition provides a comprehensive introduction to the full range of modern valuation models and shows how to choose the right one for virtually every conceivable asset valuation scenario, including real options, start-up firms, unconventional assets, private equity, and real estate. This revised edition includes ten new chapters along with new case study examples, and thorough coverage of new valuation tools designed for markets that pose uniquely complex problems, including dot-coms, financial service firms, and telecommunication companies.



Using updated real-world examples and the most current valuation tools, this Second Edition addresses new sectors such as dot-coms, private companies, and financial service firms that pose complex valuation problems. Damodaran guides you through the theory and application of different valuation models and clarifies the entire process from cash flow valuation and relative valuation to acquisition valuation.



An invaluable resource for authoritative information, analysis, and insight, Investment Valuation, Second Edition, covers all the key topics in asset valuation, including:



* Choosing the right valuation model for any given asset valuation scenario

* Applying valuation techniques to start-up firms, unconventional assets, private equity, and real estate

* Risk and return domestically and abroad

* Value enhancement measures such as economic value-added (EVA) and cash flow return on investment (CFROI)

* Using real option theory and option pricing models in valuing individual assets such as patents as well as entire businesses



Investment Valuation, Second Edition, thoroughly explains the valuation process from the ground up and offers you some of the most flexible approaches to valuing assets.In fact, the valuations will be constantly updated online, so you can have a closer link to real-time valuations.



Filled with case studies and proven valuation models, this indispensable guide is a must for anyone wishing to gain a better understanding of investment valuation and its methods. Take the insight and advice of a recognized authority on the valuation process and put them to work for you today.



About the Author

ASWATH DAMODARAN is Professor of Finance at New York University?s Leonard N. Stern School of Business. He has been the recipient of numerous awards for outstanding teaching, including the NYU university-wide Distinguished Teaching Award, and was named one of the nation?s top business school teachers by Business Week in 1994. In addition, Damodaran teaches training courses in corporate finance and valuation at many leading investment banks. His publications include Damodaran on Valuation; Investment Valuation; Corporate Finance; Investment Management; and Applied Corporate Finance, all published by Wiley, and The Dark Side of Valuation.