The ability to value any asset is an essential skill in a wide variety of professional environments, from corporate finance to portfolio management to strategy. And while the reasons for doing valuation are as wide-ranging and varied as business itself, the fundamental precepts underlying valuation are surprisingly similar in both form and function.

Damodaran on Valuation, Second Edition provides you with today's most straightforward and comprehensive examination of the approaches and models necessary for performing valuations. Written by renowned teacher, author, and valuation authority Aswath Damodaran, and fully revised and updated from its top-selling first edition which has become the essential reference for any professional needing accurate and reliable valuation information this invaluable book now provides you with:

* In-depth coverage of different distinct valuation approaches and key models within each

* Techniques for accurately assessing the effect on value of employee stock options and other equity-based compensation

* Methodologies for using valuation models to value intangible assets-patents, copy- rights, trademarks, licenses, brand names, and more

* Sound strategies for identifying and mea- suring the value of control in any business and why the expected value of control plays a role in many different valuation contexts

* Discussion of how liquidity-or, more accurately, illiquidity-affects value, along with ways to measure this impact on value

* Potential sources of the ever-elusive "synergy" when combining two entities, how best to value each type of synergy, and an examination of why firms so often overpay for synergy

* Techniques for measuring the costs of accounting opacity and business complexity, and accurately discounting the value of complex firms to promote transparency at every level

* A commonsense framework you can use to sift through numerous possible valuation models to determine the best model for your valuation task.

For more than a decade, Damodaran on Valuation has been the standard valuation reference for professionals in virtually every field. Business realities have changed dramatically over that time, but the principles underlying valuation have not. Let this comprehensively revised and updated edition give you the knowledge and tools you need to address today's increasingly complex-and uncompromising-corporate and investment valuation environment.

From Back Cover :



Damodaran on Valuation express all aspects of valuation, from the fundamentals of estimating cash flows and sicount rates to the principles underlying the use of multiples. In addition, the book addresses what are often left as loose ends in valuation - the value of control and synergy; how best to deal with cash, non-operating assets, and employee stock options when valuing a company; and the consequences of illiquidity, distress, and lack of transparency for asset value.

Whether you are a manager looking to maximize a compnay's value or an investor looking to beat the market, Damodaran on Valuation will give you the detailed, logical, and sensible answers you need to arrive at an accurate valuation.