Dark Side of Valuation, The: Valuing Young, Distressed, and Complex Businesses, 3rd edition

Published by Pearson FT Press (May 4, 2018) © 2018

  • Aswath Damodaran Stern School of Business, New York University

eTextbook

$57.99

  • Available for purchase from all major ebook resellers, including InformIT.com.
  • To request a review copy, click on the "Request a Review Copy" button.
$47.99

  • A print text (hardcover or paperback) 
  • Free shipping
  • Also available for purchase as an ebook from all major ebook resellers, including InformIT.com
The Definitive Guide to Valuing Hard-to-Value Companies: Fully Revised for Today’s Financial Markets
Valuing money-making companies that have long histories and established business models is straightforward. It is when you encounter difficult-to-value companies that you feel the urge to go over to the dark side of valuation—where you abandon first principles and create new metrics. Aswath Damodaran looks at a range of these companies, from start-ups in new businesses to distressed companies, from banks facing regulatory turmoil to commodity firms, and from emerging market upstarts to multinationals that spread across geographies and businesses. With each grouping, he helps you examine the call of the dark side and its practices and frameworks to value these firms.
To answer these questions, Aswath looks at companies across the life cycle and in different markets, from Uber and Shake Shack at one end of the spectrum to Vale, Royal Dutch, and United Technologies at the other end.
In the process, you learn how to
  • Deal with “abnormally low” and negative risk-free rates in valuation
  • Adapt to dynamic and changing risk premiums
  • Value young companies that are disrupting existing businesses
  • Analyze commodity and cyclical companies across cycles
  • Value a company as the sum of its parts or as an aggregation of its users/subscribers and customers
  • Determine the difference between pricing and valuation, and why some investments can only be priced
Learn how to
  • Deal with “abnormally low” and negative risk-free rates in valuation
  • Adapt to dynamic and changing risk premiums
  • Value young companies that are disrupting existing businesses
  • Analyze commodity and cyclical companies across cycles
  • Value a company as the sum of its parts or as an aggregation of its users/subscribers and customers
  • Determine the difference between pricing and valuation, and why some investments can only be priced
1. Updated or new examples in every chapter2. Two new chapters, one on valuing idea/concept companies at the start of the life cycle section and one on valuing unusual businesses in the last section.
3. Discussions of how to deal with negative or very low interest rates and frontier market valuations.4. Online support with YouTube videos, blog posts and additional material for the book.
  1. 1 The Dark Side of Valuation Enlightenment: The Tools
  2. Intrinsic Valuation
  3. Probabilistic Valuation: Scenario Analysis, Decision Trees & Simulations
  4. Relative Valuation
  5. Option Valuation
  6. The Dark Side of Macro Inputs
  7. A Shaky Base: A Risky Risk free Rate
  8. Risky Ventures: Assessing the Price of Risk
  9. Macro Matters: The Real Economy
  10. The Dark Side across the Life Cycle
  11. Baby Steps - Valuing start-ups
  12. Off to School – Valuing young companies
  13. Shooting Stars - Valuing growth companies
  14. Not so staid - Valuing mature companies
  15. The inevitable end - Valuing companies in distress and decline
  16. The Dark Side across company types
  17. Ups and Down: Valuing Cyclical and Commodity companies
  18. Mark to Market: Valuing Financial Service companies
  19. Invisible Investments: Valuing firms with intangible assets
  20. Volatility Rules: Valuing Emerging Market companies
  21. The Octopus: Valuing Multi-business, global companies
  22. Puzzle Palace: Valuing the Unusual
  23. The Finale
  24. Lighting the Way: Vanquishing the Dark Side
Aswath Damodaran is Professor of Finance at the Stern School of Business at New York University. He teaches the corporate finance and equity valuation courses in the MBA program. He received his MBA and PhD from the University of California at Los Angeles. He has written several books on corporate finance, valuation, and portfolio management. He has been at NYU since 1986 and has received the Stern School of Business Excellence in Teaching Award (awarded by the graduating class) eight times. He was profiled in BusinessWeek as one of the top twelve business school professors in the United States in 1994 and was chosen the most popular business school professor in 2012.

Need help? Get in touch

Video
Play
Privacy and cookies
By watching, you agree Pearson can share your viewership data for marketing and analytics for one year, revocable by deleting your cookies.

Pearson eTextbook: What’s on the inside just might surprise you

They say you can’t judge a book by its cover. It’s the same with your students. Meet each one right where they are with an engaging, interactive, personalized learning experience that goes beyond the textbook to fit any schedule, any budget, and any lifestyle.