Damodaran on Valuation_ Security Analysis for Investment and Corporate Finance ( PDFDrive )

8 To provide an illustration, suppose a firm assumes a forfeiture rate of 3 percent and estimatesthevalue of the optionswhenthey ...

13 C.CunyandP.Jorion,“ValuingExecutiveStockOptions with Endogenous Departure,” Journal of Accounting and Economics20(1995):193–2 ...

20 C.Edwards,J.R.Graham,M.H.Lang,andD.Shackelford, “EmployeeStockOptionsandTaxes,”workingpaper,SSRN, 2004.Inthispaper,theyestima ...

27 Todothis,wehavetomakeseparateforecastsofthestated pretaxoperatingincomeandemployeeoptionexpenses,with the latter defined as a ...

34 FASB Financial Accounting Series, No. 1201-100, June 23, 2004. 35 See also A. Damodaran, “Marketability and Value: Measuring ...

CHAPTER 12 The Value of Intangibles Itishumannaturetodrawadistinctionbetweentheassets thatwecanseeandfeelandtheassetsthatwecanno ...

themostdifficultintangibleassetstovaluesincetheypossess option characteristics. IMPORTANCE OF INTANGIBLE ASSETS Thefirstpublicly ...

wagesandsalariespaidtotheresearchers,technicians,and othercreativeworkerswhogeneratetheseintangibleassets; andtheimprovementinop ...

Thesimplestintangibleassetstovaluearethosethatattachto a single product or product line and generatecash flows. Theseassetsusual ...

cashflowswewillestimatewillbeforonlythisperiodand therewillgenerallybenoterminalvalue.Second,wehaveto factorintheexpectedcostsof ...

Thevalueofthecopyrightcanbeestimatedusingthesecash flows and the cost of capital that has been supplied: The value of the copyri ...

Brandnamevalue.Thefranchisemighthaveabrand name value that enables the franchisee to charge higher prices and attract more cust ...

In essence,the valueof a franchise is directlytied to the capacitytogenerateexcessreturns.Anyactionoreventthat affects these exc ...

Burger King franchise may be diluted if another BurgerKingisallowedtoopenfivemilesdownthe highway. Final Thoughts on Franchise V ...

a company to charge higher prices for its products and generatemoreincashflows.Asaconsequence,valuingthese intangibleassetsismor ...

Brand Name Brandnameistheassetthatcomestomindmostoftenwhen thereistalkaboutintangibleassets.Afterall,brand names account for a l ...

willcollectthebrand nameexpenditures eachyear forthe past 20 years. 3.Usingastraight-lineamortizationschedule,wewriteoffa portio ...

truth, we should be going back a lot longer, but data limitations get in the way.) Weassumethat50%ofthesellingandadvertisingexpe ...

is to convert the past expenditures into current dollar expenditures, based on inflation. In other words, an expenditureof$1.12b ...

Genericoperatingmarginapproach.Inthisapproach, wereplacetheoperatingmarginofthebrand name firmwiththeoperatingmarginofgenericco ...