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

differentlevels forthebrand nameandthegeneric company. Alegitimateargument canbe made that brand name companies have less market ...

tobrandname,thevalueofthebrandnamecanbecomputed asthedifferencebetweentheestimatedvalueofthefirmand the book value of capital in ...

Coca-Cola Cott Return on capital (after-tax) 20.84% 11.20% Thebenefits of brand name areclearlyvisible. Coca-Cola generatesmorer ...

Value of Coca-Cola With Current Margin With Cott’s Margin Return on capital (after-tax) 20.84% 7.06% Growthrateduring period (g) ...

WenextvalueCoca-Cola’sbrandnameusingthereturnon capital approach, changing Coke’s return on capital of 20.84%toCott’sreturnoncap ...

ReplacingCoca-Cola’sreturnoncapitalwithCott’sreturnon capitalchangesthecurrentoperating income, growthrates, and value, and the ...

Value of Coca-Cola With Current Excess Return With Cott’s Excess Return Return on capital (after-tax) 20.84% 11.20% Growth rate ...

constantatCoca-Cola’scurrentlevelof$16,406million.The following table summarizes the values: Value of Coca-Cola With Current Exc ...

Reviewingourcalculations,thehighestestimatethatweget for brand name value comes from the operating margin approach($64billion)an ...

company. The brand name value can be backed out as follows: Thus, if weare usingEV/sales ratiosas ourmultiples for comparison, t ...

Wecouldintroducea brand namedummyvariable intotheregressionandcaptureitseffectonvalue.For instance, using EV/Sales ratio as them ...

In this example, we first compare Coca-Cola’s market valuationtothatofCottCorporationinthefollowingtable (dollar amounts in mill ...

Thevaluesrangewidely,dependingonthemetricused,with the highest value, at least in this case, generated by the revenue measure an ...

a stableof brand names(Procter& Gamble,Kraft Foods).Whenweapplytheapproachesdescribedin the preceding section, we are obtain ...

Attachingavaluetobrandnamemaymakeaccountantsfeel betterabouttheirmeasurementsofasset value,butitoften provides little informatio ...

consultants havespecial qualities; thedifference is relative. Excess returnmodels. We can attribute all of the excessreturnsear ...

The most charitable interpretation of goodwill is that it measurestheestimatedvalueofgrowthassetsin thetarget company; growth as ...

Themost difficultintangible assetsto value arethose that havethepotentialtocreatecashflowsinthefuturebutdonot producethemrightno ...

developing the patent and V is the present value of the expected cash flows from development, then: FIGURE 12.1Payoff to Introdu ...

The initial cost of developing the drug for commercialuseisestimatedtobe$2.875billion,if the drug is introduced today. Thefirmh ...