Damodaran on Valuation_ Security Analysis for Investment and Corporate Finance ( PDFDrive )
Source:Koeplin, Sarin, and Shapiro (2000). Note that,with the exceptionofbook value multiples,the privatecompanieswereacquiredat ...
There is a large enough number of transactions involving these private businesses (assets), and information on transactions pri ...
andearnings.Notwithstandingtheselimitations,youdosee relative valuation widely used in some areas of private business valuations ...
fundamentalsofthefirms(includingsize,growth,risk,anda measureofilliquidity).Theresultingregressioncanthenbe used to estimate the ...
RegressingEV/sales ratiosforthesefirmsagainstoperating margins and turnover ratios yields the following: (T-statistics are in br ...
KristinKandyhasapretaxoperatingmarginof25%,azero turnoverratio(toreflectitsstatusasaprivatecompany),and a beta(total) of2.94.Thi ...
Thequestion of whethera growing and successful private companyshouldgopublicdoesinvolvetrade-offs.Itistrue that publiclytraded f ...
sectors.Theempiricalevidenceissupportiveofthis hypothesis. Whataboutpubliclytradedcompaniesthatgoprivate,asis oftenthecasewithma ...
turnoverandanemphasisonrisky,smallmarketcapstocksto underperform the market. 80 Extending this analysis to venture capital and p ...
capital.Thesecondiscenteredontheliquidityoftheassets owned by a firm. Theliquidityorlackthereofofthesecuritiesissuedbyafirm canh ...
Finally,theliquidityorlackthereofofsecuritiescan have consequences for how management at companiesgets compensated.Inrecent yea ...
definethesecostsbroadlytoincludethebid-askspreadanda priceimpact.Wethenlookedattheempirical evidenceon howmuchmarketsvalueliquid ...
its assets can affect investment, financing, and dividend policy.Ingeneral,firmswithlessliquidassetsandsecurities willtendtobemo ...
7 M.K. Dey and B. Radhakrishna,“Institutional Trading, Trading Volume and Spread,” working paper, 2001. They provideevidenceofth ...
thatcollusionamongdealersstillleadstohigherspreadson the NASDAQ. 14 L.Y.Dann,D.Mayers,andR.J.Rabb,“TradingRules, LargeBlocksandt ...
20 D. Vayanos, “Transactions Costs and Asset Prices: A Dynamic Equilibrium Model,” Journal of Financial Economics11 (1998): 1–58 ...
27 V. R. Eleswarapu, “Cost of Transacting and Expected Returns in theNasdaq Market,”Journal ofFinance 52 (5) (1997):2113–2127.Th ...
33 F.A.Longstaff,“How MuchCan Marketability Affect Security Values?”Journal of Finance50 (1995): 1767–1774. 34 Y.Amihud andH.Men ...
premiums.Thepremiumsduringthe1990saveragedabout 3 percent,whereastheyweremorethan 5 percentpriorto1960. C. M. Jones, “A Century ...
49 B. A.Johnson, “QuantitativeSupport forDiscounts for Lack of Marketability,” Business Valuation Review 16 (1999): 152–155. 50 ...
«
114
115
116
117
118
119
120
121
122
123
»
Free download pdf