Damodaran on Valuation_ Security Analysis for Investment and Corporate Finance ( PDFDrive )
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 ...
Toprovideacontrast,thenetpresentvalueofthisprojectis only $547 million. Thetime premiumof$360 milliononthis option($907 − $547)s ...
Basedonthisanalysis,ifnothingchanges,wewouldexpect Avonextobeworthmoreasacommercialproductthanasa patent nineyears fromnow,which ...
Theexpectedvalueof any patentsthat thefirmcanbe expectedtogenerateinfutureperiodsfromnewpatentsthatit might obtain as a result ...
separately and allows for the option component of value explicitly. Thebiggest limitationof the option-basedapproach is the info ...
thevalueofanundevelopedreserveandthenconsiderhow wecanextendthistolookatnaturalresourcecompaniesthat have both developed and und ...
Thus,theinvestmentinanaturalresourceoptionhasapayoff function similar to a call option. Inputs for Valuing a Natural Resource Op ...
capacityoutputrate,aswellasestimatesofthenumberof years itwouldtake toexhaust theinventory.Thus,a gold minewithareserveof 3 mill ...
thelossofcashflowsduringthedevelopmentperiod.Thus,if thereisaone-yearlagindevelopmentandwecanestimate thecashflowwewouldmakeover ...
Riskless rate = 8% Basedontheseinputs,theBlack-Scholesmodelprovidesthe following values. Thisoilreserve,thoughnotviableatcurrent ...
option. A purist would probably disagree, arguing that valuinganoptiononaportfolioofassets(asinthisapproach) willprovidealowerva ...
ofitsundevelopedreserves.Again,thecostsmightbe higherforsomereservesthanforothers,andwecan use a weighted average cost. Life of ...
barrels of oil and the average cost of developing these reservesatthattimewasestimatedtobe$30.38billion(the development lagisapp ...
Thisstandsincontrasttothediscountedcashflowvalueof $12billionthatweobtainbytakingthedifferencebetween thepresentvalueofthecashfl ...
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