Damodaran on Valuation_ Security Analysis for Investment and Corporate Finance ( PDFDrive )
abnormallyhighorlow—a firm’searningsareabnormalif they do not fit in with the firm’s own history of earnings. Whenearningsareneg ...
Firms with long-term operating, strategic, or financial problems can have extended periods of negative or low earnings. If we r ...
Growth Patterns Ingeneral,whenvaluingafirm,wecan(1)assumethatthe firm is already in stable growth, (2) assume a period of consta ...
discountedcashflowmodelshouldprovideenoughflexibility intermsofcapturingchangesintheunderlyingcharacteristics ofthefirm.Athree-s ...
Competence of the firm’s management. More competentmanagementwillbeabletoslow,though notstop,thelossofcompetitiveadvantageovert ...
InChapter 13 onvaluingcontrol,wenotedthatthevalueofa firm can be substantially higher if we assume that it is optimallyrunthanif ...
Manyanalystschoosetovalueassetsusingrelativevaluation models.Inmakingthischoice,twobasicquestionshavetobe answered:Whichmultiple ...
Youshouldplayan activeroleindeciding which multiple shouldbeusedtovalueacompanyandwhatfirms willbe viewedascomparablefirms.Secon ...
by using theone multiple thatis best suited forthe firm. There are three ways in which we can find this multiple. 1.Thefundament ...
Cyclical manufacturing P/E, relative P/E Often with normalized earnings. High tech, high growth P/E to growth (PEG) Big differen ...
multipleusedinthesector.Infact,whenthemultipleinuse conventionally does not reflect fundamentals, which can happenifthesectorisi ...
narrowly focused on your sector and make judgments on whichstocksareunder-orovervalued,youshouldstickwith sector-basedrelativeva ...
As aninvestor,wecanuse bothdiscountedcash flowand relativevaluationtovalueacompany.Optimally,wewould like to buy companies that ...
firm in question—this can come from legal restrictions on competition or a significant competitive edge. Donotdoublecountoption ...
modelsmorefeasible,thereismuchto besaid infavor of simpler models that require fewer inputs. 3.Respectthebasiclawsofeconomics.Th ...
everyfirmthatisvalued,butitwillbeimpossibletoseparate howmuchoftheresultcanbeattributedtoviewsaboutthe firm and how much to macr ...
absolute rules, and it goes without saying that blindly following a model orequation willalmost always lead to disaster.Acombina ...
Index Abandonment option Accelerated depreciation Accountability Accountants, functions of Accounting,seeAccounting practices/st ...
Accounts receivable Accretive merger Acquiring firms,seeAcquisition(s); Mergers; Synergy valuation Acquisition(s): characteristi ...
Active investments Active investors Activist investors Activity variables Actual returns Adjusted present value (APV) Adobe Syst ...
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