The Dark Side of Valuation

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If the tech-stock swoon merely whets your appetite for this roller coaster of a market sector, and your eyes don't glaze over at the very sight of formulas like "Return on Capital = EBIT (1 - t) / Capital Invested," then The Dark Side of Valuation is the investment guide you've been waiting for. Whether considering New Economy firms at their peak or their valley, writes Aswath Damodaran, the problem has always been determining their true value with equitable dispassion. A leading expert on the topic, Damodaran begins by noting that standard corporate valuations are determined by four factors: cash flow from existing investments, growth expected from this cash flow, length of time this growth is sustained, and cost of capital to sustain it. In what he admits is not always an easy read, Damodaran then details various ways to adapt conventional valuation methods for companies that lack key traditional variables (such as profits, track records, and even competitors with which they can be compared) in order to arrive at realistic valuations. Those not scared off by charts comparing the historical risk for T-bills and T-bonds since 1928 will find this book worth a look. --Howard Rothman

Download Description

It has been a brave new world for investors, since the explosion of dot.coms onto the scene. What is their worth? How do you assess them as an investor? How do you apply traditional investment analysis to valueing them and what new analysis tools do you n

Customer Reviews:

'Investment Valuation' with new title and cover.......2002-04-24

The Pros:

Damodaran is a gifted teacher and in his books is able as well to explain the concepts and techniques of valuation in an understandable manner. The book serves mainly for readers who want to get a comprehensible (and to a certain degree comprehensive) overview of the topics with selected in-depth discussions and it is quite 'readable'.

The Cons:

The book is not new at all, as about 90% is a copy of his earlier book 'Investment Valuation'. The only real difference is the selection of the examples used and the financial and market data are more current compared to his other book from 1994. It seems that the marketing department of the publisher saw an opportunity to sell a 'new' book to the new class of technology investors. However, the occasional comments of which valuation topics are specific to technology companies could be summarized on a couple of pages.
The book is good for giving a comprehensible overview but does not go very much into depth.
Effectively, it's the earlier book 'Investment Valuation' recycled with a new title and new cover, still a good book but not new at all.

The best valuation book I have read!!!.......2001-12-27

Do you need to understand the basic fundamentals of valuation? Then this is the book you need. This book will take you through step by step on how to value a company and the assumptions you need to make. By far, this book is much easier to read and understand than the book "Valuation," written by couple of Mckinsey consultants.

The best book so far on valuation from the investor's view.......2001-11-10

Although much of the organization and explanation of valuation techniques presented here repeats the presentation in Damodaran's previous books, he does two things which make this the better book than the previous books: 1) he discusses the role of "tech" companies in our economy and he selects 5 specific companies which serve as his examples in every chapter and 2) he makes reference to excel spreadsheets (available for free download on his web page) which he has prepared to allow readers to apply what they are learning immediately and with a minimum of set-up time. As tech companies play a larger and larger part in our economy, the specific quirks and issues related to the operation of tech businesses and the impact of those industry-specific issues on the valuation process become more important for us. One might argue that all companies, whether they are wine makers or processor makers, face industry-specific valuation issues which do not affect companies in other industries, and in light of that, many issues discussed here might not be relevant to the wine makers. But tech is so important to us now that we can no longer afford to use generic, non-tech specific techniques in the face of an increasingly tech-heavy stock market.

As for the reviewer who compained that Damodaran doesn't do enough work in real option theory: Damodaran says in this book exactly what needs to be said about real option theory: that it has very limited applications (which is not to say that it is not revolutionary within those limited applications) and that the push to broaden the use of real option valuation beyond its traditional applications can more often than not constitute misuse and abuse of the models. Not every investment contains options, and not all of those options have value, to paraphrase Damodaran himself. Damodaran doesn't ignore real options, of course: he calls them contingency claims (as they technically should be called) and dedicates a chapter to explaining there use and abuse. Using real options, when it comes down to it, involves building and solving partial differential equations based on stochastic processes. As any actuary or financial analyst could confirm, teaching stochastic processes presupposes a very strong math base and still would require an entire book. Damodaran did the right thing by limiting himself to a single, illustrative chapter.

The best part of this book is that thanks to Damodaran's congenial and accessible ability to write, this book can be read and prove valuable to people with a variety of needs. As an MBA student this book has been invaluable. But I even gave this book as a gift to my brother, a decidedly non-financial person, to replace his countless "How to Invest" books sitting on his bookshelf.

Strong on the valuation of old tech companies.......2001-03-18

Excellent introduction to discounted cash flow approach to valuation. Excellent examples. But very weak on real options valuation. After recognizing that real options are mostly american, the author values them like european anyway resulting in systematic undervaluation of real options. This is a shame since much of the value of new companies come from real options. If you are already familiar with DCF valuation, then you might prefer Copeland's 'Real Options' to bring yourself up to date with the latest developments in the practice of valuation.

One of the best how-to guide on valuation.......2001-03-12

This is one of the most complete books on valuation in the market. The others are Valuation from Copeland and Damodaran on Valuation.

It contains concepts and technicalities, such as CFROI, PEG or how to include management options in valuation, not found in other books -though I rather that he expanded more on this-.

The only drawbacks I find in Damodaran books are the limited attention to real-world balance sheet problems one may face (ie: effects of Minority Interests in valuation) and the no-mention policy for valuing banks. In this category, Copeland's Valuation book is better. Of course, this particular book is only meant to value tech firms !!!

If you want a really in-depth valuation book, just buy it.

Average customer rating:
The Dark Side of Valuation Valuing Old Tech, New Tech, and New Economy Companies
Aswath Damodaran
Manufacturer: NY
ProductGroup: Book
Binding: Paperback
ASIN: B000N7ICMI

Book Description

Explains and analyzes the most innovative financial deals of the past year. Selected by a panel of industry experts, the innovations described in this breakthrough book reflect the best work of Wall Streets much heralded rocket scientists. Each innovation is analyzed in detail, from a theoretical point of view as well as from an applied, real-world perspective. Covering virtually every aspect of the capital markets, this book provides financial professionals with the cutting-edge information they need to stay on top of their fields. Some of the deals highlighted include: Creative uses of FLEX options; Using structured notes to increase returns; Reengineering returns with option-based strategies; New applications for currency forwards; Reengineering cash flows through mortgage derivatives.

Book Description

A unique blend of traditional and contemporary styles, Milady's 28 Styles features both long-haired and short styles, to give cosmetologists experience in cutting, setting, comb-out and blow-dry techniques.

Customer Reviews:

Not for beginners!.......2004-03-23

This book is for someone who has training in cosmetology. Very disappointing and confusing for someone who is new to cutting hair and wanted step by step instruction that the other reviewers talked about. What you see in the example cut (the page shown here on the web when it says look in this book) is all the insturction that you get for each of the cuts in this book.

Dissapointed!.......2003-09-06

This book does not provide you with step-by-step instructions
for the majority of the cuts, and I would not recommend it for a beginner student. I also expected a larger variety of hair styles.

Great for beginners.......2001-01-18

I thought this was a great guide for beginners such as myself. the book offers many different tips on how to cut short hair, long hair, kinky hair, curly hair, and uneven hair. It also offers great tips on different sytles. I found this book to be a good source of information for beginners.

Good information for beginners, like me........2001-01-12

My friend and I have started cutting hair on our spare time, to make a little extra money. This great book was very informative and it contained many easy to follow step by step instructions. Not only does it offer basic cutting tips, but it offers great styling tips as well. Yes, it's for beginners, but we found it helpful and we're applying what we learned from this book on a daily basis, in our new part-time job as stylists. If you already know how to cut hair, then you'll probaly have no use for this book, but if your a rookie, you'll really find it helpful.

Good instructional book.......2000-11-18

I thought this book was well written and provided good step by step instruciton to anyone who is new to cutting hair. It shows you how to properly cut different hair types and in different styles. I found it to be useful.

Book Description

Recorded history is a finely-woven magic fabric of intricate lies about events predating the sixteenth century. There is not a single piece of evidence that can be reliably and independently traced back earlier than the eleventh century. This book details events that are substantiated by hard facts and logic, and validated by new astronomical research and statistical analysis of ancient sources.

Customer Reviews:

Calculations are only as good as your numbers.......2007-08-03

Yes, we can all agree that mainstream history is nearly 100% BS due to politics, economics, ego, problems with dating techniques, and various conspiracies. Agreed. But, I've been researching the distinct possibility that human history (in terms of civilizations) are much more ancient than we've been told, so coming across this book was very interesting to me. I wondered how Fomenko could be wrong (if at all) because he is very persuasive in his presentations. Then it dawned on me. If at previous times in prehistory, due to the various catastrophies that are well documented (comets, asteroids, planetary disruptions, plasma discharge, pole reversals, etc) the Earth was in a different position in relation to the sun, different tilt on its axis, different orbit, different rotation (in terms of velocity and DIRECTION), and the continents were in different positions, then would this not cause the ancients to see the sky (constellations) differently? In other words, is Fomenko making erronious assumptions about the physics of the Earth in pre-history, which then corrupt his data with regards to dating the relevant astrology? The last event to seriously disrupt our planet occured roughly 3500 years ago, according to other good researchers, so is it possible Fomenko has been confused by this? The vastly different physics of our planet in the not so distant past may explain this confusion, which is not to say the "mainstream" version of history is correct; on the contrary. I am not an expert in these fields, but wanted to see if this idea could spark discussion.

Pants on fire?.......2007-07-19

Will people ever read before spamming? Yes, Jesuits could not rewrite world history alone, they had help. Anyway, Dr Prof Acad A.Fomenko does not point to jesuits as the driving force of world wide history manipulation in published volumes 1,2,3;, actually he barely mentions the poor devils. Check it with 'Search inside' feature, please. China is rarely mentioned either, in fact, Dr Fomenko is completely eurocentric. Right, his theory contradicts all mainstream schools of history, because in their actual state they are all built on blatantly erroneus chronology. You don't need a mysterious cabal (conspiracy) to falsify history, the falsification is its modus operandi. It is inherent to history(ians) to falsify (distort) events, as it is inherent to humans to boast as it is inherent to power (authority) to legimize itself by referrring to glorious past made to its own order. Dr Prof Fomenko and team have identified scores of instances of such manipulation in Russian, European, etc.. history, and delivered valid statistical proof thereof. His own 'reconstruction' is completely another story. Forget c14 as a valid method of dating. W.Libby has initially discovered a brilliant method of INDEPENDENT dating. Too bad, c14 method has become a joke after a forced marrige with dendrochronology with consensual chronological scale inbuilt. Radiocarbon method can't stand blind tests, but is so very productive as a rubberstamp.

Accepted History & Chronology Must Be Changed. .......2007-04-09

There is no doubt that history as most know it is a sham, & institution's version of History both University & Church is fradulent & inaccurate. Everything was established with an agenda, The real "Dark Ages" are now when we have access to incredible amounts of information past authorities & more important 'common folk' didn't have but our institutions & educators are slow to evolve because of what has ignorantly & arrogantly been taught for too long. This is on many subjects not just Chronology.

For anyone to question "Why would a Mathematician have anything credible to say of History?" The answer is from Dr. Fomenko's preface in the book: "It would be worthwhile to remind the reader that in the XVI-XVII century Chronology was considered to be a subdivision of Mathematics." These volumes could possibly be some of the most important works to date & should be read by everyone with an interest in History, especially professors & educators who have a duty to the public. I have read both books & must say that 'Chronology 1' has some very eye opening & revolutionary information. Even if these volumes are part true the implications are profound & opens the doors to further investigations & questions which must be done. I speak several different lanquages & must say the logic Dr. Fomenko uses with "inflection" of words & words being read from left to right in one region & right to left in another then written backwards, the removal of vowels & get down to basics of words, or different cities & locations having the same name etc. is correct. Vowel usage has always been optional & varied, actually complicating linquistics & study. The first thing one has to understand is that words never had a fixed spelling in history like we do now, the spelling of words was mutable & regional, as well as names & titles of people were vast, varied & changed, NOTHING WAS FIXED or understood linear. Matters of Life & Death as well as financial profiteering yesterday & today were & are made with ignorant, illogical & conspiratorial views of history & reality, it's time people get closer to the Truth & society collectively grow up.

Very Interesting.......2007-03-07

It is a good proposal and I believe it will mature into something even better in the future. I think it deserves to be read.

History as Science Fiction.......2007-01-10

Anatoly Fomenko has written a very intriguing book, full of pictures, charts, and computer 'proof' of his thesis: backwards of AD900 we don't really know what happened or when. Between AD900 and AD1600 there is more certainty, but there is still a lot of fuzzy ground, and things don't get reliable until we get past the 1600's where the printing press made it very difficult for the perpetrators of this timeline manipulation to change anything that had been committed to print. The Dark Ages did not happen. Books were burned for a reason. One organization has doubled the actual length of its existence by expanding the real chronology. Read why.

I had always wondered why Christ died about AD33 and yet men waited until the 11th century to form the Knights Templar, the Cathars, etc and go after the Holy Land by force. Why the 1000 year gap? Turns out there wasn't more than a 10-12 year gap and he proves it using astronomy. This also implies that the planet is not as old as we have been told, and current Christian and other creationist scientists are already championing that idea without being aware of Fomenko's book. The two groups, creationist scientists and the Russian mathematical analysts corroborate each other. Fascinating.

Of course, all this flies in the face of what we have been told traditionally is the 'proper' chronology of western civilization, and most readers will experience 'cognitive dissonance' in reading this book. It means that our history going backwards from AD1600 becomes progressively more incorrect and unreliable until it cannot be trusted at all... in the space of 700-800 years.

Naturally, the curious, open-minded reader will want to know WHO did this, WHY, and did any of the events we think of as really ancient ever happen?
Dr. Fomenko is a respected scientist/mathematician at Moscow State University who has already answered these questions to the satisfaction of his initially skeptical colleagues. Most of them are now believers, a few still refuse to believe (the usual diehards), and of course the western press has ignored Fomenko's work -- for obvious reasons when you read the book. The ones who perpetrated this chronology ruse have a lot to answer for. They are still with us. That's why this book is a well-kept secret.

I gave the book a 4-star rating because I was unable to check out some of his claims; those I checked were as he said. But if even 1/3 of his claims are true, this punches a big hole in what we think is our history, the meaning of western civilization, our educational process (for repeating the ruse as gospel), and the trustworthiness of the organization that perpetrated this ruse, well-intentioned or not.

This book relates to current research into a Young Earth paradigm, to John Keel's discoveries about our planet, and Fr Malachi Martin's insights (in his now out-of-print books). We are indeed sheep who are manipulated and kept ignorant -- for a reason. While knowing what these men have to say may be the "booby prize" (as in: 'what can you do with this knowledge?'), it will provide interesting reading. Didn't someone say: "...and the Truth will set you free."?? For you to judge if this book contains the truth.

Progress in scientific dating methods (Occasional paper)

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Progress in scientific dating methods (Occasional paper)

Manufacturer: British Museum
ProductGroup: Book
Binding: Paperback

General | Ancient | History | Subjects | Books

Scientific Dating Methods (Eurocourses: Advanced Scientific Techniques)

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Scientific Dating Methods (Eurocourses: Advanced Scientific Techniques)

Manufacturer: Springer
ProductGroup: Book
Binding: Hardcover

General | Ancient | History | Subjects | Books

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ASIN: 0792314611

Book Description

Heat transfer is the exchange of heat energy between a system and its surrounding environment, which results from a temperature difference and takes place by means of a process of thermal conduction, mechanical convection, or electromagnetic radiation.

Advances in Heat Transfer is designed to fill the information gap between regularly scheduled journals and university-level textbooks by providing in-depth review articles over a broader scope than is allowable in either journals or texts.

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Advances in Heat Transfer, Volume 35 (Advances in Heat Transfer)
James P. Hartnett
Manufacturer: NY
ProductGroup: Book
Binding: Hardcover
ASIN: B000MUDRJE

Book Description

Phil and Frank are best friends and med students who work part-time at Ron Todd's World of Chickens as a package deal. Phil's out in front doing shifts in the chicken suit, and Frank's in back frying burgers. They are the A Team, and the World is a sanc-tuary from the pressures of home and college, and a place to scheme about meeting women. Someday Frank hopes to be a surgeon, while Phil's secret dream is to be a filmmaker. In the meantime, life at the World gets sticky when Phil falls big time for Ron's daughter, Frank has it bad for Ron's wife, and business is down. Suddenly, Phil becomes a reluctant and altogether unexpected oracle on dental health, strategic plan-ning, and marriage guidance.

Customer Reviews:

FUNNY!.......2004-06-26

There are a few parts of this book that get weighed down with excess words. But this book will crack you up. It's a series of misunderstandings, crossed signals, oddball characters and general goofiness. Very funny.

Go Down, Moses. A Concordance to the Novel. TWO VOLUME SET (The Faulkner Concordances, 2)

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Go Down, Moses. A Concordance to the Novel. TWO VOLUME SET (The Faulkner Concordances, 2)
Jack L. Capps (editor) , and Michael Millgate (introduction)
Manufacturer: The Faulkner Concordance
ProductGroup: Book
Binding: Hardcover
ASIN: B000RGP3CC

The Season of Letting Go ( a Short Novel & Two Long Stories )

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The Season of Letting Go ( a Short Novel & Two Long Stories )
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Manufacturer: Claritas Imprints
ProductGroup: Book
Binding: Paperback
ASIN: B000NVRQCG

Two Lively New Novels: Hip Chick and Darers Go First

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Two Lively New Novels: Hip Chick and Darers Go First

Manufacturer: Tower Publications
ProductGroup: Book
Binding: Mass Market Paperback
ASIN: B000HYUMQ6

Two maids go to market: A novel of the theatre

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Two maids go to market: A novel of the theatre
Laurence Schwab
Manufacturer: Covici
ProductGroup: Book
Binding: Unknown Binding

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