Valuation

Here is a valuation book that avoids highly theoretical or "ivory-tower" concepts that do not lead directly to practical results and tools. George Chacko focuses on techniques and methodologies that lead directly to accurate valuations, and explains each key concept with up-to-date examples. By avoiding elementary content that financial managers, analysts, and MBA-level finance students already know, this book can focus more tightly on the realistic techniques and advanced issues practitioners are actually concerned with. One step at a time, Chacko develops a practical, rigorous approach to conducting valuation, addressing the projection of financial statements, calculating free cash flows, risk-adjusted cost of capital, and leading methodologies including WACC, flow-to-equity, and Adjusted Present Value (APV). Coverage includes:

• Market value and accounting balance sheets, cash cycles, the DuPont formula, financial distress, and capital as a risk buffer
• Constructing pro-formas, projecting and bridging financing shortfalls, and planning sustainable growth
• Sources/uses of cash, cash income statements, pro-forma balance sheet changes, working capital, depreciation, and capital expenditures
• Risk-free cost, investment risks, diversifiable vs. idiosyncratic risks, and more
• NPV, APV, Optimal Debt Ratio, Capital Structure Dynamics, and Terminal Value Calculations

List of contents

Preface    x
Chapter 1 Introduction   1
Chapter 2 Financial Statement Analysis   15
Chapter 3 Financial Forecasting   45
Chapter 4 Free Cash Flows   69
Chapter 5 Cost of Capital   91
Chapter 6 Putting It All Together: Valuation Frameworks   127
Index   157

About the author

George Chacko is Associate Professor of Finance at Santa Clara University’s Leavey School of Business and Founding Partner of HNC Advisors AG. He was formerly Associate Professor at Harvard Business School, Managing Director at State Street Bank, and Chief Investment Officer at Auda Alternative Investments. He holds a Ph.D. and M.A. in Business Economics from Harvard University and a B.S. from MIT.

Carolyn L. Evans is Senior Assistant Dean at the Leavey School of Business at Santa Clara University. She has worked at Intel Corporation, the Federal Reserve Bank of New York, the Federal Reserve Board of Governors, and the White House Council of Economic Advisers. She holds a Ph.D. and M.A. in Economics and a B.A. in East Asian Languages and Civilizations, all from Harvard University.

Summary

Here is a valuation book that avoids highly theoretical or "ivory-tower" concepts that do not lead directly to practical results and tools. George Chacko focuses on techniques and methodologies that lead directly to accurate valuations, and explains each key concept with up-to-date examples. By avoiding elementary content that financial managers, analysts, and MBA-level finance students already know, this book can focus more tightly on the realistic techniques and advanced issues practitioners are actually concerned with. One step at a time, Chacko develops a practical, rigorous approach to conducting valuation, addressing the projection of financial statements, calculating free cash flows, risk-adjusted cost of capital, and leading methodologies including WACC, flow-to-equity, and Adjusted Present Value (APV). Coverage includes:

• Market value and accounting balance sheets, cash cycles, the DuPont formula, financial distress, and capital as a risk buffer
• Constructing pro-formas, projecting and bridging financing shortfalls, and planning sustainable growth
• Sources/uses of cash, cash income statements, pro-forma balance sheet changes, working capital, depreciation, and capital expenditures
• Risk-free cost, investment risks, diversifiable vs. idiosyncratic risks, and more
• NPV, APV, Optimal Debt Ratio, Capital Structure Dynamics, and Terminal Value Calculations

Product details

• Authors: George Chacko, Carolyn Evans, Carolyn L. Evans
• Publisher: Pearson Academic
• Languages: English
• Product format: Hardback
• Released: 31.03.2015
• EAN: 9780132905220
• ISBN: 978-0-13-290522-0
• No. of pages: 300
• Weight: 380 g
• Series: Financial Times; Financial Times
• Subject: Social sciences, law, business > Business > Business administration