Valuation Techniques – Discounted Cash Flow, Earnings Quality, Measures of Value Added and Real Options (CFA Investment Perspectives Series)

<p>Foreword ix</p>
<p>Introduction 1</p>
<p>PART I: VALUATION PERSPECTIVES: THEN AND NOW 3</p>
<p>CHAPTER 1 Two Illustrative Approaches to Formula Valuations of Common Stocks 5<br /> Benjamin Graham</p>
<p>Reprinted from the Financial Analysts Journal (November 1957):1115.</p>
<p>CHAPTER 2 Seeking a Margin of Safety and Valuation 17<br /> Matthew B. McLennan, CFA</p>
<p>Reprinted from CFA Institute Conference Proceedings Quarterly (June 2011): 2734.</p>
<p>PART II: VALUATION METHODOLOGIES 29</p>
<p>CHAPTER 3 Company Performance and Measures of Value Added 31<br /> Pamela P. Peterson, CFA, and David R. Peterson</p>
<p>Reprinted from the Research Foundation of CFA Institute (December 1996).</p>
<p>CHAPTER 4 The Affordable Dividend Approach to Equity Valuation 93<br /> Alfred Rappaport</p>
<p>Reprinted from the Financial Analysts Journal (July/August 1986):5258.</p>
<p>CHAPTER 5 Discounted–Cash–Flow Approach to Valuation 105<br /> Gregory A. Gilbert, CFA</p>
<p>Reprinted from ICFA Continuing Education Series (1990):2330.</p>
<p>CHAPTER 6 Equity Securities Analysis Case Study: Merck &amp; Company 115<br /> Randall S. Billingsley, CFA</p>
<p>Reprinted from AIMR Conference Proceedings: Equity Securities Analysis and Evaluation (December 1993):6395.</p>
<p>CHAPTER 7 Traditional Equity Valuation Methods 155<br /> Thomas A. Martin, Jr., CFA</p>
<p>Reprinted from AIMR Conference Proceedings (May 1998):2135.</p>
<p>CHAPTER 8 A Simple Valuation Model and Growth Expectations 177<br /> Morris G. Danielson</p>
<p>Reprinted from the Financial Analysts Journal (May/June 1998):5057.</p>
<p>CHAPTER 9 Franchise Valuation under Q–Type Competition 189<br /> Martin L. Leibowitz</p>
<p>Reprinted from the Financial Analysts Journal (November/December 1998): 6274.</p>
<p>CHAPTER 10 Value Enhancement and Cash–Driven Valuation Models 209<br /> Aswath Damodaran</p>
<p>Reprinted from AIMR Conference Proceedings: Practical Issues in Equity Analysis (February 2000):417.</p>
<p>CHAPTER 11 FEVA: A Financial and Economic Approach to Valuation 229<br /> Xavier Adsera` and Pere Vin olas</p>
<p>Reprinted from the Financial Analysts Journal (March/April 2003):8087.</p>
<p>CHAPTER 12 Choosing the Right Valuation Approach 243<br /> Charles M.C. Lee</p>
<p>Reprinted from AIMR Conference Proceedings: Equity Valuation in a Global Context (April 2003):414.</p>
<p>CHAPTER 13 Choosing the Right Valuation Approach 259<br /> Robert Parrino, CFA</p>
<p>Reprinted from CFA Institute Conference Proceedings: Analyzing, Researching, and Valuing Equity Investments (June 2005):1528.</p>
<p>CHAPTER 14 Valuing Illiquid Common Stock 279<br /> Edward A. Dyl and George J. Jiang</p>
<p>Reprinted from the Financial Analysts Journal (July/August 2008):4047.</p>
<p>PART III: EARNINGS AND CASH FLOW ANALYSIS 291</p>
<p>CHAPTER 15 Earnings: Measurement, Disclosure, and the Impact on Equity Valuation 293<br /> D. Eric Hirst and Patrick E. Hopkins</p>
<p>Reprinted from the Research Foundation of CFA Institute (August 2000).</p>
<p>CHAPTER 16 Cash Flow Analysis and Equity Valuation 349<br /> James A. Ohlson</p>
<p>Reprinted from AIMR Conference Proceedings: Equity Research and Valuation Techniques (May 1998):3643.</p>
<p>CHAPTER 17 Accounting Valuation: Is Earnings Quality an Issue? 361<br /> Bradford Cornell and Wayne R. Landsman</p>
<p>Reprinted from the Financial Analysts Journal (November/December 2003): 2028.</p>
<p>CHAPTER 18 Earnings Quality Analysis and Equity Valuation 375<br /> Richard G. Sloan</p>
<p>Reprinted from CFA Institute Conference Proceedings Quarterly (September 2006): 5260.</p>
<p>CHAPTER 19 Is Cash Flow King in Valuations? 389<br /> Jing Liu, Doron Nissim, and Jacob Thomas</p>
<p>Reprinted from the Financial Analysts Journal (March/April 2007):5668.</p>
<p>PART IV: OPTION VALUATION 407</p>
<p>CHAPTER 20 Employee Stock Options and Equity Valuation 409<br /> Mark Lang</p>
<p>Reprinted from the Research Foundation of CFA Institute (July 2004).</p>
<p>CHAPTER 21 Employee Stock Option Valuation with an Early Exercise Boundary 465<br /> Neil Brisley and Chris K. Anderson</p>
<p>Reprinted from the Financial Analysts Journal (September/October 2008): 88100.</p>
<p>PART V: REAL OPTIONS VALUATION 483</p>
<p>CHAPTER 22 Real Options and Investment Valuation 485<br /> Don M. Chance, CFA, and Pamela P. Peterson, CFA</p>
<p>Reprinted from the Research Foundation of CFA Institute (July 2002).</p>
<p>CHAPTER 23 Real–Options Valuation for a Biotechnology Company 573<br /> David Kellogg and John M. Charnes</p>
<p>Reprinted from the Financial Analysts Journal (May/June 2000):7684.</p>
<p>About the Contributors 587</p>
<p>Index 589</p>