The Dark Side Of Valuation Valuing Old Tech, New Tech, And New Economy Companies – Aswath Damodaran

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Technology

Summary

• Archive: (Pearson Education) A comprehensive guide to valuing technology companies, for investors, financial executives, venture capitalist, and other professionals.

• Includes 5 detailed case studies that cover the entire tech lifecycle, from Amazon.com to Cisco and Motorola.

• DLC: Valuation.Amazon.com ReviewIf 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.

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