Includes references and index.

Contents: Introduction to Valuation-- Approaches to Valuation-- Understanding Financial Statements-- The Basics of Risk-- Option Pricing Theory and Models-- Market Efficiency—Definition, Tests, and Evidence-- Riskless Rates and Risk Premiums-- Estimating Risk Parameters and Costs of Financing-- Measuring Earnings-- From Earnings to Cash Flows-- Estimating Growth-- Closure in Valuation: Estimating Terminal Value-- Dividend Discount Models-- Free Cash Flow to Equity Discount Model-- Firm Valuation: Cost of Capital and Adjusted Present Value Approaches-- Estimating Equity Value per Share-- Fundamental Principles of Relative Valuation-- Earnings Multiples-- Book Value Multiples-- Revenue Multiples and Sector-Specific Multiples-- Valuing Financial Service Firms-- Valuing Firms with Negative or Abnormal Earnings-- Valuing Young or Start-Up Firms-- Valuing Private Firms-- Aquisitions and Takeovers-- Valuing Real Estate-- Valuing Other Assets-- The Option to Delay and Valuation Implications-- The Options to Expand and to Abandon: Valuation Implications-- Valuing Equity in Distressed Firms-- Value Enhancement: A Discounted Cash Flow Valuation Framework-- Value Enhancement: Economic Value Added, Cash Flow Return on Investment,
and Other Tools-- Probabilistic Approaches in Valuation: Scenario Analysis, Decision Trees, and Simulations