{"product_id":"corporate-valuation-for-portfolio-investment-isbn-9781576603178","title":"Corporate Valuation for Portfolio Investment","description":"A detailed guide to the discipline of corporate valuation  \u003cp\u003eDesigned for the professional investor who is building an investment portfolio that includes equity, \u003ci\u003eCorporate Valuation for Portfolio Investment\u003c\/i\u003e takes you through a range of approaches, including those primarily based on assets, earnings, cash flow, and securities prices, as well as hybrid techniques.\u003c\/p\u003e \u003cp\u003eAlong the way, it discusses the importance of qualitative measures such as governance, which go well beyond generally accepted accounting principles and international financial reporting standards, and addresses a variety of special situations in the life cycle of businesses, including initial public offerings and bankruptcies. Engaging and informative, \u003ci\u003eCorporate Valuation for Portfolio Investment\u003c\/i\u003e also contains formulas, checklists, and models that the authors, or other experts, have found useful in making equity investments.\u003c\/p\u003e \u003cul\u003e \u003cli\u003ePresents more than a dozen hybrid approaches to valuation, explaining their relevance to different types of investors\u003c\/li\u003e \u003cli\u003eCharts stock market trends, both verbally and visually, enabling investors to think like traders when needed\u003c\/li\u003e \u003cli\u003eOffers valuation guidance based on less quantitative factors, namely management quality and factors relating to the company and the economy\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003e\u003ci\u003eCorporate Valuation for Portfolio Investment\u003c\/i\u003e puts this dynamic discipline in perspective and presents proven ways to determine the value of corporate equity securities for the purpose of portfolio investment.\u003c\/p\u003e \u003cp\u003eForeword by Dean LeBaron xiii\u003c\/p\u003e \u003cp\u003ePreface xvii\u003c\/p\u003e \u003cp\u003eAcknowledgments xix\u003c\/p\u003e \u003cp\u003e\u003cb\u003e1 Corporate Valuation for Portfolio Investment: A Philosophical Framework 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eValuation Defined 2\u003c\/p\u003e \u003cp\u003eThe Importance of Equity 4\u003c\/p\u003e \u003cp\u003eEquity Defined 4\u003c\/p\u003e \u003cp\u003eArticles of Faith Undermined: Securitization at Risk 5\u003c\/p\u003e \u003cp\u003eBenefits of the Equity Marketplace 8\u003c\/p\u003e \u003cp\u003eThe Flexible Nature of Equity Capital 8\u003c\/p\u003e \u003cp\u003eLong-Term Superiority of Equity over Debt—with a Caution about Volatility 9\u003c\/p\u003e \u003cp\u003eThe Focused Nature of Valuation for Investment 11\u003c\/p\u003e \u003cp\u003eTwo Main Sources of Information about Equity 12\u003c\/p\u003e \u003cp\u003eFinancial Reports: Issues with GAAP and IFRS\/IAS 12\u003c\/p\u003e \u003cp\u003eSources of Complexity in Accounting for Company Value 13\u003c\/p\u003e \u003cp\u003eReforming GAAP and IFRS 15\u003c\/p\u003e \u003cp\u003eThe Problem of Fair Market Value: Reporting Values for Securities with No Current Market 17\u003c\/p\u003e \u003cp\u003eThree Studies 18\u003c\/p\u003e \u003cp\u003eThe Need to Read between the Lines 19\u003c\/p\u003e \u003cp\u003eHuman Nature Complicates (but Also Informs) Equity Valuation 19\u003c\/p\u003e \u003cp\u003eGeorge Soros’s Concept of Reflexivity 21\u003c\/p\u003e \u003cp\u003eOther Paradoxes in Equity Investing 22\u003c\/p\u003e \u003cp\u003eThe Observer Effect 24\u003c\/p\u003e \u003cp\u003eHuman Nature as the Key to Equity Value 24\u003c\/p\u003e \u003cp\u003eNeed for Expression in Currency Values 25\u003c\/p\u003e \u003cp\u003eOn Financial Mathematics 26\u003c\/p\u003e \u003cp\u003eIn Closing: About This Book 28\u003c\/p\u003e \u003cp\u003eA Range of Approaches 30\u003c\/p\u003e \u003cp\u003e\u003cb\u003e2 Valuation Based on Assets 47\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eOverview of Assets as a Unit of Valuation 48\u003c\/p\u003e \u003cp\u003eAn Opening Caveat: The Limitations of Accounting Numbers 51\u003c\/p\u003e \u003cp\u003eAccounting Numbers: Why Assets as a Starting Point? 52\u003c\/p\u003e \u003cp\u003eDefinition of an Asset 53\u003c\/p\u003e \u003cp\u003eFlow-Dominant vs. Value-Dominant Assets 55\u003c\/p\u003e \u003cp\u003eThe Market Premium and Nonmarket Discount 56\u003c\/p\u003e \u003cp\u003eBear Stearns: A Cautionary Tale 58\u003c\/p\u003e \u003cp\u003eThe Asset-Focused Investor 59\u003c\/p\u003e \u003cp\u003eCurrent Asset Value 60\u003c\/p\u003e \u003cp\u003eTaking Clues from Assets 62\u003c\/p\u003e \u003cp\u003eThe Sykes Model 66\u003c\/p\u003e \u003cp\u003eBeyond Assets: Clues from Liabilities and Equity on the Balance Sheet 67\u003c\/p\u003e \u003cp\u003eThe Role of the Appraiser and Appraisal Standards in Valuing Assets 69\u003c\/p\u003e \u003cp\u003eFair Market Value Treatment Assets 70\u003c\/p\u003e \u003cp\u003eFair Value of Assets under FASB (GAAP) and IASB (IFRS) 70\u003c\/p\u003e \u003cp\u003eValuing Intangible Assets on the Balance Sheet 72\u003c\/p\u003e \u003cp\u003eValuing Intangible Assets That Are Not on the Balance Sheet 73\u003c\/p\u003e \u003cp\u003eUsing the MD\u0026amp;A for Insights on Assets 77\u003c\/p\u003e \u003cp\u003eImprovements in Fair Value Disclosures: A Checklist for Investors 78\u003c\/p\u003e \u003cp\u003eAsset-Based Valuation by Industry 79\u003c\/p\u003e \u003cp\u003eSpecial Topics in Asset Valuations: Valuing Assets in Pension Plans 83\u003c\/p\u003e \u003cp\u003eLens Check 84\u003c\/p\u003e \u003cp\u003eConclusion: Asset Values in Bailouts 86\u003c\/p\u003e \u003cp\u003eAppendix 2.1: Common Ratios, Multiples, Averages, and Algorithms Based in Assets—and Examples of Their Use 86\u003c\/p\u003e \u003cp\u003eAppendix 2.2: Asset-Based Approach to Business Valuation (American Society of Appraisers) 90\u003c\/p\u003e \u003cp\u003e\u003cb\u003e3 Valuation Based on Earnings (Income) 103\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eEarnings Defined 103\u003c\/p\u003e \u003cp\u003eTypes of Earnings 104\u003c\/p\u003e \u003cp\u003eOperating Earnings Are Key to Value 106\u003c\/p\u003e \u003cp\u003eEarnings Are Relative to Revenues and Expenses 108\u003c\/p\u003e \u003cp\u003eEarnings Are Ultimately Based on Assets 108\u003c\/p\u003e \u003cp\u003eHard Times Reveal Earnings-Asset Connection 110\u003c\/p\u003e \u003cp\u003eHow the Standard Setters Currently Define Earnings 111\u003c\/p\u003e \u003cp\u003eA Brief Pause to Look at Our Compass 114\u003c\/p\u003e \u003cp\u003eThe Other Side of the Equation: Revenues Minus Expenses 114\u003c\/p\u003e \u003cp\u003eHow XBRL Can Connect the Dots between Earnings and Assets 116\u003c\/p\u003e \u003cp\u003eEarnings Management and Fraud 117\u003c\/p\u003e \u003cp\u003eEarnings Caveat from a Sage 118\u003c\/p\u003e \u003cp\u003eThe Quality of Earnings 119\u003c\/p\u003e \u003cp\u003eModels to Assess Earnings 122\u003c\/p\u003e \u003cp\u003eEarnings Guidance: A Waning Trend? 124\u003c\/p\u003e \u003cp\u003eConsensus Earnings Programs 124\u003c\/p\u003e \u003cp\u003eEarnings Examples 126\u003c\/p\u003e \u003cp\u003eEPS: An Emerging Standard 128\u003c\/p\u003e \u003cp\u003eEarnings-Based Valuation by Industry 129\u003c\/p\u003e \u003cp\u003eImpact on Industries of New Global Accounting Standards for Revenue Recognition 132\u003c\/p\u003e \u003cp\u003eIs a New Earnings Measure Needed? 133\u003c\/p\u003e \u003cp\u003eLens Check 133\u003c\/p\u003e \u003cp\u003eConclusion 134\u003c\/p\u003e \u003cp\u003eAppendix 3.1: Hoover’s Definitions of Basic Income Statement Terms 134\u003c\/p\u003e \u003cp\u003eAppendix 3.2: Ratios and Other Valuation Indicators Using Earnings 138\u003c\/p\u003e \u003cp\u003eAppendix 3.3: Net Income Example 144\u003c\/p\u003e \u003cp\u003e\u003cb\u003e4 Valuation Based on Cash Flow 155\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCash Flow Statements—Something Old, Something New for Investors 156\u003c\/p\u003e \u003cp\u003eValue and Liquidity 157\u003c\/p\u003e \u003cp\u003eCash Flow: What the Global Standard Setters Say 157\u003c\/p\u003e \u003cp\u003eWhat the Cash Flow Statement Shows 158\u003c\/p\u003e \u003cp\u003eAccounting Note: Converting an Indirect Method Statement of Cash Flows to a Direct Method 161\u003c\/p\u003e \u003cp\u003eDCF: Projecting Future Cash Flow 163\u003c\/p\u003e \u003cp\u003eCrystal Ball: Two Kinds of Questions 164\u003c\/p\u003e \u003cp\u003eSome General Methodologies for Considering Cash Flow 168\u003c\/p\u003e \u003cp\u003eCash Flow from Projects: What Investors Should Know 172\u003c\/p\u003e \u003cp\u003eThe Work of Alfred Rappaport 175\u003c\/p\u003e \u003cp\u003eUsing Monte Carlo Simulations for Future Cash Flow Estimates 175\u003c\/p\u003e \u003cp\u003eUsing Cash Flow to Calculate Amortized Cost 191\u003c\/p\u003e \u003cp\u003eIFRS Impact on Cash Flow 191\u003c\/p\u003e \u003cp\u003eCash Flow Patterns in Industries 192\u003c\/p\u003e \u003cp\u003eLens Check 194\u003c\/p\u003e \u003cp\u003eConclusion 195\u003c\/p\u003e \u003cp\u003eAppendix 4.1: AT\u0026amp;T Example 195\u003c\/p\u003e \u003cp\u003eAppendix 4.2: ASC 230 Summary 200\u003c\/p\u003e \u003cp\u003eAppendix 4.3: Summary of IAS 7 201\u003c\/p\u003e \u003cp\u003e\u003cb\u003e5 Valuation Based on Securities Prices 209\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eOverview of Securities Prices 210\u003c\/p\u003e \u003cp\u003eDefinition of Stock Price 211\u003c\/p\u003e \u003cp\u003eSeven Basic Points of Departure to Determining the Value of a Security 213\u003c\/p\u003e \u003cp\u003eApproach 1: Ratios or Formulas That Include Stock Prices 214\u003c\/p\u003e \u003cp\u003eApproach 2: Technical Analysis of Stock Price Movements 216\u003c\/p\u003e \u003cp\u003eApproach 3: Analysis of Values According to Efficient Market–Random Walk Hypothesis 226\u003c\/p\u003e \u003cp\u003eApproach 4: Stock Valuation Based on Expectations 228\u003c\/p\u003e \u003cp\u003eApproach 5: Valuations Implicit in Algorithmic Trading 229\u003c\/p\u003e \u003cp\u003eApproach 6: The Black Swan Approach to Stock Price Valuation 230\u003c\/p\u003e \u003cp\u003eApproach 7: Reflexivity Theory and Stock Values 231\u003c\/p\u003e \u003cp\u003eAn Overview of Chaos\/Complexity Theory 234\u003c\/p\u003e \u003cp\u003eSecurities Valuation as an Asset on the Balance Sheet 236\u003c\/p\u003e \u003cp\u003eThe Duff \u0026amp; Phelps Valuation Model 236\u003c\/p\u003e \u003cp\u003eRevisiting Mark-to-Market 238\u003c\/p\u003e \u003cp\u003eCan We Bring Back the Equity Premium? 241\u003c\/p\u003e \u003cp\u003eReconnecting with the Good Old Capital Asset Pricing Model 243\u003c\/p\u003e \u003cp\u003eStock Price Patterns in Industries 244\u003c\/p\u003e \u003cp\u003eLens Check 244\u003c\/p\u003e \u003cp\u003eConclusion 245\u003c\/p\u003e \u003cp\u003e\u003cb\u003e6 Hybrid Techniques for Valuation 255\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBuilding vs. Buying a Model 255\u003c\/p\u003e \u003cp\u003eA Word about Building a Model within a Model 257\u003c\/p\u003e \u003cp\u003eWords of Caution 258\u003c\/p\u003e \u003cp\u003eFourteen Approaches 258\u003c\/p\u003e \u003cp\u003eUsing Metrics to Measure Management 270\u003c\/p\u003e \u003cp\u003eA Basic Distinction: Residual Income vs. Discounted Cash Flow 271\u003c\/p\u003e \u003cp\u003eOut-of-the-Box, or Generic, Valuation Models 272\u003c\/p\u003e \u003cp\u003eReconciling the Balance Sheet and Income Statement 273\u003c\/p\u003e \u003cp\u003eReconciling the Income Statement to the Statement of Cash Flows 275\u003c\/p\u003e \u003cp\u003eA New Balance Sheet Metric 277\u003c\/p\u003e \u003cp\u003eUse of Hybrid Valuation Approaches in a Key Industry: Energy 278\u003c\/p\u003e \u003cp\u003eConcluding Caveat and a Fifteenth Model 281\u003c\/p\u003e \u003cp\u003eAppendix 6.1: National Standard Company: Description of Bonus Plan Based on EVA 282\u003c\/p\u003e \u003cp\u003e\u003cb\u003e7 Market Value Drivers of Public Corporations: Genius, Liberty, Law, Markets, Governance, and Values 291\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Nonmarketability Discount 292\u003c\/p\u003e \u003cp\u003eSix Key Elements 292\u003c\/p\u003e \u003cp\u003eElement 1: Genius 293\u003c\/p\u003e \u003cp\u003eElement 2: Liberty 300\u003c\/p\u003e \u003cp\u003eElement 3: Law 302\u003c\/p\u003e \u003cp\u003eElement 4: Markets 306\u003c\/p\u003e \u003cp\u003eElement 5: Governance 308\u003c\/p\u003e \u003cp\u003eElement 6: Values 314\u003c\/p\u003e \u003cp\u003eLong-Term Investing 324\u003c\/p\u003e \u003cp\u003eA Note on Valuation for Divestment 326\u003c\/p\u003e \u003cp\u003eConclusion 327\u003c\/p\u003e \u003cp\u003eAppendix 7.1: Rating Governance 328\u003c\/p\u003e \u003cp\u003eAppendix 7.2: Enhanced Business Reporting Framework 335\u003c\/p\u003e \u003cp\u003eAppendix 7.3: The Caux Round Table Principles 339\u003c\/p\u003e \u003cp\u003eAppendix 7.4: Trucost 343\u003c\/p\u003e \u003cp\u003e\u003cb\u003e8 Situational Valuation: Equity Values throughout the Corporate Life Cycle 367\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eScenarios 367\u003c\/p\u003e \u003cp\u003eValuation of Shares under Public Policy Pressure: A Story in Medias Res 368\u003c\/p\u003e \u003cp\u003eValuation of Shares at Par (or No Par) 369\u003c\/p\u003e \u003cp\u003eValuation of Shares in IPOs and Secondary Offerings 369\u003c\/p\u003e \u003cp\u003eValuation of Shares upon the Declaration of a Dividend or a Stock Split 371\u003c\/p\u003e \u003cp\u003eValuation of Shares in Buybacks 371\u003c\/p\u003e \u003cp\u003eValuation of Shares in Companies with Underfunded Defined Benefit Pension Plans 372\u003c\/p\u003e \u003cp\u003eThe Example of Endowments 373\u003c\/p\u003e \u003cp\u003eValuation of Shares Tendered, Exchanged, or Retained in Mergers or Acquisitions 375\u003c\/p\u003e \u003cp\u003eValuation of Shares in Spin-Offs and Divestitures 382\u003c\/p\u003e \u003cp\u003eValuation of Shares Impacted by Shareholder-Led Governance Changes 383\u003c\/p\u003e \u003cp\u003eValuation of Shares in Companies in the Zone of Insolvency or Filing for Bankruptcy 385\u003c\/p\u003e \u003cp\u003eValuation of Shares in Companies Emerging from Bankruptcy 387\u003c\/p\u003e \u003cp\u003eConclusion 388\u003c\/p\u003e \u003cp\u003e\u003cb\u003e9 Conclusion 395\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eAppendices\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eNeed for Humility in Valuation 395\u003c\/p\u003e \u003cp\u003eA True Beauty Contest 396\u003c\/p\u003e \u003cp\u003eNo Single Definition for Valuation 397\u003c\/p\u003e \u003cp\u003eA Word about Genius 398\u003c\/p\u003e \u003cp\u003eReal Impact 399\u003c\/p\u003e \u003cp\u003eA Need for Investor Talent 400\u003c\/p\u003e \u003cp\u003eLooking for the Story 401\u003c\/p\u003e \u003cp\u003eOn the Social Impact of Corporations and Investors 402\u003c\/p\u003e \u003cp\u003eWork in Progress 403\u003c\/p\u003e \u003cp\u003eA Equity vs. Debt Securities: A Global Definition 407\u003c\/p\u003e \u003cp\u003eB Basic Accounting Concepts for Corporate Valuation 411\u003c\/p\u003e \u003cp\u003eSummary of Tentative Global Accounting Decisions on Objectives and Qualitative Characteristics of Accounting 411\u003c\/p\u003e \u003cp\u003eAccounting Principles: U.S. GAAP 416\u003c\/p\u003e \u003cp\u003ec convergence of Global Standards: FASB, IASB, and Their Joint Standards as of June 1, 2010 421\u003c\/p\u003e \u003cp\u003eCurrent Technical Plan and Project Updates for Joint FASB-IASB Projects in 2010 and 2011 421\u003c\/p\u003e \u003cp\u003eD Report to the Congressional Oversight Panel Regarding Fair Value of Certain Securities and Warrants Acquired by the Treasury under TARP 427\u003c\/p\u003e \u003cp\u003eA. Introduction 428\u003c\/p\u003e \u003cp\u003eB. Engagement Overview and Procedures 428\u003c\/p\u003e \u003cp\u003eC. Valuation Methodologies Overview 430\u003c\/p\u003e \u003cp\u003eD. Summary of Findings 437\u003c\/p\u003e \u003cp\u003eE. Assumptions, Qualifications, and Limiting Conditions 439\u003c\/p\u003e \u003cp\u003eAddendum 441\u003c\/p\u003e \u003cp\u003eE The Use of Mathematics in Finance 443\u003c\/p\u003e \u003cp\u003eTypes of Mathematics Used in Corporate Valuation 443\u003c\/p\u003e \u003cp\u003eStatistics 448\u003c\/p\u003e \u003cp\u003eHistograms 451\u003c\/p\u003e \u003cp\u003eGeometry and Trigonometry 451\u003c\/p\u003e \u003cp\u003eConclusion 452\u003c\/p\u003e \u003cp\u003eSymbols Used in Financial Mathematics 452\u003c\/p\u003e \u003cp\u003eF The Modigliani-Miller Theorems 461\u003c\/p\u003e \u003cp\u003eModigliani-Miller Propositions 462\u003c\/p\u003e \u003cp\u003eG Uniform Standards of Professional Appraisal Practice (USPAP) 467\u003c\/p\u003e \u003cp\u003eStandard 9: Business Appraisal, Development 467\u003c\/p\u003e \u003cp\u003eH Global Industry Classification Standard (GICS) Sectors and Industry Groups 473\u003c\/p\u003e \u003cp\u003eI Damodaran Spreadsheets for Valuation 475\u003c\/p\u003e \u003cp\u003eJ Monte Carlo Simulation for Security Investments 479\u003c\/p\u003e \u003cp\u003eVolatility and Time Horizon Exercise 481\u003c\/p\u003e \u003cp\u003eK Antivaluation! Human Valuation and Investment Foibles 483\u003c\/p\u003e \u003cp\u003eSome Common Biases in Valuation Choices 483\u003c\/p\u003e \u003cp\u003eSome Common Fallacies in Valuation Reasoning 486\u003c\/p\u003e \u003cp\u003eAristotle’s 13 Fallacies 487\u003c\/p\u003e \u003cp\u003eFair Value Measurement of Derivatives Contracts 491\u003c\/p\u003e \u003cp\u003eM Final Report of the Advisory Committee on Improvements to Financial Reporting to the United States Securities and Exchange Commission 493\u003c\/p\u003e \u003cp\u003e1. Substantive Complexity 493\u003c\/p\u003e \u003cp\u003e4. Delivering Financial Information 496\u003c\/p\u003e \u003cp\u003eN Valuing Values 501\u003c\/p\u003e \u003cp\u003eThe Methodological Challenge 502\u003c\/p\u003e \u003cp\u003eEconomic Value and Social Value 503\u003c\/p\u003e \u003cp\u003eFinancial Investing vs. Social Investing Tools 508\u003c\/p\u003e \u003cp\u003eValuing Values 512\u003c\/p\u003e \u003cp\u003eO XBRL Guidance 515\u003c\/p\u003e \u003cp\u003eWhat Is XBRL? 515\u003c\/p\u003e \u003cp\u003eHow Can Investors in Companies Using U.S. GAAP Locate and Use XBRL Information? 516\u003c\/p\u003e \u003cp\u003eP Pension Fund Valuation Guidance 521\u003c\/p\u003e \u003cp\u003eQ Stock Indexes 525\u003c\/p\u003e \u003cp\u003eR U.S. Business Cycle Expansions and Contractions 527\u003c\/p\u003e \u003cp\u003eS Wisdom from Norway: Two Speeches from a Norwegian State Pension Plan Inspire a Long-Term View 531\u003c\/p\u003e \u003cp\u003eFrom Oil to Equities: Knut N. Kjær 531\u003c\/p\u003e \u003cp\u003eInvesting for the Long Term: Governor Svein Gjedrem 532\u003c\/p\u003e \u003cp\u003eRecommended Reading on Corporate Securities Valuation 539\u003c\/p\u003e \u003cp\u003eIndex 541\u003c\/p\u003e  \"Bob Monks' new book, Corporate valuation for portfolio investment: analyzing assets, earnings, cash flow, stock price, governance and special situations, is a massive tome, weighing in at more than 550 pages that are really aimed at institutional investors...  \u003cp\u003eThe book is eminently readable, exhaustively treating the subject in simple but engaging language, and using practical examples wherever possible. It explains the concepts it uses as it introduces them. It is both ambitious and modest at the same time, covering all aspects of its subject, but disclaiming precision. It admits the hazards of ‘determining the present value of future worth’ and that, ‘despite GAAP and IFRS, financial reports remain only dim mirrors of company value’, stressing other factors ‘such as qualitative measures of corporate governance.’\u003c\/p\u003e \u003cp\u003eGetting to the IR heart, the book claims ‘valuation begins from the hour a company’s leaders find equity investors who believe so strongly in the company’s economic prospects that they are willing to provide capital for it with no strings attached. This belief in a company’s future – this hope – is what makes the value of the stock something more than the current value of its assets if valued in a fire sale.’\u003c\/p\u003e \u003cp\u003eOf course the book does, at length, consider the different ways to assess the qualitative aspects of a company’s value, but it also expands on that ‘hope’ that, ultimately, is the added value of good investor relations beyond sending out the spreadsheets. It is in that qualitative space where an effective IRO can tease out and illustrate the factors that are not susceptible to number crunching.\u003c\/p\u003e \u003cp\u003eAlthough the book is officially aimed at fund managers, the authors do express the hope that others will find it interesting and of value. And they should. Its combination of penetrating insights that are sharply expressed and carefully built-up reasoning make it not only an amazingly readable work on one of the drier branches of the dismal science of corporate valuation, but also eminently well suited to analysts, IROs and others who want a refreshing and provocative look at their subject.\"\u003cbr\u003e — \u003cb\u003eIan Williams,\u003c\/b\u003e Inside Investor Relations, December 3, 2010\u003c\/p\u003e  \u003cb\u003eRobert A. G. Monks\u003c\/b\u003e is a pioneering institutional shareholder activist. He founded Institutional Shareholder Services and the LENS Fund, and was chair of the Boston Company. He was a pension administrator in the Department of Labor and was a founding trustee of the Federal Employees Retirement System. Monks is the author or coauthor of a number of books; his most recent are \u003ci\u003eCorpocracy and Corporate Governance\u003c\/i\u003e, both from Wiley.  \u003cp\u003e\u003cb\u003eAlexandra Reed Lajoux\u003c\/b\u003e is Chief Knowledge Officer at the National Association of Corporate Directors (NACD). She has been an editor for Directors \u0026amp; Boards, Mergers \u0026amp; Acquisitions, and NACD's Director's Monthly. Lajoux is the author or coauthor of several books on mergers and acquisitions and received her PhD from Princeton University.\u003c\/p\u003e  \u003cp\u003eCorporate value is a moving target, and it is clear that corporate valuation is one of the most difficult endeavors in the worlds of finance and business. But a realistic assessment of value is key to investing success.\u003c\/p\u003e \u003cp\u003eNobody understands this better than authors Robert Monks—who has spent a lifetime making sense ofvalue-based investments—and Alexandra Lajoux, an ardent proponent of the overarching principle of stewardship and long-term sustainable value creation.\u003c\/p\u003e \u003cp\u003eDesigned for the professional investor who is building an investment portfolio that includes equity, Corporate Valuation for Portfolio Investment takes you through a range of approaches, including those primarily based on assets, earnings, cash flow, and securities prices, as well as hybrid techniques. Along the way, it discusses the importance of qualitative measures such as governance—which go well beyond generally accepted accounting principles and international financial reporting standards—and addresses a variety of special situations in the life cycle of businesses, including initial public offerings and bankruptcies. Engaging, informative, and current, Corporate Valuation for Portfolio Investment also contains formulas, checklists, and models that the authors, or other experts, recommend for making equity investments in this new \"post-Meltdown\" era.\u003c\/p\u003e \u003cp\u003ePage by page, this reliable resource not only covers existing valuation techniques based on assets, earnings, cash flow, and securities prices, but also:Presents more than a dozen hybrid approaches to valuation, explaining their relevance to different types of investorsCharts stock market trends—verbally and visually—enabling investors to think like traders when neededOffers valuation guidance based on less quantitative factors, namely management quality and factors relating to the company and the economy\u003c\/p\u003e \u003cp\u003eProvides guidance for holding on to investments during times of change in the life cycle of a corporation\u003c\/p\u003e \u003cp\u003eAnd much more\u003c\/p\u003e \u003cp\u003eAs long as investors thoughtfully use a variety of tools to make their investments, corporate securities will continue to generate wealth for their owners and for society at large. Corporate Valuation for Portfolio Investment puts this dynamic discipline in perspective and presents proven ways to determine the value of corporate equity securities for the purpose of portfolio investment.\u003c\/p\u003e  \u003cp\u003eCorporate Valuation for Portfolio Investment\u003c\/p\u003e \u003cp\u003e\"The valuation of securities . . . is as big a subject as they come, running in multi?-dimensions from qualitative to psychological, from static todynamic, from one dominant measure to a complex soup, and using measures that range from those that are internal to the observer to those determined bythe markets. In Corporate Valuation for Portfolio Investment, Bob andhis worthy coauthor cover the full range of valuation methods.\"\u003c\/p\u003e \u003cp\u003e—From the Foreword by Dean LeBaron\u003c\/p\u003e \u003cp\u003eCorporate valuation for portfolio investment means determining the present value of future worth. While this may sound like a straightforward task, in reality, it takes time and hard-earned experience to effectively perform this essential financial function.\u003c\/p\u003e \u003cp\u003eRobert Monks and Alexandra Lajoux understand the difficulty of this endeavor. That's why they have created Corporate Valuation for Portfolio Investment. Filled with in-depth insights and expert advice, this reliable guide addresses the many facets of valuation and reveals what it takes to determine the value of corporate equity securities for the purpose of portfolio investment.\u003c\/p\u003e \u003cp\u003eWritten with the professional investor in mind, Corporate Valuation for Portfolio Investment takes you through a wide range of approaches—including those primarily based in assets, earnings, cash flow, and securities prices—and discusses hybrid valuation techniques that combine aspects of these four main sources of valuation information.\u003c\/p\u003e \u003cp\u003eAlong the way, it also examines the importance of qualitative measures such as governance and details a variety of special situations in the life cycle of businesses, including stock splits, spin-offs, and pension funding.\u003c\/p\u003e \u003cp\u003eIf you're seeking superior returns from investments in corporate equity, then you have to have a firm understanding of valuation. With Corporate Valuation for Portfolio Investment as your guide, you'll be in a better position to improve your sense of a company's worth and the possible price ranges for buy, sell, and hold decisions.\u003c\/p\u003e","brand":"Bloomberg Press","offers":[{"title":"Default Title","offer_id":47988994638053,"sku":"NP9781576603178","price":100.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9781576603178.jpg?v=1761782355","url":"https:\/\/k12savings.com\/products\/corporate-valuation-for-portfolio-investment-isbn-9781576603178","provider":"K12savings","version":"1.0","type":"link"}