Determining Value
Valuation Models & Financial Statements
By Richard Barker
Financial Times / Pearson Education
September 2001
ISBN: 027363979X
400 Pages
$65.00 paper original
Final year undergraduates of business, finance students, MBA and Postgraduate students of business and/or finance. It will also be of keen interest to professional practising financial analysts. This book is about the methods used to value companies. Valuation methods such as the price - earnings ratio, dividend yield and EVA are found frequently in stockholder reports and financial press and there has been an explosion of interest in 'shareholder value' in recent years with a corresponding need to understand how value is created and measured. The book contains both the analytical review of valuation models and also evaluation of the data available for use in valuation models. This is the first time that this information has been available in a textbook and been academically and critically evaluated.Features:
Covers why accounting information is useful in the valuation of shares, the relative strengths and weaknesses of alternative valuation models such as the price-earnings ratio, return on capital employed, and economic value added. Shows how alternative valuation models can be reconciled to one another within a theoretically sound valuation framework. Shows how creative accounting can affect valuation. Three parts cover the fundamentals of accounting and finance, valuation models and stock market practice. Extensive use of examples and diagrams to illustrate key concepts. Each chapter contains a summary of key learning points. Comprehensive overview of valuation methods Unique integration of the theory of valuation and the practice of financial statement analysis Extracts from the Financial Times with a linking paragraph to reinforce relevance to practice Simple numerical examples to support all stages of analysis Draws upon author's experience of working with financial market practitioners.