For upper-division undergraduate and MBA students as well as business professionals.Seeing the economic realities of the modern corporation through an integrated approach.Titman/Martin presents an integrated approach to both project and enterprise valuation, showing readers the economic realities that today's modern corporations face. This text also goes beyond standard DCF analysis by including additional valuation methods that are commonly used in practice, such as comparables, simulations, and real options.The second edition includes an increased emphasis on enterprise valuation, a new chapter on financial forecasting, and enhanced examples and illustrations.
Chapter 1. Overview of ValuationPART I: Project Analysis Using Discounted Cash Flow (DCF)Chapter 2. Forecasting and Valuing Cash FlowsChapter 3. Project Risk AnalysisPART II: Cost of CapitalChapter 4. Estimating a Firm's Cost of CapitalChapter 5. Estimating Required Rates of Return for ProjectsPART III: Financial Statements and Valuation Chapter 6. Forecasting Financial PerformanceChapter 7. Earnings Dilution, Incentive Compensation, and Project Selection PART IV: Enterprise ValuationChapter 8. Relative Valuation Using Market Comparables Chapter 9. Enterprise Valuation Chapter 10. Valuation in a Private Equity Setting PART V: Futures, Options, and the Valuation of Real InvestmentsChapter 11. Using Futures and Options to Value Real InvestmentsChapter 12. Managerial Flexibility and Project Valuation: Real Options