A comprehensive guide to the theory and application of valuation, along with useful models, tools, and tips for analysts
Financial Valuation: Applications and Models provides authoritative reference and practical guidance on the appropriate, defensible way to prepare and present business valuations. With contributions by 30 top experts in the field, this updated edition provides an essential resource for those seeking the most up-to-date methods, with a strong emphasis on applications and models. Coverage includes the latest approaches to the valuation of closely held businesses, nonpublic entities, intangibles, and other assets, with comprehensive discussion on valuation theory, a consensus view on application, and the tools to make it happen.
This 5th edition has been revised throughout, introducing new and extended coverage of essential topics like: S Corps, discounts for lack of marketability, cost of capital resources, cash flow methods, depositions and trials, and more. Packed with examples, checklists, and models to help navigate valuation projects, this book is an excellent practical tool for working professionals. It also provides hundreds of expert tips and best practices in clear, easy-to-follow language. The companion website provides access to extensive appendix materials, and the perspectives of valuation thought leaders add critical insight.
- Learn the art and science of estimating the value of businesses, including closely held businesses and nonpublic entities
- Determine the monetary value of intangible assets like goodwill, intellectual property, and brand recognition
- Update your knowledge with the latest valuation methods, approaches, and tools
- Use checklists, templates, models, and examples to make your valuations easier
Table of Contents
Financial Valuation: Applications and Models, Book + Website, 5th Edition
About the Editor xvii
About the Authors xix
Acknowledgments xxxv
Preface xxxvii
CHAPTER 1 Introduction to Financial Valuation 1
CHAPTER 2 Standards of Value 131
CHAPTER 3 Research and Its Presentation 163
CHAPTER 4 Financial Statement and Company Risk Analysis 181
CHAPTER 5 Income Approach 219
CHAPTER 6 Cost of Capital/Rates of Return 291
CHAPTER 7 International Cost of Capital 377
CHAPTER 8 Market Approach 403
CHAPTER 9 Asset Approach 455
CHAPTER 10 Valuation Discounts and Premiums 507
CHAPTER 11 Addendum--Sample Valuation Report 617
CHAPTER 12 Business Valuation Standards 709
CHAPTER 13 Valuation of Pass-Through Entities 737
CHAPTER 14 Estate, Gift, and Income Tax Valuations 777
CHAPTER 15 Valuation of Family Limited Partnerships 821
CHAPTER 16 Summary of Tax Court Case Valuation Issues 877
CHAPTER 17 Shareholder Disputes 881
CHAPTER 18 Employee Stock Ownership Plans 915
CHAPTER 19 Valuation in the Divorce Setting 951
CHAPTER 20 Valuation Issues in Small Businesses 977
CHAPTER 21 Valuation Issues in Professional Practices 993
CHAPTER 22 Reasonable Compensation 1015
CHAPTER 23 The Valuator as Expert Witness 1039
CHAPTER 24 Fair Value Measurement and the Valuation of Intangible Assets 1059
CHAPTER 25 Marketing, Managing, and Making Money in a Valuation Services Group 1139
CHAPTER 26 Business Damages 1141
CHAPTER 27 Other Valuation Service Areas 1175
CHAPTER 28 Valuation of Healthcare Service Businesses 1181
CHAPTER 29 Determination of Compensation in the Healthcare Industry 1235
CHAPTER 30 Special Industry Valuations 1245
CHAPTER 31 Buy-Sell Agreements 1303
CHAPTER 32 Valuation Views and Controversial Issues: an Illustration 1335
About the Website 1453
Index 1457
Financial Valuation Workbook: Step-by-Step Exercises and Tests to Help You Master Financial Valuation, 5th Edition
Preface ix
Acknowledgments xi
About the Author xiii
CHAPTER 1 Valuation Case Study Exercises 1
1.14 Addendum: Discount Case Study Exercises 90
CHAPTER 2 Valuation Case Study Exercises: Solutions and Explanations 93
2.1 Addendum: Discount Case Study Exercises 127
CHAPTER 3 Financial Valuation Applications and Models Companion Exercises and Test Questions 129
Answer Grid 173
CHAPTER 4 ValTips 183
CHAPTER 5 Income Approach Valuation Process Flowchart 223
CHAPTER 6 Marketing, Managing, and Making Money in Valuation Services 233
CHAPTER 7 Practice Management Workflow Procedures 259
CHAPTER 8 Checklists 313
About the Website 435
Index 437
