Valuation Approaches and Metrics: A Survey of the Theory and Evidence

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Valuation Approaches and Metrics focuses on the theory and practice of valuation of companies and stocks, providing an invaluable overview of the topic from both a practical and scholarly perspective.



Valuation Approaches and Metrics reviews the finance literature on valuation and presents three approaches to valuation:



· discounted cash flow valuation relating the value of an asset to the present value of expected future cash flows on that asset.

· liquidation and accounting valuation built around valuing the existing assets of a firm using accounting estimates of value or "book value"

· relative valuation estimating the value of an asset by looking at the pricing of 'comparable' assets relative to a common variable like earnings, cash flows, book value or sales.



Valuation Approaches and Metrics should be required reading for both finance practitioners and researchers.