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Details
Table of Contents
Intro
Acknowledgments
Contents
List of Figures
List of Tables
Part I: A Short Overview of Valuations
1: Introduction
2: Understanding Financial Valuations: Foundations and Basic Traditional Techniques
2.1 Background
2.2 It's All About Trust
2.3 What Is a Valuation?
2.4 The Advantages and Disadvantages of Corporate Valuations
2.5 What Does a Corporate Valuation Reflect?
2.6 Different Valuation Methods
2.7 What Are Capitalization Rates? Why Are They Important?
2.7.1 Explaining the Formula Elements
2.8 Valuations in New Technology Industries
2.9 Conclusion
Part II: Overcoming Valuation Hurdles: How to Conduct Valuations Under Unique Circumstances
3: Understanding the Basic Elements of Stockholder Statements and Their Use in Valuations
3.1 Background
3.2 The Balance Sheet
3.2.1 The Balance Sheet Identity
3.2.1.1 Assets
3.2.2 Liabilities
3.2.2.1 Stockholder Equity
3.2.3 Book Value Versus Market Value
3.2.4 Enterprise Value
3.3 The Profit and Loss (PL) Report or Income Statement
3.3.1 Earnings Calculations
3.3.2 The Statement of Cash Flows
3.3.3 Non-operating Assets
3.3.3.1 Investment Operations
3.3.3.2 Financing Operations
3.3.4 Notes to the Financial Statements
3.3.5 Financial Statement Analysis
4: Valuation Methods: The First Chicago Venture Method and the Use of Real Options
4.1 The Use of Multiples with the First Chicago Venture Method
4.2 Finding Similar Companies
4.3 Valuation Through the Use of Real Options: What Is It and When Is It Used?
Part III: Behavioral Factors: How Psychology Affects Bias in Valuations
5: Introduction to Behavioral Finance
5.1 Background
5.2 Investors' Behavior in the Financial Markets
5.2.1 The Hot Hand Fallacy
5.2.2 The Efficient Market Hypothesis
5.2.3 The Psychology of Tail Events
5.2.4 The Availability Heuristic: Why Does an Event Happen?
5.2.5 Mental Accounting
5.2.6 Stock Market Underreaction and Overreaction
5.2.7 Investors' Attention and Trade Shares
5.2.8 Anchoring
5.2.9 Hindsight Bias
5.2.10 Endowment Effects
5.3 Do Experts Exhibit Biases?
6: An Overview of Investor Behavior in Financial Markets and Psychological Influences on Valuations
6.1 Background
6.2 Optimism and Expectations in the Financial Aspect
6.3 Attention and Its Effect on Valuations
6.3.1 Psychology Framework: Attention Theory
6.3.2 Selective Attention and Information Processing
6.3.3 Attention Theory Mechanisms
6.3.4 The Role of Attention in Capital Markets
6.3.5 Attention Hypothesis
6.4 The Myopic Aspect of Skewness Investment
References
7: How to Overcome Investor Behavior and Psychological Influences in Valuations: How to Evaluate a Dream?
7.1 Background
7.2 Valuation of Companies
7.3 The r in rNPV
7.4 Valuation of Technology
Acknowledgments
Contents
List of Figures
List of Tables
Part I: A Short Overview of Valuations
1: Introduction
2: Understanding Financial Valuations: Foundations and Basic Traditional Techniques
2.1 Background
2.2 It's All About Trust
2.3 What Is a Valuation?
2.4 The Advantages and Disadvantages of Corporate Valuations
2.5 What Does a Corporate Valuation Reflect?
2.6 Different Valuation Methods
2.7 What Are Capitalization Rates? Why Are They Important?
2.7.1 Explaining the Formula Elements
2.8 Valuations in New Technology Industries
2.9 Conclusion
Part II: Overcoming Valuation Hurdles: How to Conduct Valuations Under Unique Circumstances
3: Understanding the Basic Elements of Stockholder Statements and Their Use in Valuations
3.1 Background
3.2 The Balance Sheet
3.2.1 The Balance Sheet Identity
3.2.1.1 Assets
3.2.2 Liabilities
3.2.2.1 Stockholder Equity
3.2.3 Book Value Versus Market Value
3.2.4 Enterprise Value
3.3 The Profit and Loss (PL) Report or Income Statement
3.3.1 Earnings Calculations
3.3.2 The Statement of Cash Flows
3.3.3 Non-operating Assets
3.3.3.1 Investment Operations
3.3.3.2 Financing Operations
3.3.4 Notes to the Financial Statements
3.3.5 Financial Statement Analysis
4: Valuation Methods: The First Chicago Venture Method and the Use of Real Options
4.1 The Use of Multiples with the First Chicago Venture Method
4.2 Finding Similar Companies
4.3 Valuation Through the Use of Real Options: What Is It and When Is It Used?
Part III: Behavioral Factors: How Psychology Affects Bias in Valuations
5: Introduction to Behavioral Finance
5.1 Background
5.2 Investors' Behavior in the Financial Markets
5.2.1 The Hot Hand Fallacy
5.2.2 The Efficient Market Hypothesis
5.2.3 The Psychology of Tail Events
5.2.4 The Availability Heuristic: Why Does an Event Happen?
5.2.5 Mental Accounting
5.2.6 Stock Market Underreaction and Overreaction
5.2.7 Investors' Attention and Trade Shares
5.2.8 Anchoring
5.2.9 Hindsight Bias
5.2.10 Endowment Effects
5.3 Do Experts Exhibit Biases?
6: An Overview of Investor Behavior in Financial Markets and Psychological Influences on Valuations
6.1 Background
6.2 Optimism and Expectations in the Financial Aspect
6.3 Attention and Its Effect on Valuations
6.3.1 Psychology Framework: Attention Theory
6.3.2 Selective Attention and Information Processing
6.3.3 Attention Theory Mechanisms
6.3.4 The Role of Attention in Capital Markets
6.3.5 Attention Hypothesis
6.4 The Myopic Aspect of Skewness Investment
References
7: How to Overcome Investor Behavior and Psychological Influences in Valuations: How to Evaluate a Dream?
7.1 Background
7.2 Valuation of Companies
7.3 The r in rNPV
7.4 Valuation of Technology