Valuation Approaches and Metrics

Valuation Approaches and Metrics is a great book for both finance practitioners and researchers, beginners or professionals, that tends to use relative valuation models and multiples and comparables in valuation. This book discusses the theory and practice of valuation of companies and stocks, and the invaluable overview of the topic from both a practical and scholarly perspective. Valuation Approaches and Metrics 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", and 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.