Corporate Valuation for Portfolio Investment: Analyzing Assets, Earnings, Cash Flow, Stock Price, Governance, and Special Situations - Hardcover

by Robert A. G. Monks (Author), Alexandra Reed Lajoux (Author), Dean Labaron (Foreword by)

A detailed guide to the discipline of corporate valuation

Designed for the professional investor who is building an investment portfolio that includes equity, Corporate Valuation for Portfolio Investment takes you through a range of approaches, including those primarily based on assets, earnings, cash flow, and securities prices, as well as hybrid techniques.

Along the way, it discusses the importance of qualitative measures such as governance, which go well beyond generally accepted accounting principles and international financial reporting standards, and addresses a variety of special situations in the life cycle of businesses, including initial public offerings and bankruptcies. Engaging and informative, Corporate Valuation for Portfolio Investment also contains formulas, checklists, and models that the authors, or other experts, have found useful in making equity investments.

• Presents more than a dozen hybrid approaches to valuation, explaining their relevance to different types of investors
• Charts stock market trends, both verbally and visually, enabling investors to think like traders when needed
• Offers valuation guidance based on less quantitative factors, namely management quality and factors relating to the company and the economy

Corporate Valuation for Portfolio Investment puts this dynamic discipline in perspective and presents proven ways to determine the value of corporate equity securities for the purpose of portfolio investment.

Front Jacket

Corporate value is a moving target, and it is clear that corporate valuation is one of the most difficult endeavors in the worlds of finance and business. But a realistic assessment of value is key to investing success.

Nobody understands this better than authors Robert Monks--who has spent a lifetime making sense ofvalue-based investments--and Alexandra Lajoux, an ardent proponent of the overarching principle of stewardship and long-term sustainable value creation.

Designed for the professional investor who is building an investment portfolio that includes equity, Corporate Valuation for Portfolio Investment takes you through a range of approaches, including those primarily based on assets, earnings, cash flow, and securities prices, as well as hybrid techniques. Along the way, it discusses the importance of qualitative measures such as governance--which go well beyond generally accepted accounting principles and international financial reporting standards--and addresses a variety of special situations in the life cycle of businesses, including initial public offerings and bankruptcies. Engaging, informative, and current, Corporate Valuation for Portfolio Investment also contains formulas, checklists, and models that the authors, or other experts, recommend for making equity investments in this new "post-Meltdown" era.

Page by page, this reliable resource not only covers existing valuation techniques based on assets, earnings, cash flow, and securities prices, but also: Presents more than a dozen hybrid approaches to valuation, explaining their relevance to different types of investorsCharts stock market trends--verbally and visually--enabling investors to think like traders when neededOffers valuation guidance based on less quantitative factors, namely management quality and factors relating to the company and the economy

Provides guidance for holding on to investments during times of change in the life cycle of a corporation

And much more

As long as investors thoughtfully use a variety of tools to make their investments, corporate securities will continue to generate wealth for their owners and for society at large. Corporate Valuation for Portfolio Investment puts this dynamic discipline in perspective and presents proven ways to determine the value of corporate equity securities for the purpose of portfolio investment.

Back Jacket

Corporate Valuation for Portfolio Investment

"The valuation of securities . . . is as big a subject as they come, running in multi?-dimensions from qualitative to psychological, from static todynamic, from one dominant measure to a complex soup, and using measures that range from those that are internal to the observer to those determined bythe markets. In Corporate Valuation for Portfolio Investment, Bob andhis worthy coauthor cover the full range of valuation methods."

--From the Foreword by Dean LeBaron

Corporate valuation for portfolio investment means determining the present value of future worth. While this may sound like a straightforward task, in reality, it takes time and hard-earned experience to effectively perform this essential financial function.

Robert Monks and Alexandra Lajoux understand the difficulty of this endeavor. That's why they have created Corporate Valuation for Portfolio Investment. Filled with in-depth insights and expert advice, this reliable guide addresses the many facets of valuation and reveals what it takes to determine the value of corporate equity securities for the purpose of portfolio investment.

Written with the professional investor in mind, Corporate Valuation for Portfolio Investment takes you through a wide range of approaches--including those primarily based in assets, earnings, cash flow, and securities prices--and discusses hybrid valuation techniques that combine aspects of these four main sources of valuation information.

Along the way, it also examines the importance of qualitative measures such as governance and details a variety of special situations in the life cycle of businesses, including stock splits, spin-offs, and pension funding.

If you're seeking superior returns from investments in corporate equity, then you have to have a firm understanding of valuation. With Corporate Valuation for Portfolio Investment as your guide, you'll be in a better position to improve your sense of a company's worth and the possible price ranges for buy, sell, and hold decisions.

Author Biography

Robert A. G. Monks is a pioneering institutional shareholder activist. He founded Institutional Shareholder Services and the LENS Fund, and was chair of the Boston Company. He was a pension administrator in the Department of Labor and was a founding trustee of the Federal Employees Retirement System. Monks is the author or coauthor of a number of books; his most recent are Corpocracy and Corporate Governance, both from Wiley.

Alexandra Reed Lajoux is Chief Knowledge Officer at the National Association of Corporate Directors (NACD). She has been an editor for Directors & Boards, Mergers & Acquisitions, and NACD's Director's Monthly. Lajoux is the author or coauthor of several books on mergers and acquisitions and received her PhD from Princeton University.