Includes bibliographical references and index

Introduction to valuation -- Approaches to valuation -- Understanding financial statements -- The basics of risk -- Option pricing theory and models -- Market efficiency-definition, tests, and evidence -- Riskless rates and risk premiums -- Estimating risk parameters and costs of financing -- Measuring earnings -- From earnings to cash flows -- Estimating growth -- Closure in valuation: estimating terminal value -- Dividend discount models -- Free cash flow to equity discount models -- Firm valuation: cost of capital and adjusted present value approaches -- Estimating equity value per share -- Fundamental principles of relative valuation -- Earnings multiples -- Book value multiples -- Revenue multiples and sector-specific multiples -- Valuing financial service firms -- Valuing firms with negative or abnormal earnings -- Valuing young or start-up firms -- Valuing private firms -- Aquisitions and takeovers -- Valuing real estate -- Valuing other assets -- The option to delay and valuation implications -- The options to expand and to abandon: valuation implications -- Valuing equity in distressed firms -- Value enhancement: a discounted cash flow valuation framework -- Value enhancement: economic value added, cash flow return on investment, and other tools -- Probabilistic approaches in valuation: scenario analysis, decision trees, and simulations -- Overview and conclusion.