Valuation of Companies in Emerging Markets: A Practical Approach

ISBN-13: 9780471220787 / Angielski / Twarda / 2002 / 528 str.

Luis E. Pereiro

Opis

A comprehensive guide focusing on the valuation issues for emerging markets
Valuation of Companies in Emerging Economies takes a practical, step-by-step approach to valuing both public and closely held companies in emerging economies for merger or acquisition purposes. These extremely volatile markets present their own special set of challenges, which often differ from country to country. The author provides real world, best valuation practices in both developed and emerging markets and offers links to relevant Internet resources to provide CEOs, CFOs, venture capitalists, and financial analysts with the information they need to accurately value companies around the world.
Luis E. Pereiro (Buenos Aires, Argentina) is a consultant who has steered several strategic change projects in multinational corporations such as Bank of America, Union Carbide, and Nissho Iwai. He is Interim Dean of the Universidad Tocuato Di Tella, Buenos Aires, as well as Director of its MBA program and Director of the Center for Entrepreneurship and Business Venturing. His numerous articles have appeared in many prestigious business journals and books.
Over the years, financial professionals around the world have looked to the Wiley Finance series and its wide array of bestselling books for the knowledge, insights, and techniques that are essential to success in financial markets. As the pace of change in financial markets and instruments quickens, Wiley Finance continues to respond. With critically acclaimed books by leading thinkers on value investing, risk management, asset allocation, and many other critical subjects, the Wiley Finance series provides the financial community with information they want. Written to provide professionals and individuals with the most current thinking from the best minds in the industry, it is no wonder that the Wiley Finance series is the first and last stop for financial professionals looking to increase their financial expertise.

Spis treści

FOREWORD xvii

CHAPTER 1 Valuing Companies in Emerging Markets: Importance and Challenges 1

CHAPTER 2 Valuing Companies in Developed Markets: A Review 32

CHAPTER 3 Fundamental Discounted Cashflow Valuation in Emerging Markets: Cashflows and the Cost–of–Equity Capital 92

CHAPTER 4 Fundamental Discounted Cashflow Valuation in Emerging Markets: Unsystematic Risk and Synthetic Company Value 175

CHAPTER 5 Valuing Companies in Emerging Markets via Real Options 222

CHAPTER 6 Relative Valuation in Emerging Markets: Comparable Companies and Transactions 247

CHAPTER 7 Valuing Technology Startups in Emerging Markets 319

APPENDIX A Valuation Parameters in the Reference Emerging Markets 429

APPENDIX B Valuation Parameters in the United States 438

APPENDIX C Valuation Parameters in Argentina 449

APPENDIX D Sources of Data on Comparable Companies and Transactions 462

APPENDIX E Valuation Parameters of U.S. Internet Companies 464

APPENDIX F Present Value of Asset/Present Value of Exercise Price 483

APPENDIX G Best Valuation Practices in the United States and Argentina 488

INDEX 497

O autorze

LUIS E. PEREIRO is a consultant who has steered several strategic change projects in multinational corporations such as Bank of America, Union Carbide, and Nissho Iwai. He is Professor of Entrepreneurship & Strategy and Director of the Center for Entrepreneurship and Business Venturing at Universidad Torcuato Di Tella in Buenos Aires, Argentina. He is also a visiting professor at HEC–School of Management in Paris. His numerous articles have appeared in many prestigious business journals and books.

Blurb

Reducing variables and negotiating risk in lucrative emerging markets

"A timely book on the critical subject of valuation in emerging markets. Academics and practitioners have provided over the last few years many pieces of the puzzle, and Pereiro successfully puts them all together. With a broad overview of the underlying theory and many examples in which the theory is put to work, this book is bound to become one of the must–read references on the topic."
––Javier Estrada, IESE Business School (Barcelona, Spain), Editor–in–Chief, Emerging Markets Review

"Valuation is a key factor for success in the business of private equity. This is a fundamental book to be read by all professionals involved in private equity in emerging markets. Valuation of Companies in Emerging Markets: A Practical Approach contains a comprehensive set of valuation tools, and the book provides a very focused and pragmatic approach to the techniques that are applied in practice by private equity investors in nontraditional markets."
–– Carlos Wagener, HSBC Private Equity Latin America

"Two mistakes are common in the valuation of companies in emerging markets: inappropriate application of models originally developed for mature economies, and the use of black boxes–– displaying numbers without explaining the rationale behind them. Valuation of Companies in Emerging Markets: A Practical Approach adds value to the theory and practice of company valuation and helps to avoid these mistakes."
–– Ernesto Gaba, Chief Economist, BBVA Banco Francès

"A required reading for practitioners and everybody who deals with investment in emerging markets. This book contains a comprehensive set of tools and examples for tackling practical problems of valuation. Pereiro′s balanced exposition of theory and practice as it applies to the changing conditions of emerging markets fills an important gap in the literature."
–– Enrique R. Arzac, Professor of Finance and Economics, Graduate School of Business, Columbia University

"...a well–structured analysis of valuation in emerging countries. I find the conceptual framework attractive and the empirical applications excellent."
–– Bruno Solnik, Professor of Finance, HEC–School of Management (France)

"What I like about the book is that it delivers what it promises–– it is practical. Better yet, it achieves this without descending to the mere cookbook–recipe level. The user gets a good review of the defensible alternatives, with pros and cons; and where judgment is required, the recommendations reveal a great deal of common sense."
–– Piet Sercu, Professor of International Finance, PwC Chair "Value and Risk", DTEW, University of Leuven (Belgium)