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

  • 10h 1m
  • Alexandra Reed Lajoux, Robert A. G. Monks
  • Bloomberg L.P.
  • 2011

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.

About the Authors

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.

In this Book

  • Foreword
  • Corporate Valuation for Portfolio Investment—A Philosophical Framework
  • Valuation Based on Assets
  • Valuation Based on Earnings (Income)
  • Valuation Based on Cash Flow
  • Valuation Based on Securities Prices
  • Hybrid Techniques for Valuation
  • Market Value Drivers of Public Corporations—Genius, Liberty, Law, Markets, Governance, and Values
  • Situational Valuation—Equity Values throughout the Corporate Life Cycle
  • Conclusion
  • Recommended Reading on Corporate Securities Valuation