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.
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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