Aswath Damodaran
INVESTMENT VALUATION:
SECOND EDITION

Chapter 1: Introduction to Valuation  3
Chapter 2: Approaches to Valuation  16
Chapter 3: Understanding Financial Statements  37
Chapter 4: The Basics of Risk  81
Chapter 5: Option Pricing Theory and Models  121
Chapter 6: Market Efficiency: Theory and Models  152
Chapter 7: Riskless Rates and Risk Premiums  211
Chapter 8: Estimating Risk Parameters and Costs of Financing  246
Chapter 9: Measuring Earnings  311
Chapter 10: From Earnings to Cash Flows  341
Chapter 11: Estimating Growth  373
Chapter 12: Closure in Valuation: Estimating Terminal Value  425
Chapter 13: Dividend Discount Models  450
Chapter 14: Free Cashflow to Equity Models  487
Chapter 15: Firm Valuation: Cost of Capital and APV Approaches  533
Chapter 16: Estimating Equity Value Per Share  593
Chapter 17: Fundamental Principles of Relative Valuation  637
Chapter 18: Earnings Multiples  659
Chapter 19: Book Value Multiples  718
Chapter 20: Revenue and Sector-Specific Multiples  760 Chapter 21: Valuing Financial Service Firms  802
Chapter 22: Valuing Firms with Negative Earnings  847
Chapter 23: Valuing Young and Start-up Firms  891
Chapter 24: Valuing Private Firms  928
Chapter 25: Acquisitions and Takeovers  969
Chapter 26: Valuing Real Estate  1028
Chapter 27: Valuing Other Assets  1067
Chapter 28: The Option to Delay and Valuation Implications  1090
Chapter 29: The Option to Expand and Abandon: Valuation Implications  1124
Chapter 30: Valuing Equity in Distressed Firms  1155
Chapter 31: Value Enhancement: A Discounted Cashflow Framework  1176
Chapter 32: Value Enhancement: EVA, CFROI and Other Tools  1221
Chapter 33: Valuing Bonds  1256
Chapter 34: Valuing Forward and Futures Contracts  1308
Chapter 35: Overview and Conclusions  1338
References  1359