The Dark Side of Valuation (Second Edition)

Aswath Damodaran

I don't enjoy playing the role of a scold, but there are practices that I see in valuation that leave me flabbergasted. In my first edition, I looked at these practices in the valuations of young, technology companies. In this new edition, I have expanded my search to find the dark side of valuation in a much wider array of valuations.

Preface to the book

1            The Dark Side of Valuation
Enlightenment: The Tools
2            Intrinsic Valuation
3            Probabilistic Valuation: Scenario Analysis, Decision Trees & Simulations
4            Relative Valuation
5            Option Valuation
The Dark Side of Macro Inputs
6            A Shaky Base: A Risky Risk free Rate
7            Risky Ventures: Assessing the Price of Risk
8            Macro Matters: The Real Economy
The Dark Side across the Life Cycle
9            Baby Steps - Valuing young and start-up companies
10            Shooting Stars - Valuing growth companies
11            Not so staid - Valuing mature companies
12            The inevitable end - Valuing companies in distress and decline
The Dark Side across company types
13            Ups and Down: Valuing Cyclical and Commodity companies
14            Mark to Market: Valuing Financial Service companies
15            Invisible Investments: Valuing firms with intangible assets
16            Volatility Rules: Valuing Emerging Market companies
17            The Octopus: Valuing Multi-business, global companies
The Finale
18            Lighting the Way: Vanquishing the Dark Side