Dark Side Valuation (3e) : 9780134854106

Dark Side Valuation (3e)

Published by
Pearson Higher Ed USA
In stock
Title type
Title type

Renowned valuation expert Aswath Damodaran reviews the core tools of valuation, examines today’s most difficult estimation questions and issues, and then systematically addresses the valuation challenges that arise throughout a firm’s lifecycle in The Dark Side of Valuation: Valuing Young, Distressed and Complex Businesses.


In this thoroughly revised edition, the author looks at how best to deal with low interest rates, volatile equity risk premiums and political risk in valuation.


Readers will gain insight into:

  • Overcoming the temptation to use unrealistic or simplistic valuation methods
  • Risk-free rates, risk premiums and other macroeconomic assumptions
  • Intelligent analysis for angel and early venture capital investing
  • Projecting the impact of regulatory changes
  • The stages of the corporate lifecycle
  • Valuing financial services and commodities companies

Damodaran’s insights will be indispensable to everyone involved in valuation: financial professionals, investors, M&A specialists, and entrepreneurs alike.

Table of contents
  1. 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
  6. The Dark Side of Macro Inputs
  7. A Shaky Base: A Risky Risk free Rate
  8. Risky Ventures: Assessing the Price of Risk
  9. Macro Matters: The Real Economy
  10. The Dark Side across the Life Cycle
  11. Baby Steps - Valuing start-ups
  12. Off to School – Valuing young companies
  13. Shooting Stars - Valuing growth companies
  14. Not so staid - Valuing mature companies
  15. The inevitable end - Valuing companies in distress and decline
  16. The Dark Side across company types
  17. Ups and Down: Valuing Cyclical and Commodity companies
  18. Mark to Market: Valuing Financial Service companies
  19. Invisible Investments: Valuing firms with intangible assets
  20. Volatility Rules: Valuing Emerging Market companies
  21. The Octopus: Valuing Multi-business, global companies
  22. Puzzle Palace: Valuing the Unusual
  23. The Finale
  24. Lighting the Way: Vanquishing the Dark Side
New to this edition
1. Updated or new examples in every chapter
2. Two new chapters, one on valuing idea/concept companies at the start of the life cycle section and one on valuing unusual businesses in the last section.
3. Discussions of how to deal with negative or very low interest rates and frontier market valuations.
4. Online support with YouTube videos, blog posts and additional material for the book.
Author biography
Aswath Damodaran is Professor of Finance at the Stern School of Business at New York University. He teaches the corporate finance and equity valuation courses in the MBA program. He received his MBA and PhD from the University of California at Los Angeles. He has written several books on corporate finance, valuation, and portfolio management. He has been at NYU since 1986 and has received the Stern School of Business Excellence in Teaching Award (awarded by the graduating class) eight times. He was profiled in BusinessWeek as one of the top twelve business school professors in the United States in 1994 and was chosen the most popular business school professor in 2012.