Table of Contents

• Preface
• Acknowledgments
• 1. Overview of Valuation
• PART I: PROJECT ANALYSIS USING DISCOUNTED CASH FLOW (DCF)
• 2. Forecasting and Valuing Cash Flows
• 3.Project Risk Analysis
• PART II: COST OF CAPITAL
• 4. Estimating a Firm's Cost of Capital
• 5. Estimating Required Rates of Return for Projects
• PART III: FINANCIAL STATEMENTS AND VALUATION
• 6. Forecasting Financial Performance
• 7. Earnings Dilution, Incentive Compensation, and Project Selection
• PART IV: ENTERPRISE VALUATION
• 8. Relative Valuation Using Market Comparables
• 9. Enterprise Valuation
• 10. Valuation in a Private Equity Setting
• PART V : FUTURES, OPTIONS, AND THE VALUATION OF REAL INVESTMENTS
• 11. Using Futures and Options to Value Real Investments
• 12. Managerial Flexibility and Project Valuation: Real Options
• 13. Strategic Options: Evaluating Strategic Opportunities
• Epilogue
• Index

About the Author

Sheridan Titman holds the McAllister Centennial Chair in Financial Services at the University of Texas. He has a B.S. from the University of Colorado and an M.S. and Ph.D. from Carnegie Mellon University. Prior to joining the faculty at the University of Texas, Professor Titman was a Professor at UCLA, the Hong Kong University of Science and Technology, and Boston College and spent the 1988-89 academic year in Washington, D.C., as the special assistant to the Assistant Secretary of the Treasury for Economic Policy. In addition, he has consulted for a variety of financial institutions and corporations.

John Martin holds the Carr P. Collins Chair in Finance in the Hankamer School of Business at Baylor University, where he teaches in the Baylor EMBA programs. Over his career, he has published more than 50 articles in the leading finance journals and served in a number of editorial positions, including the co-editorship of the FMA Survey and Synthesis Series for the Oxford University Press. In addition, he has coauthored the following books: Financial Management, 12th edition (Prentice Hall Publishing Company); Foundations of Finance, 8th edition (Prentice Hall Publishing Company); Financial Analysis (McGraw-Hill Publishing Company); The Theory of Finance (Dryden Press); and Value Based Management (Harvard Business School Press/Oxford University Press).