Chapter 1. Overview of Valuation PART I: Project Analysis Using Discounted Cash Flow (DCF) Chapter 2. Forecasting and Valuing Cash Flows Chapter 3. Project Risk Analysis PART II: Cost of Capital Chapter 4. Estimating a Firm’s Cost of Capital Chapter 5. Estimating Required Rates of Return for Projects PART III:  Financial Statements and Valuation Chapter 6. Forecasting Financial Performance Chapter 7.  Earnings Dilution, Incentive Compensation, and Project Selection PART IV:  Enterprise Valuation Chapter 8. Relative Valuation Using Market Comparables   Chapter 9.  Enterprise Valuation Chapter 10.  Valuation in a Private Equity Setting PART V:  Futures, Options, and the Valuation of Real Investments Chapter 11. Using Futures and Options to Value Real Investments Chapter 12. Managerial Flexibility and Project Valuation: Real Options

For upper-division undergraduate and MBA students as well as business professionals.Seeing the economic realities of the modern corporation through an integrated approach.Titman/Martin presents an integrated approach to both project and enterprise valuation, showing readers the economic realities that today’s modern corporations face. This text also goes beyond standard DCF analysis by including additional valuation methods that are commonly used in practice, such as comparables, simulations, and real options.The second edition includes an increased emphasis on enterprise valuation, a new chapter on financial forecasting, and enhanced examples and illustrations.Gaining a thorough understanding and applying it in a practical setting. Getting involved in the material: End-of-Chapter Problems and Mini-Cases. Each chapter contains a generous number of problems designed to help students review the concepts and solidify their overall understanding. These practical exercises range in difficulty level from brief problems illustrating a single point or mini-cases in selected chapters to moderate-length case studies with multiple parts that delve more deeply into the issues.Helping students gain a deeper understanding of valuation skills: Special Features. Industry Insights delve more deeply into how the tools developed in the book are used in practice.Technical Insights provide further explanations of mathematics, methodologies, and analytical tools.Behavioral Insights focus on irrational choices and biases that impact how investment choices are made in practice.Practitioner Insights provide perspective from a broad spectrum of professionals who use the various valuation methodologies discussed in the text.Did you know? side comments highlight interesting, relevant financial lore.Providing context: Realistic Assumptions. Titman’s examples are grounded in practical settings to give a sense of realism to the material. Gaining spreadsheet usage and support. The majority of the end-of-chapter problems require the use of spreadsheet software. To help students use and create spreadsheets for these problems templates are provided on the Website accompanying the book at www.pearsonhighered.com/titman_martin.Using simulation software: The Monte Carlo Simulation. Through the Crystal Ball software, which is included with this text, students will have access to the Monte Carlo simulation. These simulations automatically calculate thousands of different “what if” cases, saving the inputs and results of each calculation as individual scenarios. Analysis of these scenarios reveals the range of possible outcomes, their probability of occurring, which input has the most effect on the model, and where students should focus their efforts.NEW! Staying up-to-date on the latest information in the field: The new feature, Common Valuation Mistakes, presents the valuation errors that are commonly made from ignoring the effects of investment flexibility. A brand new Chapter 6 focuses on the use of accounting financial statements to forecast a firm’s future financial performance.

NEW! Staying up-to-date on the latest information in the field: The new feature, Common Valuation Mistakes, presents the valuation errors that are commonly made from ignoring the effects of investment flexibility. A brand new Chapter 6 focuses on the use of accounting financial statements to forecast a firm’s future financial performance.