The comprehensive guide to valuing technology companies
Projections for future revenues, earnings, cash flows, the impact of stock options, and more
5 detailed case studies cover the entire tech lifecycle: Amazon, Ariba, Cisco, Motorola, and a new IPO
Presented by one of the world\'s leading experts in valuation
State-of-the-art tools for assessing the value of any technology company

Technology companies have exploded in importance, yet investors and analysts face unprecedented challenges in valuing them. In The Dark Side of Valuation, one of the world\'s leading valuation experts reviews every approach, demonstrating exactly how to adapt traditional techniques to minimize risks and maximize returns.
Aswath Damodaran begins with an overview of the markets\' dramatic shift towards technology stocks - specifically new technology stocks. He then identifies key valuation principles and techniques, demonstrating them through five case studies that encompass the entire technology company lifecycle: Amazon, Ariba, Cisco, Motorola, and a new IPO-ready startup. Coverage includes:
Adaptation of discounted cash flow models for tech companies with limited histories, shifting business mixes, and volatile stock prices
The limitations of traditional accounting definitions in measuring technology company cash flows
Superior processes for estimating future revenues, earnings, and cash flows
Evaluation of the impact of management and employee stock options on share value and earnings multiples
An in-depth assessment of PEG and price-to sale ratios
Relative valuation: fundamentals, earnings multiples, and revenue multiples