Value Sweep

The stock market routinely values corporate growth opportunities. But inside companies, managers struggle to quantify the value of growth initiatives and to align internal valuations with those in the financial markets. Value Sweep is the first book to lay out a simple and transparent valuation method that works for the varied growth opportunities facing the modern corporation.

Based on extensive research and years of frontline work within corporations, valuation and strategy expert Martha Amram takes readers beyond the numbers, providing a new lens and a better vocabulary for envisioning, understanding, and valuing growth across a wide sweep of assets-from mature businesses to those being reshaped by intellectual property and e-commerce.

Rigorous, yet easy to use, this innovative approach allows managers to place diverse growth projects on a single "map" of value. This comparison enables them to better direct resources and attention to the most valuable projects.

Value Sweep tackles the hard valuation issues and shows:

• When to use traditional valuation methods, such as Discounted Cash Flow, and when to use more innovative methods such as decision analysis or real options
• How to quickly value growth opportunities and compare the result to sensible valuation benchmarks
• Why venture capital valuations are so sensitive to fluctuations in the stock market
• Why it is difficult to value intellectual property and how to use approximate valuation results in negotiations
• Why the simplest valuation methods work best for investments in information technology
• How to roll up project-level valuations into a corporate growth engine

Providing investors, analysts, and managers with a much-needed single frame of reference for valuing Fortune 500 firms and newer Nasdaq arrivals alike, this insightful book skillfully integrates the once-elusive process of valuation into everyday business life.

Contents

• One map of value
• The look and feel of growth opportunities

• Expanding the toolkit
• Discounted cash flow : valuing sustainable growth
• Real options : valuing expansion opportunities
• Decision analysis : designing growth opportunities

• Valuing growth
• Tailored valuation templates
• Valuing staged growth
• Growth value benchmarks from venture capital
• A close look at market-priced risk

• Across the sweep of value
• Showing values to Wall Street : film studios
• Valuing more than the idea : intellectual property
• Selecting the investment : information technology
• Creating the credible growth engine

• Epilogue
• Leading growth
• Marking a spot on the map of value