A comprehensive guide focusing on the valuation issues for emerging markets Valuation of Companies in Emerging Economies takes a practical, step-by-step approach to valuing both public and closely held companies in emerging economies for merger or acquisition purposes. These extremely volatile markets present their own special set of challenges, which often differ from country to country. The author provides real world, best valuation practices in both developed and emerging markets and offers links to relevant Internet resources to provide CEOs, CFOs, venture capitalists, and financial analysts with the information they need to accurately value companies around the world. Luis E. Pereiro (Buenos Aires, Argentina) is a consultant who has steered several strategic change projects in multinational corporations such as Bank of America, Union Carbide, and Nissho Iwai. He is Interim Dean of the Universidad Tocuato Di Tella, Buenos Aires, as well as Director of its MBA program and Director of the Center for Entrepreneurship and Business Venturing. His numerous articles have appeared in many prestigious business journals and books. Over the years, financial professionals around the world have looked to the Wiley Finance series and its wide array of bestselling books for the knowledge, insights, and techniques that are essential to success in financial markets. As the pace of change in financial markets and instruments quickens, Wiley Finance continues to respond. With critically acclaimed books by leading thinkers on value investing, risk management, asset allocation, and many other critical subjects, the Wiley Finance series provides the financial community with information they want. Written to provide professionals and individuals with the most current thinking from the best minds in the industry, it is no wonder that the Wiley Finance series is the first and last stop for financial professionals looking to increase their financial expertise.

A comprehensive guide focusing on the valuation issues for emergingmarketsValuation of Companies in Emerging Economies takes a practicalstep-by-step approach to valuing both public and closely heldcompanies in emerging economies for merger or acquisition purposes.These extremely volatile markets present their own special set ofchallenges, which often differ from country to country. The authorprovides real world, best valuation practices in both developed andemerging markets and offers links to relevant Internet resources toprovide CEOs, CFOs, venture capitalists, and financial analystswith the information they need to accurately value companies aroundthe world.Luis E. Pereiro (Buenos Aires, Argentina) is a consultant who hassteered several strategic change projects in multinationalcorporations such as Bank of America, Union Carbide, and NisshoIwai. He is Interim Dean of the Universidad Tocuato Di TellaBuenos Aires, as well as Director of its MBA program and Directorof the Center for Entrepreneurship and Business Venturing. Hisnumerous articles have appeared in many prestigious businessjournals and books.Over the years, financial professionals around the world havelooked to the Wiley Finance series and its wide array ofbestselling books for the knowledge, insights, and techniques thatare essential to success in financial markets. As the pace ofchange in financial markets and instruments quickens, Wiley Financecontinues to respond. With critically acclaimed books by leadingthinkers on value investing, risk management, asset allocation, andmany other critical subjects, the Wiley Finance series provides thefinancial community with information they want. Written to provideprofessionals and individuals with the most current thinking fromthe best minds in the industry, it is no wonder that the WileyFinance series is the first and last stop for financialprofessionals looking to increase their financial expertise.

FOREWORD xviiCHAPTER 1 Valuing Companies in Emerging Markets: Importance and Challenges 1CHAPTER 2 Valuing Companies in Developed Markets: A Review 32CHAPTER 3 Fundamental Discounted Cashflow Valuation in Emerging Markets: Cashflows and the Cost-of-Equity Capital 92CHAPTER 4 Fundamental Discounted Cashflow Valuation in Emerging Markets: Unsystematic Risk and Synthetic Company Value 175CHAPTER 5 Valuing Companies in Emerging Markets via Real Options 222CHAPTER 6 Relative Valuation in Emerging Markets: Comparable Companies and Transactions 247CHAPTER 7 Valuing Technology Startups in Emerging Markets 319APPENDIX A Valuation Parameters in the Reference Emerging Markets 429APPENDIX B Valuation Parameters in the United States 438APPENDIX C Valuation Parameters in Argentina 449APPENDIX D Sources of Data on Comparable Companies and Transactions 462APPENDIX E Valuation Parameters of U.S. Internet Companies 464APPENDIX F Present Value of Asset/Present Value of Exercise Price 483APPENDIX G Best Valuation Practices in the United States and Argentina 488INDEX 497