Valuation (finance)

In finance, valuation is the process of determining the value of a (potential) investment, asset, or
security. Generally, there are three approaches taken, namely discounted cashflow valuation,
relative valuation, and contingent claim valuation.[1]

Valuations can be done for assets (for example, investments in marketable securities such as
companies' shares and related rights, business enterprises, or intangible assets such as patents,
data and trademarks) or for liabilities (e.g., bonds issued by a company). Valuation is a
subjective exercise, and in fact, the process of valuation itself can also affect the value of the
asset in question.

Valuations may be needed for various reasons such as investment analysis, capital budgeting,
merger and acquisition transactions, financial reporting, taxable events to determine the proper
tax liability. In a business valuation context, various techniques are used to determine the
(hypothetical) price that a third party would pay for a given company; while in a portfolio
management context, stock valuation is used by analysts to determine the price at which the
stock is fairly valued relative to its projected and historical earnings, and to thus profit from
related price movement.

Valuation overview

Common terms for the value of an asset or liability are market value, fair value, and intrinsic
value. The meanings of these terms differ. For instance, when an analyst believes a stock's
intrinsic value is greater (or less) than its market price, an analyst makes a "buy" (or "sell")
recommendation. Moreover, an asset's intrinsic value may be subject to personal opinion and
vary among analysts. The International Valuation Standards include definitions for common
bases of value and generally accepted practice procedures for valuing assets of all types.
Regardless, the valuation itself is done generally using one or more of the following
approaches:[2]

1. Absolute value models ("Intrinsic valuation") that determine the present value of an asset's
expected future cash flows. These models take two general forms: multi-period models
such as discounted cash flow models, or single-period models such as the Gordon model
(which, in fact, often "telescope" the former). These models rely on mathematics rather than
price observation. See Outline of finance § Discounted cash flow valuation.

2. Relative value models determine value based on the observation of market prices of
'comparable' assets, relative to a common variable like earnings, cashflows, book value or
sales. This result will often be used to complement / revisit the intrinsic valuation. See
Outline of finance § Relative valuation.
 3. Option pricing models, in this context, are used to value specific balance-sheet items, or the
asset itself, when these have option-like characteristics. Examples of the first type are
warrants, employee stock options, and investments with embedded options such as
callable bonds; the second type are usually real options. The most common option pricing
models employed here are the Black–Scholes-Merton models and lattice models. This
approach is sometimes referred to as contingent claim valuation, in that the value will be
contingent on some other asset. See Outline of finance § Contingent claim valuation.

Usage

In finance, valuation analysis is required for many reasons including tax assessment, wills and
estates, divorce settlements, business analysis, and basic bookkeeping and accounting. Since
the value of things fluctuates over time, valuations are as of a specific date like the end of the
accounting quarter or year. They may alternatively be mark-to-market estimates of the current
value of assets or liabilities as of this minute or this day for the purposes of managing portfolios
and associated financial risk (for example, within large financial firms including investment
banks and stockbrokers).

Some balance sheet items are much easier to value than others. Publicly traded stocks and
bonds have prices that are quoted frequently and readily available. Other assets are harder to
value. For instance, private firms that have no frequently quoted price. Additionally, financial
instruments that have prices that are partly dependent on theoretical models of one kind or
another are difficult to value and this generates valuation risk. For example, options are generally
valued using the Black–Scholes model while the liabilities of life assurance firms are valued
using the theory of present value. Intangible business assets, like goodwill and intellectual
property, are open to a wide range of value interpretations. Another intangible asset, data, is
increasingly being recognized as a valuable asset in the information economy.[3]

It is possible and conventional for financial professionals to make their own estimates of the
valuations of assets or liabilities that they are interested in. Their calculations are of various
kinds including analyses of companies that focus on price-to-book, price-to-earnings, price-to-
cash-flow and present value calculations, and analyses of bonds that focus on credit ratings,
assessments of default risk, risk premia, and levels of real interest rates. All of these approaches
may be thought of as creating estimates of value that compete for credibility with the prevailing
share or bond prices, where applicable, and may or may not result in buying or selling by market
participants. Where the valuation is for the purpose of a merger or acquisition the respective
businesses make available further detailed financial information, usually on the completion of a
non-disclosure agreement.

Valuation requires judgment and assumptions:

 There are different circumstances and purposes to value an asset (e.g., distressed firm, tax
purposes, mergers and acquisitions, financial reporting). Such differences can lead to different
valuation methods or different interpretations of the method results

All valuation models and methods have limitations (e.g., degree of complexity, relevance of
observations, mathematical form)

Model inputs can vary significantly because of necessary judgment and differing assumptions

Users of valuations benefit when key information, assumptions, and limitations are disclosed to
them. Then they can weigh the degree of reliability of the result and make their decision.

Business valuation

Businesses or fractional interests in businesses may be valued for various purposes such as
mergers and acquisitions, sale of securities, and taxable events. When correct, a valuation should
reflect the capacity of the business to match a certain market demand, as it is the only true
predictor of future cash flows. An accurate valuation of privately owned companies largely
depends on the reliability of the firm's historic financial information. Public company financial
statements are audited by Certified Public Accountants (USA), Chartered Certified Accountants
(ACCA) or Chartered Accountants (UK), and Chartered Professional Accountants (Canada) and
overseen by a government regulator. Alternatively, private firms do not have government
oversight—unless operating in a regulated industry—and are usually not required to have their
financial statements audited. Moreover, managers of private firms often prepare their financial
statements to minimize profits and, therefore, taxes. Alternatively, managers of public firms tend
to want higher profits to increase their stock price. Therefore, a firm's historic financial
information may not be accurate and can lead to over- and undervaluation. In an acquisition, a
buyer often performs due diligence to verify the seller's information.

Financial statements prepared in accordance with generally accepted accounting principles

(GAAP) show many assets based on their historic costs rather than at their current market
values. For instance, a firm's balance sheet will usually show the value of land it owns at what the
firm paid for it rather than at its current market value. But under GAAP requirements, a firm must
show the fair values (which usually approximates market value) of some types of assets such as
financial instruments that are held for sale rather than at their original cost. When a firm is
required to show some of its assets at fair value, some call this process "mark-to-market". But
reporting asset values on financial statements at fair values gives managers ample opportunity
to slant asset values upward to artificially increase profits and their stock prices. Managers may
be motivated to alter earnings upward so they can earn bonuses. Despite the risk of manager
bias, equity investors and creditors prefer to know the market values of a firm's assets—rather
than their historical costs—because current values give them better information to make
decisions.

There are commonly three pillars to valuing business entities: comparable company analyses,
discounted cash flow analysis, and precedent transaction analysis. Business valuation
credentials include the Chartered Business Valuator (CBV) offered by the CBV Institute, ASA and
CEIV from the American Society of Appraisers, and the CVA by the National Association of
Certified Valuators and Analysts.

Discounted cash flow method

This method estimates the value of an asset based on its expected future cash flows, which are
discounted to the present (i.e., the present value). This concept of discounting future money is
commonly known as the time value of money. For instance, an asset that matures and pays $1 in
one year is worth less than $1 today. The size of the discount is based on an opportunity cost of
capital and it is expressed as a percentage or discount rate.

In finance theory, the amount of the opportunity cost is based on a relation between the risk and
return of some sort of investment. Classic economic theory maintains that people are rational
and averse to risk. They, therefore, need an incentive to accept risk. The incentive in finance
comes in the form of higher expected returns after buying a risky asset. In other words, the more
risky the investment, the more return investors want from that investment. Using the same
example as above, assume the first investment opportunity is a government bond that will pay
interest of 5% per year and the principal and interest payments are guaranteed by the
government. Alternatively, the second investment opportunity is a bond issued by small company
and that bond also pays annual interest of 5%. If given a choice between the two bonds, virtually
all investors would buy the government bond rather than the small-firm bond because the first is
less risky while paying the same interest rate as the riskier second bond. In this case, an investor
has no incentive to buy the riskier second bond. Furthermore, in order to attract capital from
investors, the small firm issuing the second bond must pay an interest rate higher than 5% that
the government bond pays. Otherwise, no investor is likely to buy that bond and, therefore, the
firm will be unable to raise capital. But by offering to pay an interest rate more than 5% the firm
gives investors an incentive to buy a riskier bond.

For a valuation using the discounted cash flow method, one first estimates the future cash flows
from the investment and then estimates a reasonable discount rate after considering the
riskiness of those cash flows and interest rates in the capital markets. Next, one makes a
calculation to compute the present value of the future cash flows.
Guideline companies method

This method determines the value of a firm by observing the prices of similar companies (called
"guideline companies") that sold in the market. Those sales could be shares of stock or sales of
entire firms. The observed prices serve as valuation benchmarks. From the prices, one calculates
price multiples such as the price-to-earnings or price-to-book ratios—one or more of which used
to value the firm. For example, the average price-to-earnings multiple of the guideline companies
is applied to the subject firm's earnings to estimate its value.

Many price multiples can be calculated. Most are based on a financial statement element such
as a firm's earnings (price-to-earnings) or book value (price-to-book value) but multiples can be
based on other factors such as price-per-subscriber.

Net asset value method

The third-most common method of estimating the value of a company looks to the assets and
liabilities of the business. At a minimum, a solvent company could shut down operations, sell off
the assets, and pay the creditors. Any cash that would remain establishes a floor value for the
company. This method is known as the net asset value or cost method. In general the discounted
cash flows of a well-performing company exceed this floor value. Some companies, however, are
worth more "dead than alive", like weakly performing companies that own many tangible assets.
This method can also be used to value heterogeneous portfolios of investments, as well as
nonprofits, for which discounted cash flow analysis is not relevant. The valuation premise
normally used is that of an orderly liquidation of the assets, although some valuation scenarios
(e.g., purchase price allocation) imply an "in-use" valuation such as depreciated replacement cost
new. This method is most appropriate in situations where there are no significant intangible
assets, or when a company is voluntarily liquidating its assets as a result of ceased operations.
(https://blog.johannessonholding.se/2021/07/08/substance-valuation-method/)

An alternative approach to the net asset value method is the excess earnings method. (This
method was first described in the U.S. Internal Revenue Service's Appeals and Review
Memorandum 34, and later refined by Revenue Ruling 68-609 (https://users.wfu.edu/palmitar/La
w&Valuation/chapter%205/Documents/RevRul68-609.html) .) The excess earnings method has
the appraiser identify the value of tangible assets, estimate an appropriate return on those
tangible assets, and subtract that return from the total return for the business, leaving the
"excess" return, which is presumed to come from the intangible assets. An appropriate
capitalization rate is applied to the excess return, resulting in the value of those intangible
assets. That value is added to the value of the tangible assets and any non-operating assets, and
the total is the value estimate for the business as a whole. See Clean surplus accounting,
Residual income valuation.

Specialised cases

The approaches to valuation outlined above, are generic and will be modified for the unique
positioning and characteristics [4] of the business in question. [5] In the below cases, however,
more specific valuation-practices have developed [6] within the investment industry. To these,
more than elsewhere, real options valuation may be applied; [7] see Business valuation § Option
pricing approaches.

Valuation of a suffering company

Investors in a suffering company, or in other "distressed securities", may intend (i) to restructure
the business, with the valuation reflecting its potential thereafter, or (ii) to purchase the company
- or its debt - at a discount, as part of an Investment Strategy aimed at realizing a profit on
recovery.

Preliminary to the valuation, the financial statements are initially recast, to "better reflect the
firm's indebtedness, financing costs and recurring earnings".[8] Here adjustments are made to
working capital, deferred capital expenditures, cost of goods sold, non-recurring professional
fees and costs, above- or below-market leases, excess salaries in the case of private companies,
and certain non-operating income/expense items.[9]

The valuation is built on this base, with any of the standard market-, income-, or asset-based
approaches employed. Often these are used in combination, providing a "triangulation" or
(weighted) average. Particularly in the second case above, the company may be valued using real
options analysis, serving to complement (or sometimes replace) this standard value; see
Business valuation § Option pricing approaches and Merton model.

As required, various adjustments are then made to this result, so as to reflect characteristics of
the firm external to its profitability and cash flow. These adjustments consider any lack of
marketability resulting in a discount, and re the stake in question, any control premium or lack of
control discount. Balance sheet items external to the valuation, but due to the new owners, are
similarly recognized; these include excess (or restricted) cash, and other non-operating assets
and liabilities.
Valuation of a startup company

Startup companies such as Uber, which was valued at $50 billion in early 2015, are assigned
post-money valuations based on the price at which their most recent investor put money into the
company. The price reflects what investors, for the most part venture capital firms, are willing to
pay for a share of the firm. They are not listed on any stock market, nor is the valuation based on
their assets or profits, but on their potential for success, growth, and eventually, possible
profits.[10] Many startup companies use internal growth factors to show their potential growth
which may attribute to their valuation. The professional investors who fund startups are experts,
but hardly infallible, see Dot-com bubble.[11] Valuation using discounted cash flows discusses
various considerations here.

The valuation of early-stage startups can be more nuanced due to their lack of established track
records. One common approach is using comparative valuations, although this method can be
less accurate given the uniqueness of each startup.[12] Some methods adjust the average pre-
money valuation of pre-revenue startups based on various attributes within the same market.[13]
Average pre-money valuations in a particular region or sector, obtained from recent market deals,
can also serve as reference points.[14] During Series A funding rounds, the typical valuation for
startups is reported to be between $10 million to $15 million[15]

Valuation of intangible assets

Valuation models can be used to value intangible assets such as for patent valuation, but also in
copyrights, software, trade secrets, and customer relationships.[16] As economies are becoming
increasingly informational, it is recognized that there is a need for new methods to value data,
another intangible asset.

Valuations here are often necessary both for financial reporting and intellectual property
transactions. They are also inherent in securities analysis - listed and private - in cases where
analysts must estimate the incremental contribution of patents (etc) to equity value; see next
paragraph. Since few sales of benchmark intangible assets can ever be observed, one often
values these sorts of assets using either a present value model, or by estimating the cost of
recreating the asset in question. In some cases, [17] [18] option-based techniques or decision trees
may be applied. Regardless of the method, the process is often time-consuming and costly. If
required, stock markets can give an indirect estimate of a corporation's intangible asset value:
this can be reckoned as the difference between its market capitalisation and its book value
(including only hard assets), i.e. effectively its goodwill; see also PVGO.

As regards listed equity, the above techniques are most often applied in the biotech-, life
sciences- and pharmaceutical sectors [19] [20] [21] [18] (see List of largest biotechnology and
pharmaceutical companies). These businesses are involved in research and development (R&D),
and testing, that typically takes years to complete, and where the new product may ultimately not
be approved[18] (see Contingent value rights). Industry specialists thus apply the above
techniques - and here especially rNPV - to the pipeline of products under development, and, at the
same time,[16] also estimate the impact on existing revenue streams due to expiring patents. For
relative valuation,[19] a specialized ratio is R&D spend as a percentage of sales. Similar analysis
may be applied to options on films re the valuation of film studios.

Valuation of mining projects

In mining, valuation is the process of determining the value or worth of a mining property - i.e. as
distinct from a listed mining corporate. Mining valuations are sometimes required for IPOs,
fairness opinions, litigation, mergers and acquisitions, and shareholder-related matters. In
valuing a mining project or mining property, fair market value is the standard of value to be used.
In general,[22] this result will be a function of the property's "reserve" - the estimated size and
grade of the deposit in question - and the complexity and costs of extracting this.[23] [24]

CIMVal (http://web.cim.org/standards/documents/Block487_Doc69.pdf) generally applied by the

Toronto Stock Exchange, is widely recognized as a "standard" for the valuation of mining
projects. (CIMVal: Canadian Institute of Mining, Metallurgy and Petroleum on Valuation of
Mineral Properties [25]) The Australasian equivalent is VALMIN (https://www.valmin.org) ; the
Southern African is SAMVAL. These standards stress the use of the cost approach, market
approach, and the income approach, depending on the stage of development of the mining
property or project; see [26] for further discussion and context. Real Options analysis [27] [28] is
sometimes [22] [26] [27] used when there is a need to evaluate the project under different scenarios
from inception.

Analyzing listed mining corporates (and other resource companies) is also specialized,[23] as the
valuation requires a good understanding of the company's overall assets, its operational
business model as well as key market drivers,[29] and an understanding of that sector of the
stock market.[23] Re the latter, a distinction is usually made based on size and financial
capabilities; see Mining § Corporate classifications.

The price of a "Junior" mining stock, typically having one asset, will at its early stages be linked
to the result of its feasibility study; later, the price will be a function of that mine's viability and
value, largely applying the above techniques.

A "Major", on the other hand, has numerous properties, and the contents of any single deposit
will impact stock value in a limited fashion; this due to diversification, access to funding, and,
also, since the share price inheres goodwill. Typically, then, the exposure is more to the market
value of each mineral in the portfolio, than to the individual properties.
Valuing financial services firms

There are two main difficulties with valuing financial services firms. [30] [31] [32] [33] The first is that
the cash flows to a financial service firm cannot be easily estimated, since capital expenditures,
working capital and debt are not clearly defined: "debt for a financial service firm is more akin to
raw material than to a source of capital; the notion of cost of capital and enterprise value may be
meaningless as a consequence."[30] (See related discussion re. the risk management of financial-
vs non-financial firms.) The second is that these firms operate under a highly regulated
environment, and valuation assumptions (and model outputs) must incorporate regulatory limits,
at least as "bounds".[33]

The approach taken for a DCF valuation, is to then "remove" debt from the valuation, by
discounting at the cost of equity either free cash flow to equity (net income less any
reinvestment in regulatory capital) or excess return;[34] a dividend based valuation is often
employed. This is in contrast to the more typical approach of discounting free cash flow to the
Firm where EBITDA less capital expenditures and working capital is discounted at the weighted
average cost of capital, which incorporates the cost of debt.

For a multiple based valuation, similarly, price to earnings is preferred to EV/EBITDA. Here, there
are also industry-specific measures used to compare between investments and within sub-
sectors; this, once normalized by market cap (or other appropriate result), and recognizing
regulatory differences:

Insurance companies: embedded value and actuarial reserves

Banking sector: net interest margin and provision for credit losses

Wealth- and investment management firms: assets under management

Investment banks: price to tangible book value and return on tangible equity.

Mismarking

Mismarking in securities valuation takes place when the value that is assigned to securities does
not reflect what the securities are actually worth, due to intentional fraudulent
mispricing.[35][36][37]

Mismarking misleads investors and fund executives about how much the securities in a
securities portfolio managed by a trader are worth (the securities' net asset value, or NAV), and
thus misrepresents performance.[38][39][40]

When a rogue trader engages in mismarking, it allows him to obtain a higher bonus from the
financial firm for which he works, where his bonus is calculated by the performance of the
securities portfolio that he is managing.[38][39]

See also

Appraisal (disambiguation)

Asset price inflation

Business valuation

Business valuation standard

Control premium

Depreciation

Earnings response coefficient

Efficient-market hypothesis

Enterprise value

Equity value

Film finance

Fundamental analysis

Intellectual property valuation

Intermediated research

Investment management

Lipper average

Market-based valuation

Minority discount

Paper valuation

Patent valuation

PEG ratio

Present value

Present value of growth opportunities

Price discovery

Pricing

Real options valuation

 Real estate appraisal

Standard cost accounting

Stock valuation

Sum-of-the-parts analysis

Terminal value

Undervalued stock

Valuation risk

Specific pricing models

Capital asset pricing model

Arbitrage pricing theory

Black–Scholes (for options)

Fuzzy pay-off method for real option valuation

Single-index model

Markov switching multifractal

Multiple factor models

References

1. Damodaran, Aswath (31 January 2002). Investment Valuation: Tools and Techniques for
Determining the Value of Any Asset (https://books.google.com/books?id=sLQhYjndgwEC)
(Second ed.). John Wiley & Sons. pp. 9, 11. ISBN 978-0-471-41490-2. Archived (https://web.
archive.org/web/20230327060943/https://books.google.com/books?id=sLQhYjndgwEC)
from the original on 27 March 2023. Retrieved 1 March 2023.

2. Aswath Damodaran (2012). An Introduction to Valuation (http://people.stern.nyu.edu/adamo

dar/pdfiles/eqnotes/ValIntro.pdf) Archived (https://web.archive.org/web/2021070803140
9/http://people.stern.nyu.edu/adamodar/pdfiles/eqnotes/ValIntro.pdf) 2021-07-08 at the
Wayback Machine. NYU teaching note

3. "The Value of Data" (https://www.weforum.org/agenda/2017/09/the-value-of-data/) . 22

September 2017. Archived (https://web.archive.org/web/20201109034435/https://www.we
forum.org/agenda/2017/09/the-value-of-data) from the original on 9 November 2020.
Retrieved 6 November 2020.
 4. Aswath Damodaran (2014). Numbers and Narrative: Modeling, Story Telling and Investing (h
ttps://web.archive.org/web/20140712020722/https://aswathdamodaran.blogspot.com/201
4/06/numbers-and-narrative-modeling-story.html)

5. Aswath Damodaran (N.D.). Beyond Inputs: Choosing the right model (https://pages.stern.ny
u.edu/~adamodar/pdfiles/eqnotes/model.pdf)

6. "International Private Equity and Venture Capital Valuation Guidelines" (https://www.privatee

quityvaluation.com/Portals/0/Documents/Guidelines/IPEV%20Valuation%20Guidelines%20
-%20December%202022.pdf) (PDF). IPEV. 2022.

7. Aswath Damodaran. Option Pricing Applications in Valuation (http://people.stern.nyu.edu/a

damodar/pdfiles/eqnotes/optequity.pdf) Archived (https://web.archive.org/web/2012091
6122726/http://people.stern.nyu.edu/adamodar/pdfiles/eqnotes/optequity.pdf) 2012-09-
16 at the Wayback Machine

8. George Batta, Ananda Ganguly, Joshua Rosett (2012). Financial statement recasting and
credit risk assessment (https://onlinelibrary.wiley.com/doi/10.1111/acfi.12002) Archived
(https://web.archive.org/web/20220518164028/https://onlinelibrary.wiley.com/doi/10.111
1/acfi.12002) 2022-05-18 at the Wayback Machine, Accounting and Finance. Volume54,
Issue1.

9. Joseph Swanson and Peter Marshall, Houlihan Lokey and Lyndon Norley, Kirkland & Ellis
International LLP (2008). A Practitioner's Guide to Restructuring, Andrew Miller's Valuation of
a Distressed Company p. 24. ISBN 978-1-905121-31-1

10. Cook, Andrew. "Investing in Potential" (http://five23.io/valuations/investing-in-potential/) .

five23.io. Archived (https://web.archive.org/web/20170316032713/http://five23.io/valuatio
ns/investing-in-potential/) from the original on 2017-03-16. Retrieved 2017-03-15.

11. Andrew Ross Sorkin (May 11, 2015). "Main Street Portfolios Are Investing in Unicorns" (http
s://www.nytimes.com/2015/05/12/business/dealbook/main-street-portfolios-are-investing-
in-unicorns.html) (Dealbook blog). The New York Times. Archived (https://web.archive.org/
web/20150602191923/http://www.nytimes.com/2015/05/12/business/dealbook/main-stre
et-portfolios-are-investing-in-unicorns.html) from the original on June 2, 2015. Retrieved
May 12, 2015. "There is no meaningful stock market for these shares. Their values are
based on what a small handful of investors—usually venture capital firms, private equity
firms or other corporations—are willing to pay for a stake."

12. "Determining Seed-Round Valuation for Startups | Silicon Valley Bank" (https://www.svb.co
m/startup-insights/raising-capital/determining-seed-startup-valuation) . www.svb.com.
Retrieved 2023-10-21.
13. "How to evaluate startups: methods for early & pre-revenue stage" (https://blog.innmind.co
m/how-to-calculate-startup-valuation-principal-methods-for-early-pre-revenue-stage/) .
InnMind: Blog for Web3 Startup Founders. 2020-08-31. Retrieved 2023-10-21.

14. "How do you use the scorecard method to value your startup?" (https://www.linkedin.com/a
dvice/3/how-do-you-use-scorecard-method-value-your-startup) . www.linkedin.com.
Retrieved 2023-10-21.

15. "Series A, B, C, D, and E Funding: How It Works" (https://www.startups.com/library/expert-ad

vice/series-funding-a-b-c-d-e) . www.startups.com. Retrieved 2023-10-21.

16. Aswath Damodaran (N.D.). The Value of Intangibles (http://people.stern.nyu.edu/adamodar/

pdfiles/ovhds/dam2ed/intangibles.pdf) Archived (https://web.archive.org/web/20220119
201609/http://people.stern.nyu.edu/adamodar/pdfiles/ovhds/dam2ed/intangibles.pdf)
2022-01-19 at the Wayback Machine

17. Aswath Damodaran (N.D.), A decision tree valuation of a pharmaceutical company with one
drug in the FDA pipeline (http://people.stern.nyu.edu/adamodar/podcasts/valfall16/valsess
ion22.pdf) Archived (https://web.archive.org/web/20220119185521/http://people.stern.n
yu.edu/adamodar/podcasts/valfall16/valsession22.pdf) 2022-01-19 at the Wayback
Machine

18. Kellogg, D., & Charnes, J. M. (2000). Real-Options Valuation for a Biotechnology Company (h
ttps://www.tandfonline.com/doi/abs/10.2469/faj.v56.n3.2362) . Financial Analysts
Journal, 56(3), 76–84.

19. T. Segal (2020). Biotech vs. Pharmaceuticals (https://www.investopedia.com/ask/answers/

033115/what-difference-between-biotechnology-company-and-pharmaceutical-company.as
p) Archived (https://web.archive.org/web/20210124124328/https://www.investopedia.co
m/ask/answers/033115/what-difference-between-biotechnology-company-and-pharmaceut
ical-company.asp) 2021-01-24 at the Wayback Machine, investopedia.com

20. Aswath Damodaran (N.D.), Valuation and price in the drug business (http://people.stern.nyu.
edu/adamodar/pdfiles/country/DrugValuationforEMBA.pdf) Archived (https://web.archiv
e.org/web/20220119180547/http://people.stern.nyu.edu/adamodar/pdfiles/country/DrugV
aluationforEMBA.pdf) 2022-01-19 at the Wayback Machine

21. Brian DeChesare (N.D.), Biotech Equity Research (https://www.mergersandinquisitions.co

m/biotech-equity-research/) Archived (https://web.archive.org/web/20210902221919/htt
ps://www.mergersandinquisitions.com/biotech-equity-research/) 2021-09-02 at the
Wayback Machine

22. Queen's University (2010). Project Evaluation Methods (https://minewiki.engineering.queens

u.ca/mediawiki/index.php/Project_Evaluation_Methods)
23. Andrew Beattie (2020). A Beginner's Guide to Mining Stocks (https://www.investopedia.co
m/articles/basics/12/beginners-guide-mining-stocks.asp#valuing-major-and-junior-mining-
stocks) Archived (https://web.archive.org/web/20210129182739/https://www.investoped
ia.com/articles/basics/12/beginners-guide-mining-stocks.asp#valuing-major-and-junior-mi
ning-stocks) 2021-01-29 at the Wayback Machine

24. Queen's University (2014). Project economics (https://minewiki.engineering.queensu.ca/me

diawiki/index.php/Project_economics) Archived (https://web.archive.org/web/202303080
90118/https://minewiki.engineering.queensu.ca/mediawiki/index.php/Project_economic
s) 2023-03-08 at the Wayback Machine, minewiki.engineering.queensu.ca

25. "Standards and Guidelines for Valuation of Mineral Properties. Special committee of the
Canadian Institute Of Mining, Metallurgy and Petroleum on Valuation of Mineral Properties
(CIMVAL), February 2003" (https://web.archive.org/web/20131212182418/http://web.cim.o
rg/standards/documents/Block487_Doc69.pdf) (PDF). Archived from the original (http://
web.cim.org/standards/documents/Block487_Doc69.pdf) (PDF) on 2013-12-12. Retrieved
2013-12-05.

26. E.V. Lilford and R.C.A. Minnitt (2005). A comparative study of valuation methodologies for
mineral developments (https://www.saimm.co.za/Journal/v105n01p029.pdf) Archived (ht
tps://web.archive.org/web/20210228124053/https://www.saimm.co.za/Journal/v105n01p
029.pdf) 2021-02-28 at the Wayback Machine, The Journal of The South African Institute of
Mining and Metallurgy, Jan. 2005

27. Shafiee, S and Abbate, N. (2012). Now, this is the Time for Mining Companies to Choose -
Real Option Valuation or Discount Cash Flow (https://www.ausimm.com/publications/confe
rence-proceedings/project-evaluation-2012-/now-this-is-the-time-for-mining-companies-to-c
hoose---real-option-valuation-or-discount-cash-flow) . Australasian Institute of Mining and
Metallurgy

28. Rudolf Zdravlje (2011). Real Options Analysis of Mining Projects (https://core.ac.uk/display/
56378814)

29. "Inside the world of the mining analyst" (https://www.investec.com/en_za/focus/beyond-we

alth/inside-the-world-of-the-mining-analyst.html) . Archived (https://web.archive.org/web/2
0210228193722/https://www.investec.com/en_za/focus/beyond-wealth/inside-the-world-o
f-the-mining-analyst.html) from the original on 2021-02-28. Retrieved 2021-02-12.

30. Aswath Damodaran (2009). Valuing Financial Service Firms (http://people.stern.nyu.edu/ada

modar/pdfiles/papers/finfirm09.pdf) Archived (https://web.archive.org/web/2019102019
0955/http://people.stern.nyu.edu/adamodar/pdfiles/papers/finfirm09.pdf) 2019-10-20 at
the Wayback Machine, Stern, NYU
31. Doron Nissim (2010).Analysis and Valuation of Insurance Companies (http://www.columbia.e
du/~dn75/Analysis%20and%20Valuation%20of%20Insurance%20Companies%20-%20Final.
pdf) Archived (https://web.archive.org/web/20191020201443/http://www.columbia.edu/
~dn75/Analysis%20and%20Valuation%20of%20Insurance%20Companies%20-%20Final.pd
f) 2019-10-20 at the Wayback Machine, Columbia Business School

32. Oleg Deev (2011). "Methods of Bank Valuation: A Critical Overview" (https://journals.muni.c
z/fai/article/view/7820) Archived (https://web.archive.org/web/20230614094138/https://
journals.muni.cz/fai/article/view/7820) 2023-06-14 at the Wayback Machine. Financial
Assets and Investing. Vol.2, No.3

33. Yann Le Fur, et. al. (2022). "Putting a value on banks" (https://www.vernimmen.com/Read/A
rticles_on_financials/Putting_a_value_on_banks.html?iframe)

34. See e.g. eqexret.xls (https://pages.stern.nyu.edu/~adamodar/pc/eqexret.xls) by Prof.

Aswath Damodaran

35. "1QIS 2 - Operational Risk Loss Data – 4 May 2001," (https://www.bis.org/bcbs/qisoprisknot

e.pdf) Archived (https://web.archive.org/web/20210301172701/https://www.bis.org/bcb
s/qisoprisknote.pdf) 1 March 2021 at the Wayback Machine Bank of International
Settlements.

36. Daniel Strauss (November 29, 2019). "Morgan Stanley reportedly fires or places on leave at
least 4 traders while investigating millions in hidden losses | Markets Insider" (https://marke
ts.businessinsider.com/news/stocks/morgan-stanley-fires-places-on-leave-four-traders-mis
marking-securities-2019-11-1028727080) . Business Insider. Archived (https://web.archive.
org/web/20210415185903/https://markets.businessinsider.com/news/stocks/morgan-sta
nley-fires-places-on-leave-four-traders-mismarking-securities-2019-11-1028727080) from
the original on 2021-04-15. Retrieved 2020-11-15.

37. Eugene Ingoglia; Todd Fishman; Mark Daniels (April 22, 2020). "Amid falling markets,
valuation challenges and mis-marking fraud risks rise" (https://www.aoinvestigationsinsigh
t.com/amid-falling-markets-valuation-challenges-and-mis-marking-fraud-risks-rise/) .
Investigations Insight. Archived (https://web.archive.org/web/20200928000720/http://www.
aoinvestigationsinsight.com/amid-falling-markets-valuation-challenges-and-mis-marking-fra
ud-risks-rise/) from the original on September 28, 2020. Retrieved November 15, 2020.

38. Aziz Abdel-Qader (January 31, 2020). "Morgan Stanley Names Two New Heads for FX
Options Desk; Silverman and Jeurissen are replacing Thiago Melzer, who was fired in
November amid allegations of mismarking securities" (https://www.financemagnates.com/
executives/moves/morgan-stanley-names-two-new-heads-for-fx-options-desk/) . Finance
Magnates. Archived (https://web.archive.org/web/20210226024902/https://www.financem
agnates.com/executives/moves/morgan-stanley-names-two-new-heads-for-fx-options-des
k/) from the original on February 26, 2021. Retrieved November 15, 2020.
39. George J. Benston (July–August 2006). "Fair-value accounting: A cautionary tale from
Enron". Journal of Accounting and Public Policy. 25 (4): 465–484.
doi:10.1016/j.jaccpubpol.2006.05.003 (https://doi.org/10.1016%2Fj.jaccpubpol.2006.05.00
3) .

40. Kent Oz (2009). "Independent Fund Administrators As A Solution for Hedge Fund Fraud," (htt
ps://ir.lawnet.fordham.edu/cgi/viewcontent.cgi?article=1344&context=jcfl) Archived (http
s://web.archive.org/web/20210303001324/https://ir.lawnet.fordham.edu/cgi/viewcontent.c
gi?article=1344&context=jcfl) 2021-03-03 at the Wayback Machine Fordham Journal of
Corporate & Financial Law.