Kettell Valuation of Internet and Technology Stocks

Implications for Investment Analysis
1. Auflage 2002
ISBN: 978-0-08-052038-4
Verlag: Elsevier Science & Techn.
Format: PDF
Kopierschutz: 1 - PDF Watermark

E-Book, Englisch, 209 Seiten, Web PDF

Valuation of Internet and Technology Stocks offers practical information on how to value internet and high-tech companies more accurately. The book reviews previous practice, highlights the deficiencies in existing stock market techniques, and shows how to modify or replace them. It also demonstrates how the New Economics necessitates new forms of investment analysis. This book presents new ways of looking, researching and valuing internet and high-tech companies. It explains why there has been a high correlation between high loss companies and a rocketing stock price. It questions whether there is still a place for discounted cash flows when there is no cash flow to discount. It also considers what new methods are available to value super growth companies and whether these methods are any better than existing techniques. Chapters deal with a wide range of topics including: where technology/internet stocks fit in a new economy; how you value traditional common stocks; application of the Porter model to the valuation of technology/internet stocks; problems with applying traditional valuation models for technology/internet stocks; derivative markets and real options; and the lessons that can be learned by investors from the year 2000 collapse of technology/internet stocks. This text will be of interest to traders, investment managers, institutional investors, plan managers, and finance professionals.* Investigates why there has been a high correlation between high loss companies and a rocketing stock price
* Questions whether there is still a place for discounted cash flows when there is no cash flow to discount
* Considers what new methods are available to value super growth companies and whether these methods are any better than existing techniques

Autoren/Hrsg.

Kettell, Brian

Inhaltsverzeichnis

1;Cover;1
2;Contents;6
3;Preface: The collapse of Internet and technology stocks;12
4;Chapter 1. The age of information and the democratization of data;14
4.1;Technological change and the stock market in history;15
4.2;The defining moment for the Internet: ‘The Protocol for Packet Network Intercommunication’;17
4.3;The democratization of data;18
5;Chapter 2. The New Economy: where do Internet and technology stocks fit in?;20
5.1;The New Economy defined;20
5.2;The New Economy and technology stocks;27
5.3;Technological change and US economic statistics;30
5.4;Schumpeter: the pioneer of the analysis of technological change;32
5.5;Tofler’s ‘third wave’;33
5.6;The macro-economic consequences of the Internet economy;35
6;Chapter 3. Technology and the Internet economy: what made it all happen?;37
6.1;What is the Internet?;37
6.2;What is the Internet economy?;38
6.3;What is the World Wide Web?;40
6.4;What is an Internet Stock?;43
6.5;Developments in information technology;44
6.6; Appendix 3.1 Technology milestones in the evolution of the Internet;49
7;Chapter 4. Valuation techniques for traditional common stocks;55
7.1;Present value analysis: capitalization of income method;56
7.2;Fundamental analysis for valuing stocks;72
7.3;Economic value added (EVA);86
8;Chapter 5. Applying the Porter model to the valuation of Internet and technology stocks;88
8.1;Internal analysis: strategic factors within the company;89
8.2;External analysis: strategic factors for analysing the industry environment;90
8.3;The Porter model, the Internet and the Web;95
8.4;The Porter model revisited;96
8.5;Technology stocks and branding;99
8.6;Financial analysis in the valuation of companies;103
9;Chapter 6. Applying traditional valuation models to Internet and technology stocks: what are the problems?;108
9.1;Financial accounting and intangible assets;109
9.2;The role of intangible assets: if you cannot touch it what is it worth?;112
9.3;Methodology issues in technology stock valuations;115
9.4; Appendix 6.1 Key accounting issues in Internet and technology stock valuations;117
10;Chapter 7. Bubbleology, stock markets and the Internet and technology stock price collapse;121
10.1;The Internet and technology stock price collapse;121
10.2;Bubbles in stock markets;122
10.3;Bubble terminology;123
10.4;The role of expectations in analysing stock market bubbles;124
10.5;Bubbles and the efficient market hypothesis (EMH);126
10.6;Rational bubbles;128
10.7;Some famous bubbles in history;129
10.8;Speculative bubbles theory;136
10.9;Was the Internet and technology stock price crash a predictable bubble?;139
11;Chapter 8. How should we value Internet and technology stocks? I: Key methodology;140
11.1;Key issues in valuation of technology stocks;140
11.2;Valuation methods for technology stocks;141
11.3;Web metrics;147
12;Chapter 9. How should we value Internet and technology stocks? II: Ad hoc techniques and DCF revisited;152
12.1;Harmon’s Internet toolbox;152
12.2;Angel’s net stock valuation calculator;155
12.3;Discounted cash flow fights back!;158
12.4;Conclusion;160
13;Chapter 10. Derivatives markets, real options and the valuation of Internet and technology stocks;161
13.1;What are derivatives?;161
13.2;What are options?;163
13.3;Who participates in the derivatives markets?;166
13.4;The role of the arbitrageur and the pricing of futures markets;168
13.5;How are options priced?;176
13.6;Real options and Internet and technology stock valuations;190
14;Chapter 11. What are the lessons for investors from the year 2000 technology stocks collapse?;200
14.1;The laws of economics have not been repealed;201
14.2;Recent mistakes must be avoided;203
14.3;Schumpeter and creative destruction;203
15;Bibliography;205
15.1;Websites;211
16;Index;214