Valuation of Internet and Technology Stocks

Implications for Investment Analysis

Brian Kettell

• Publisher: Butterworth-Heinemann
• Year: 2002
• Print ISBN: 9780750653831
• eBook ISBN: 9780080520384
• Topic: Economics
• Subtopic: Banks & Banking
• Index: Economics

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

Table of contents

• Front Cover
• Valuation of Internet and Technology Stocks
• Copyright Page
• Contents
• Preface: The collapse of Internet and technology stocks
• Chapter 1. The age of information and the democratization of data
• Chapter 2. The New Economy: where do Internet and technology stocks fit in?
• Chapter 3. Technology and the Internet economy: what made it all happen?
• Chapter 4. Valuation techniques for traditional common stocks
• Chapter 5. Applying the Porter model to the valuation of Internet and technology stocks
• Chapter 6. Applying traditional valuation models to Internet and technology stocks: what are the problems?
• Chapter 7. Bubbleology, stock markets and the Internet and technology stock price collapse
• Chapter 8. How should we value Internet and technology stocks? I: Key methodology
• Chapter 9. How should we value Internet and technology stocks? II: Ad hoc techniques and DCF revisited
• Chapter 10. Derivatives markets, real options and the valuation of Internet and technology stocks
• Chapter 11. What are the lessons for investors from the year 2000 technology stocks collapse?
• Bibliography
• Index