Subject category:
Finance, Accounting and Control
Published by:
Darden Business Publishing
Version: 15 July 2013
Revision date: 4-Sep-2013
Length: 18 pages
Data source: Published sources
Abstract
The special characteristics of the business environment in emerging markets, as described in the previous two technical notes, affect the validity and applicability of many of the typical valuation assumptions that are considered applicable in the context of developed or emerged markets. As a result, appropriate adjustments in methodology are required when the analyst values firms or investment projects in emerging markets. This technical note first considers the general approaches that can be used for valuing a firm in a foreign market, whether it is an emerged or an emerging one. It then shifts focus to a detailed examination of the steps that investors should follow to complete the valuation of emerging-market firms.
About
Abstract
The special characteristics of the business environment in emerging markets, as described in the previous two technical notes, affect the validity and applicability of many of the typical valuation assumptions that are considered applicable in the context of developed or emerged markets. As a result, appropriate adjustments in methodology are required when the analyst values firms or investment projects in emerging markets. This technical note first considers the general approaches that can be used for valuing a firm in a foreign market, whether it is an emerged or an emerging one. It then shifts focus to a detailed examination of the steps that investors should follow to complete the valuation of emerging-market firms.