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Competitive Analysis for Firm Valuation: The Missing Link between Strategy and Corporate Finance

Competitive Analysis for Firm Valuation: The Missing Link between Strategy and Corporate Finance

Vincenzo Perrone, Claudio Chiacchierini, Francesco Perrini

ISBN: 978-1-119-37348-3

Nov 2020

224 pages

Select type: O-Book


The first book to effectively combine financial and strategic valuation

Competitive Analysis for Firm Valuation explains why traditional methods of value computation are not only incomplete, but can be dangerously inaccurate. Until now, company valuation has been largely based on mathematical models and algorithmic analysis of tangible financial assets and liabilities. This is the first book to comprehensively address the valuation of key intangibles: human, intellectual, social, symbolic, and organizational assets.

Past performance is often the best predictor of future performance, which is why it makes little sense for analysts to ignore firms' historical use of strategic resources. In current market conditions, competitive advantage is determined by strategy and finance together. Competitive Analysis for Firm Valuation blends these two value generators into a unique new model for accurate value analysis. This novel approach will help you stay away from risky abstractions and arrive at sound, credible value estimates. Contrary to staunchly numeric valuation methods, business organization and business economy can and should be taken into account in every analysis, and this book shows how.

  • Learn how to value intangibles and account for the neglected foundations of value
  • Arrive at better, more forward-thinking valuations through an understanding of key social, economic, and organizational mechanisms
  • Understand the interactions between financial value and strategy
  • Discover how to accurately assess human, social, and intellectual capital

The authors of Competitive Analysis for Firm Evaluation employ their experience at one of the world's leading business schools to put forward a new approach to firm valuation. This book combines traditional and new methods, yielding a reliable process for bridging the gap between finance and strategy.