Valuation of Internet and Technology Stocks: Implications for Investment Analysis

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

Preface: the collapse of technology/Internet stocks; The age of information and the democratization of data; The new economy: where do technology/Internet stocks fit in?; Technology and the Internet Economy: what made it all happen?; How do you value traditional common stocks?; Applying the Porter Model to the valuation of technology/Internet stocks; What are the problems with applying traditional valuation models for Technology/Internet stocks?; Bubblelogy, stock market and the technology/Internet stock price collapse; What do we know about the valuation of technology/Internet stocks (I)?; What do we know about the valuation of technology/Internet stocks (II)?; Derivative markets, real options and the valuation of technology/Internet stocks; What are the lessons for investors from the year 2000 collapse of technology/Internet stocks?; Bibliography and web site addresses.