Traps, pitfalls and snares in the valuation of technology

Research Technology Management

Volumn 41, Issue 5, 1998, Pages 45-54

  Boer, F Peter ^{a,b,c,d,e,f,g,h,i}  

^a CEO of Tiger Scientific Inc   (United States)

^b YALE UNIVERSITY   (United States)

^c CTO of WR Grace and Co   (United States)

^d DOW CHEMICAL COMPANY   (United States)

^e American Can Company   (United States)

^f PRINCETON UNIVERSITY   (United States)

^g HARVARD UNIVERSITY   (United States)

^h NATIONAL ACADEMY OF ENGINEERING   (United States)

ⁱ Industrial Research Institute   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

INDUSTRIAL ECONOMICS; MARKETING; RESEARCH AND DEVELOPMENT MANAGEMENT;

DISCOUNTED CASH FLOW (DCF) ANALYSIS;

VALUE ENGINEERING;

EID: 0032163693     PISSN: 08956308     EISSN: None     Source Type: Journal    
DOI: 10.1080/08956308.1998.11671237     Document Type: Article

References (12)

1. Lau, Lawrence J. "Sources of Long-Term Economic Growth," in The Mosaic of Economic Growth (R. Landau et al., eds.), Stanford: Stanford University Press, 1996, pp. 79-81.
2. Boer, F. Peter. "Linking R&D To Growth and Shareholder Value." Research · Technology Management, May-June, 1994, pp. 16-22.
3. Copeland, Tom, Koller, Tim and Murrin, Jack. Valuation: Measuring and Managing the Value of Companies, New York: Wiley, 1995, pp. 142-5.
4. Brealey, Richard A. and Myers, Stewart C. Principles of Corporate Finance, New York: McGraw-Hill, 1996.
5. Stevens, Greg A. and Burley, James. "3,000 Raw Ideas = 1 Commercial Success!" Research · Technology Management, May-June, 1997, pp. 16-27.
6. Nesheim, John L. High Tech Start Up. Saratoga, CA: 1997.
7. Foster, Richard N. Innovation, The Attacker's Advantage, New York: Summit Books, 1986.
8. There is a pitfall, too, in using price-earnings multiples for valuation, as these reflect both the operations of a company and its financial structure (i.e., corporate debt). Valuations based solely on operating performance, such as EBIT and EBITDA, eliminate this potential source of error.
9. Cooper, Robert G. Winning at New Products, New York: Addison Wesley, 1993.
10. Faulkner, Terrence W. "Applying Options Thinking' to R&D Valuation." Research · Technologv Management, May-June, 1996, pp. 50-56.
11. Mitchell, G. P. and Hamilton, W. "Managing R&D as a Strategic Option." Research · Technology Management, May-June, 1988, pp. 15-22.
12. Morris, P.; Teisberg, E.; and Kolbe, A. L. "When Choosing R&D Projects, Go With Long Shots." Research · Technology Management, January-February 1991, pp. 35-40.