bc0e6d7f_ue_Investing__Timeless_Reading__Description
[Title] ‘Valuing Distressed Firms [Download] Download paper (pdf)Download Global Crossing valuationdistress.xls (estimate the likelihood of default from bond price) [Description] 
Traditional valuation techniques- both DCF and relative – short change the effects of financial distress on value. In most valuations, we ignore distress entirely in valuation and make implicit assumptions about the consequences of a firm being unable to meet its financial obligations and these assumptions often are unrealistic. Even those valuations that purport to consider the effect of distress do so incompletely. In this paper, we begin by considering how distress can be explicitly considered in both discounted cashflow and relative valuation models.
Value Investing: Timeless Reading
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