Background Note | HBS Case Collection | February 1992 (Revised July 1992)

Note on Cross-Border Valuation

by W. Carl Kester and Julia Morley


Provides a fundamental technical review of valuation techniques used to assess cross-border investments. Discusses the discounting of free cash flows with a weighted average cost of capital, the use of adjusted present value, and the importance of considering real options. Special concerns such as foreign-exchange risk, country risks, and so forth are also discussed.

Keywords: Valuation; Cross-Cultural and Cross-Border Issues;


Kester, W. Carl, and Julia Morley. "Note on Cross-Border Valuation." Harvard Business School Background Note 292-084, February 1992. (Revised July 1992.)