Pablo Fernandez offers Valuation and Common Sense for free

BVWire–UKIssue #4-1
July 2, 2019

valuation method
brand value, intellectual property, beta, cost of capital, risk-free rate, tax, weighted average cost of capital (WACC), discount, discounted cash flow (DCF), capital asset pricing model (CAPM), premium, risk premium

Valuation and Common Sense (2019, 7th edition) ‘explains the nuances of different valuation methods and provides the reader with the tools for analyzing and valuing any business,’ Pablo Fernandez, professor of finance, IESE Business School, tells BVWire—UK.

The 24 chapters may be downloaded for free at the following links:

Valuation and Common Sense (2019, 7th edition).Chapters Downloadable at:
  Table of Contents, Acknowledgments, Glossary
1‘Company Valuation Methods’
2‘Cash Flow Discounting: Fundamental Relationships and Unnecessary Complications’
3‘Cash Flow Valuation Methods: Perpetuities, Constant Growth and General Case’
4‘Valuing Companies by Cash Flow Discounting: Ten Methods and Nine Theories’
5‘WACC: Definition, Misconceptions and Errors
6‘Valuation Using Multiples: Dispersion. Useful to compare and to negotiate
7‘Price to Earnings Ratio, Value to Book Ratio and Growth’
8‘How to Value a Seasonal Company Discounting Cash Flows’
9‘Equity Premium: Historical, Expected, Required and Implied
10‘CAPM: An Absurd Model’
11‘CAPM: The Model and 307 Comments About It’
12‘The Equity Premium in 150 Textbooks’
13‘Market Risk Premium and Risk-Free Rate Used for 69 Countries in 2019: A Survey’
14‘Are Calculated Betas Good for Anything?’
15β = 1 Does a Better Job Than Calculated Betas’
16‘Valuing Real Options: Frequently Made Errors’
17‘Value of Tax Shields (VTS): 3 Theories with “Some” Common Sense’
18“Internet Valuations: The Case of Terra-Lycos’
19‘Valuation of Internet-Related Companies’
20‘Valuation of Brands and Intellectual Capital’
21‘Interest Rates and Company Valuation’
22‘Dividends and Share Repurchases’
23‘How Inflation Destroys Value: Taxes’
24‘119 Common Errors in Company Valuations’ 

Business valuators can download Fernandez’s current tables and figures (updated through May 2019) in an Excel format here.

Please let us know if you have any comments about this article or enhancements you would like to see.