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Valuation Readings


Bias in Valuation
  1. The Rise of Jack Grubman
  2. The Fall of Jack Grubman
  3. The Consequences of a Sell Recommendation
  4. A Sage on Enron
  5. Fairness Opinion: What's fair about it?
  6. Second Opinions?
  7. Regulation FD: The SEC's shot at evening the playing field
Valuation Approaches
  1. Dumb Investors, Smart Markets
  2. Why don't they teach you to invest like Warren Buffet?
  3. Valuation Basics (courtesy of the Motley Fool)
  4. Why don't they teach you to invest like Warren Buffett?
  5. An open letter to Warren Buffett (from a non-admirer)
Riskfree Rate
Estimating Riskfree Rates
Risk Premium
  1. Classic Rule of Risk Premium under attack (WSJ)
  2. Greenspan on the Risk Premium
  3. Estimating Risk Premiums
  4. Those were the days... An argument for lower risk premiums
  5. Historical Risk Premiums: A reexamination
  6. Country bond default spreads over time
Risk Parameters
  1. Estimating Risk Parameters
  2. A contrary view on betas
Cost of Debt
  1. S&P on the Ratings Process (Check under Ratings & Criteria)
  2. Off Balance Sheet Items
Estimating Earnings
  1. R& D's effects on earnings
  2. Smoothing Earnings
  3. Is this debt?
  4. Operating Leases as Debt
  5. One-time Write off?
  6. The Accounting Black Box
  7. The Practices of Five Companies: GE, Coke, AIG, Williams and IBM
  8. Warnings Signs in Earnings Report
Cash Flows
  1. A Primer on Financial Statements
  2. Adjusting for Operating Leases
  3. Adjusting for R&D Expenses
  4. Accounting versus Cash Earnings
  5. Working Capital and Cashflows
Growth and Growth Patterns

  1. Estimating Growth
  2. ROIC rules
  3. Measuring ROE and ROC rigtht
  4. The inside of earnings growth in the 1990s
  5. Evaluating analyst growth estimates
  6. Competitive Advantage Period
  7. Growth at young firms: How long does it last?
Other Valuation Issues
  1. The Dark Side of Valuation
  2. The Value of Transparency
  3. The Value of Control
  4. Dividend Tax Cut and Value
Cash and Cross Holdings
  1. Dealing with Cash and Cross Holdings
Dealing with options
  1. Dealing with Management Options
  2. Option backlash at companies
  3. Options at dot.com firms
  4. The growth of option compensation and problems
  5. Market based solutions to pricing employee options
Value Enhancement
  1. Microsoft learning cost-cutting from GE
  2. Learning from the Super Companies
  3. Dare to keep your stock price low
  4. Value Enhancement: Back to Basics
  5. EVA as elixir
  6. An EVA debate
  1. Synergy in Mergers
  2. The Keys to Success in M & A: The KPMG Report
  3. Stocks versus Cash Acquisitions: The Performance of Acquirers
  4. New Rules on Goodwill
  5. The Merger Bonus: Skewed Incentives?
  6. CEO Egos and Big Mergers
Relative Valuation
  1. Malkiel on PE ratios
  2. Interest rates and PE ratios
  3. Low price to book ratios: Not always a bargain
Option Pricing Models
  1. Making real options real
  2. Literature on real options in venture capital and R&D
  3. Real Options in Valuation
  4. Real Options and Business Strategy
  5. How much is flexibility worth?
  6. Get Real
  7. Reality Check: A skeptical look at real options
  8. The Real Power of Real Options