This web page is designed to support "Investment Valuation", the fourth edition. The publisher is John Wiley and Sons. You can navigate the site by either going to individual chapters and getting supporting material by chapter, or by going to the supporting material directly. The supporting material includes:
You can read the preface to the book by clicking here. If you are an instructor using this book, click here .
Since this is the first printing of this edition, there will undoubtedly be typos that have crept in. The corrections can be found here. If you find other errors, please let me know.
Spreadsheets | Overheads (pdf versions of slides) | Datasets | References |
Solutions | Derivations and Discussion | Webcasts of my valuation classes |
Topic | Details |
Overheads
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Estimation Issues and Questions | |
Solutions to Problems | Download as pdf file |
Readings |
Topic | Details |
Overheads | Download as pdf file |
Illustrations | Illustration
2.1: Effects of mismatching cashflows and discount rates Illustration 2.2. The potential for misuse with comparable firms |
Data Sets | |
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Solutions to Problems | Download as pdf file |
Estimation Issues and Questions | |
Readings |
Topic | Details |
Overheads | Download as pdf file |
Illustrations |
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Data Sets |
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Spreadsheets | |
Solutions to Problems | Download as pdf file |
Estimation Issues and Questions | |
Readings |
Topic | Details |
Overheads | Download as pdf file |
Illustrations |
Illustration
6.1: Example of an event study - Effects of Option Listing on Stock
prices |
Data Sets | |
Spreadsheets | |
Solutions to Problems | Download as pdf file |
Estimation Issues and Questions | |
Readings |
Topic | Details |
Overheads | Download as pdf file |
Illustrations |
Illustration
9.1: Updated Earnings for Apple in 2024 |
Data Sets | |
Spreadsheets | |
Solutions to Problems | Download as pdf file |
Estimation Issues and Questions | |
Readings |
Topic | Details |
Overheads | Download as pdf file |
Illustrations | |
Data Sets | |
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Solutions to Problems | Download as pdf file |
Estimation Issues and Questions | |
Readings |
Topic | Details |
Overheads | Download as pdf file |
Illustrations |
Illustration
17.1: Comparing PE ratios and growth rates across firms: Beverage Companies |
Data Sets | |
Spreadsheets | |
Solutions to Problems | Download as pdf file |
Estimation Issues and Questions | |
Readings |
Topic | Details |
Overheads | Download as pdf file |
Illustrations |
Illustration
19.1: Estimating the PBV ratio for a stable firm |
Data Sets | pbvdata.xls: There is a dataset on the web that summarizes price to book and value to book multiples and fundamentals by industry group in the United States for the most recent year |
Spreadsheets | |
Solutions to Problems | Download as pdf file |
Estimation Issues and Questions | |
Readings |
Topic | Details |
Overheads | Download as pdf file |
Illustrations |
Illustration 21.1: Stable Growth Dividend Discount Model |
Data Sets | |
Spreadsheets | eqexret.xls: Estimates the value of a financial service firm from the expected excess returns in the future. |
Solutions to Problems | Download as pdf file |
Estimation Issues and Questions | |
Readings |
Topic | Details |
Overheads | Download as pdf file |
Illustrations |
Illustration
22.1: Normalizing Earnings for a Firm after a Poor Year: Daimler Benz
in 1995 Illustration 22.2: Valuing a cyclical firm during a recession adjusting the growth rate: Dana Corp in 2011 Illustration 22.3: Valuing a Cyclical Company: Toyota Illustration 22.4: Valuing a Commodity Company: Exxon Mobil Illustration 22.5: Valuing a Toll Road Illustration 22.6: Valuing a privatization CVRD Illustration 22.7: Adjust debt ratio over time: Hyundai Illustration 22.8: Valuing a company with negative earnings & default risk: MGM & MGM default probability |
Data Sets | |
Spreadsheets | |
Solutions to Problems | Download as pdf file |
Estimation Issues and Questions | |
Readings |
Topic | Details |
Overheads | Download as pdf file |
Illustrations | |
Data Sets |
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Spreadsheets |
higrowth.xls: Values a high growth firm, based on revenue growth and target margins. |
Solutions to Problems | Download as pdf file |
Estimation Issues and Questions | |
Readings |
Topic | Details |
Overheads | Download as pdf file |
Illustrations |
Will be updated in late January 2025 |
Data Sets |
Illustration 25.1: SAB Status Quo Value |
Spreadsheets | |
Solutions to Problems | Download as pdf file |
Estimation Issues and Questions | |
Readings |
Topic | Details |
Overheads | Download as pdf file |
Illustrations |
Illustration
26.1: Valuing an office building |
Data Sets |
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Spreadsheets |
reval.xls: Values a income-generating real estate properties. |
Solutions to Problems | Download as pdf file |
Estimation Issues and Questions | |
Readings |
Topic | Details |
Overheads | Download as pdf file |
Illustrations |
Illustration
27.1: Valuing a New York City Cab Medallion |
Data Sets |
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Spreadsheets |
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Solutions to Problems | Download as pdf file |
Estimation Issues and Questions | |
Readings |
Topic | Details |
Overheads | Download as pdf file |
Illustrations |
Illustration
28.1: Valuing the Option to Delay a Project |
Data Sets | |
Spreadsheets | |
Solutions to Problems | Download as pdf file |
Estimation Issues and Questions | |
Readings |
Topic | Details |
Overheads | Download as pdf file |
Illustrations |
Illustration
29.1: Valuing an Option to Expand: Ambev and Guarana |
Data Sets | |
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Solutions to Problems | Download as pdf file |
Estimation Issues and Questions | |
Readings |
Topic | Details |
Overheads | Download as pdf file |
Illustrations |
Illustration
30.1: Valuing Equity as an Option |
Data Sets | |
Spreadsheets |
equity.xls: Estimate the value the equity in a troubled firm as an option. |
Solutions to Problems | Download as pdf file |
Estimation Issues and Questions | |
Readings |
Topic | Details |
Overheads | Download as pdf file |
Illustrations |
Illustration
32.1: Discounted Cashflow Value and Economic Value Added |
Data Sets |
eva.xls: Firm and Equity EVAs by industry group for the United States |
Spreadsheets | |
Solutions to Problems | Download as pdf file |
Estimation Issues and Questions | |
Readings |
Topic | Details |
Overheads | Download as pdf file |
Illustrations |
Illustration 33.1: Valuing a company facing threat of nationalization |
Data Sets | |
Spreadsheets | |
Solutions to Problems | Download as pdf file |
Estimation Issues and Questions | |
Readings | A primer on statistical distributions |
Topic | Details |
Overheads | Download as pdf file |
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Data Sets |
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Solutions to Problems | Download as pdf file |
Estimation Issues and Questions | |
Readings |
Intrinsic Valuation | Pricing, Asset-based & Private Co Valuation | Real options, acquisitions and value enhancement |
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