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This web site is designed to support "The Little Book of Valuation", the revised edition (published in 2024). This edition updates the 2012 version, bringing in new companies to illustrate the challenges of valuation at different stages of the life cycle, and in different sectors. The publisher is John Wiley and Sons. Since it is one of many books that I have on valuation, it behooves me to explain how this book is different from my rest and I attempt to do so here. Once you have got that out of the way, you can get a quick review of the tools that make up the valuation toolkit and then move on to valuation inputs and mechanics. The next two sections look at adapting valuation models for different typies of companies - across the life cycle and then across sectors. The last section has a glossary and links to datasets and spreadsheets. Along the way, I also provide links to the annual reports and filings that I used in the valuations to allow you to recreate the numbers.
YouTube Playlist for the book: https://www.youtube.com/playlist?list=PLUkh9m2Borql51x9Lj8S-bHUq3V6kuix-
Unlike the pope, I am extremely fallible, and with a book that is as full of numbers as this one, there are errors that creep in. The corrections that I have found so far are at this link:
Book corrections: https://pages.stern.nyu.edu/~adamodar//New_Home_Page/littlebook2/LBV2corrections.html
| Topic | Discussion | Spreadsheet | Webcasts |
| Set up (Chapter 1) | The foundations | ||
| The time value of money (Chapter 2) | Intuition behind the time value of money |
Present Value Calculator | The tools of the trade |
| Accounting 101 | Asset value Determing Debt and Equity Measuring Earnings Measuring Profitability |
Financial Ratio Calculator | |
| Statistics (Chapter 2) |
| Topic | Details | Webcasts | |||
| Intrinsic Valuation (Chapter 3) | Discussion | Spreadsheets/ Illustrations | Datasets | Intrinsic Value | |
| Estimating cashflows | Margins by sector | ||||
| Estimating Growth | Historical
growth rates by sector Fundamental growth rates in equity earnings by sector Fundamental growth rates in operating income by sector |
||||
| Betas by sector Implied Equity Risk Premiums over time Country risk premiums Cost of capital by sector |
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| The Big Number | |||||
| Per Share Value | |||||
| Kraft Heinz in 2023 | |||||
| Relative Valuation (Chapter 4) | The Choices | PE
ratios by sector EV multiples by sector Book Value multples by sector Revenue multiples by sector |
Pricing | ||
| Beverage company Pricing | |||||
| Finding comparables | |||||
| Controlling for differences | Market regressions: US and Global | ||||
| Storytelling and Value (Chapter 5) | Stories and Value | Zomato for 2022 IPO | Stories and Numbers | ||
| Topic | Details | |||
| Discussion | Illustration | Blog Posts | Webcast | |
| Young Growth Companies (Chapter 6) | Airbnb for 2020 IPO | Webcast | ||
| Growth Companies (Chapter 7) | Alphabet (Google) in 2023 | Webcast | ||
| Mature Companies (Chaper 8) | Unilever in 2023 | Webcast | ||
| Declining & Distressed Companies (Chapter 9) | Bed, Bath & Beyond in 2023 | Webcast | ||
| Topic | Details | |||
| Discussion | Illustration | Generic Spreadsheet | Webcast | |
| Financial Service (Chapter 10) | Characteristics Value Drivers |
Citigroup in 2023 | Valuing a bank | Webcast |
Commodity & Cyclical (Chapter 11) |
Earnings Normalizer |
Webcast | ||
| Company | Raw Data |
| Kraft Heinz | 10K for 2022 |
| Beverage company pricing | Beverage company data |
| Zomato IPO | Zomato prospectus |
Airbnb IPO |
Airbnb prospectus |
| Alphabet/Google | Google 10K for 2022 |
| Unilever | Unilver Annual Report |
| Bed, Bath & Beyond | BB&B Historical data |
| Citigroup | Banking data |
| Glossary |
| Updated data |
| Spreadsheets |
| Readings |