This web site is designed to support "The Little Book of Valuation". The publisher is John Wiley and Sons. Since it is one of four 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.
I apologize for errors that have found their way into the print edition. I have a list below of some of them. If you find more, I would like to add them to the list.
The Mea Culpa List: Errors and Corrections
Topic | Discussion | Spreadsheet |
Set up | ||
The time value of money | Intuition behind the time value of money |
Present Value Calculator |
Accounting 101 | Asset value Determing Debt and Equity Measuring Earnings Measuring Profitability |
Financial Ratio Calculator |
Statistics |
Topic | Details | |||
Intrinsic Valuation | Input | Discussion | Spreadsheets | Datasets |
Cash flows | Estimating cashflows | Margins by sector | ||
Growth Rates | Estimating Growth | Historical
growth rates by sector Fundamental growth rates in equity earnings by sector Fundamental growth rates in operating income by sector |
||
Discount Rates | Betas by sector Implied Equity Risk Premiums over time Country risk premiums Cost of capital by sector |
|||
Terminal Value | The Big Number | |||
Value Per Share | Per Share Value | |||
Relative Valuation | Multiples | The Choices | PE
ratios by sector EV multiples by sector Book Value multples by sector Revenue multiples by sector |
|
Comparables | Finding comparables | |||
Control effects | Controlling for differences | Market regressions: US and Global |
Topic | Details | |||
Discussion | Illustration | Generic Spreadsheet | Webcast | |
Young Growth Companies | Evergreen Solar | Valuing a young, growth company | Webcast | |
Growth Companies | Under Armour | Valuing a growth company | Webcast | |
Mature Companies | Hormel Foods | Valuing
a mature company |
Webcast | |
Declining & Distressed Companies | Las Vegas Sands | Valuing a declining company | Webcast |
Topic | Details | |||
Discussion | Illustration | Generic Spreadsheet | Webcast | |
Financial Service | Characteristics Value Drivers |
Wells Fargo | Valuing a bank | Webcast |
Commodity & Cyclical |
Toyota |
Earnings Normalizer |
Webcast | |
Intangible Assets | Characteristics Value Drivers |
Amgen | Capitalizing
intangible expenses |
Webcast |
Glossary |
Updated data |
Spreadsheets |
Readings |