Valuation and Common Sense (8th edition) by Pablo Fernandez is a free e-book published in April 2023. The book explains various approaches and issues on business valuation.
The individual chapters can be downloaded free of charge via SSRN database by the following links:
Chapters:
Table of contents, acknowledgments, glossary
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. PER (Price to earnings ratio), PtoB (value to book ratio) and g (growth)
8. How to value a seasonal company discounting cash flows
9. Equity premium: historical, expected, required and implied
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 in 80 countries in 2023: a survey
14. Are calculated betas good for anything?
15. Beta = 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
