Free Download of Valuation and Common Sense Book

RISKVIEWS recently got the material below in an email.  This material seems quite educational and also somewhat amusing.  The authors keep pointing out the extreme variety of actual detailed approach from any single theory in the academic literature.  

For example, the table following shows a plot of Required Equity Premium by publication date of book. 

You get a strong impression from reading this book that all of the concepts of modern finance are extremely plastic and/or ill defined in practice. 

RISKVIEWS wonders if that is in any way related to the famous Friedman principle that economics models need not be at all realistic.  See post Friedman Model.

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Book “Valuation and Common Sense” (3rd edition).  May be downloaded for free

The book has been improved in its 3rd edition. Main changes are:

1. Tables (with all calculations) and figures are available in excel format in: http://web.iese.edu/PabloFernandez/Book_VaCS/valuation%20CaCS.html
2. We have added questions at the end of each chapter.
3. 5 new chapters:

Chapters	Downloadable at:
32 Shareholder Value Creation: A Definition	http://ssrn.com/abstract=268129
33 Shareholder value creators in the S&P 500: 1991 – 2010	http://ssrn.com/abstract=1759353
34 EVA and Cash value added do NOT measure shareholder value creation	http://ssrn.com/abstract=270799
35 Several shareholder returns. All-period returns and all-shareholders return	http://ssrn.com/abstract=2358444
36 339 questions on valuation and finance	http://ssrn.com/abstract=2357432

The book explains the nuances of different valuation methods and provides the reader with the tools for analyzing and valuing any business, no matter how complex. The book has 326 tables, 190 diagrams and more than 180 examples to help the reader. It also has 480 readers’ comments of previous editions.

The book has 36 chapters. Each chapter may be downloaded for free at the following links:

Chapters	Downloadable at:
Table of contents, acknowledgments, glossary	http://ssrn.com/abstract=2209089
1  Company Valuation Methods	http://ssrn.com/abstract=274973
2  Cash Flow is a Fact. Net Income is Just an Opinion	http://ssrn.com/abstract=330540
3  Ten Badly Explained Topics in Most Corporate Finance Books	http://ssrn.com/abstract=2044576
4  Cash Flow Valuation Methods: Perpetuities, Constant Growth and General Case	http://ssrn.com/abstract=743229
5   Valuation Using Multiples: How Do Analysts Reach Their Conclusions?	http://ssrn.com/abstract=274972
6   Valuing Companies by Cash Flow Discounting: Ten Methods and Nine Theories	http://ssrn.com/abstract=256987
7   Three Residual Income Valuation Methods and Discounted Cash Flow Valuation	http://ssrn.com/abstract=296945
8   WACC: Definition, Misconceptions and Errors	http://ssrn.com/abstract=1620871
9  Cash Flow Discounting: Fundamental Relationships and Unnecessary Complications	http://ssrn.com/abstract=2117765
10 How to Value a Seasonal Company Discounting Cash Flows	http://ssrn.com/abstract=406220
11 Optimal Capital Structure: Problems with the Harvard and Damodaran Approaches	http://ssrn.com/abstract=270833
12 Equity Premium: Historical, Expected, Required and Implied	http://ssrn.com/abstract=933070
13 The Equity Premium in 150 Textbooks	http://ssrn.com/abstract=1473225
14 Market Risk Premium Used in 82 Countries in 2012: A Survey with 7,192 Answers	http://ssrn.com/abstract=2084213
15 Are Calculated Betas Good for Anything?	http://ssrn.com/abstract=504565
16 Beta = 1 Does a Better Job than Calculated Betas	http://ssrn.com/abstract=1406923
17 Betas Used by Professors: A Survey with 2,500 Answers	http://ssrn.com/abstract=1407464
18 On the Instability of Betas: The Case of Spain	http://ssrn.com/abstract=510146
19 Valuation of the Shares after an Expropriation: The Case of ElectraBul	http://ssrn.com/abstract=2191044
20 A solution to Valuation of the Shares after an Expropriation: The Case of ElectraBul	http://ssrn.com/abstract=2217604
21 Valuation of an Expropriated Company: The Case of YPF and Repsol in Argentina	http://ssrn.com/abstract=2176728
22 1,959 valuations of the YPF shares expropriated to Repsol	http://ssrn.com/abstract=2226321
23 Internet Valuations: The Case of Terra-Lycos	http://ssrn.com/abstract=265608
24 Valuation of Internet-related companies	http://ssrn.com/abstract=265609
25 Valuation of Brands and Intellectual Capital	http://ssrn.com/abstract=270688
26 Interest rates and company valuation	http://ssrn.com/abstract=2215926
27 Price to Earnings ratio, Value to Book ratio and Growth	http://ssrn.com/abstract=2212373
28 Dividends and Share Repurchases	http://ssrn.com/abstract=2215739
29 How Inflation destroys Value	http://ssrn.com/abstract=2215796
30 Valuing Real Options: Frequently Made Errors	http://ssrn.com/abstract=274855
31 119 Common Errors in Company Valuations	http://ssrn.com/abstract=1025424
32 Shareholder Value Creation: A Definition	http://ssrn.com/abstract=268129
33 Shareholder value creators in the S&P 500: 1991 – 2010	http://ssrn.com/abstract=1759353
34 EVA and Cash value added do NOT measure shareholder value creation	http://ssrn.com/abstract=270799
35 Several shareholder returns. All-period returns and all-shareholders return	http://ssrn.com/abstract=2358444
36 339 questions on valuation and finance	http://ssrn.com/abstract=2357432

I would very much appreciate any of your suggestions for improving the book.

Best regards,
Pablo Fernandez

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