15 of 16 people found the following review helpful:
5.0 out of 5 stars
A spectacularly valuable book, 30 Aug 2000
By A Customer
I have to strongly disagree with another reviewer who said this was not a good book for professionals. I have used this book professionally for several years and find it very, very valuable. And I have encountered a number of professionals who fail to look at corporate value in a disciplined enough way because they have not learned some of the basic lessons in this book.
Chapters 2, 3, & 4 alone are a thought-provoking essay on how corporations create shareholder value through good planning and execution, or how they destroy it by not paying attention to the basics. Any corporate finance professional, corporate strategist or banker thinking of undertaking (or funding) a corporate acquisition should read this part of the book. Plus, any non-finance professional who wonders what his bankers and corporate finance department are up to should be familiar with this thinking as well.
Much of the rest of the book is a how-to guide that describes how to value companies, and how various moves (such as restructuring, mergers or international expansion) can add or subtract corporate value. Granted, it is at a pretty high level, and if you are actually trying to build a complex valuation model you still have to think through a lot of the detail on your own. But it is inspirational in encouraging the professional to become more serious about valuation, and describes enough of the framework to serve as a very good guide to getting very far down the path. Those who need to get more detailed can find more specialist texts to take them to the next level of complexity.
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5 of 5 people found the following review helpful:
4.0 out of 5 stars
An excellent resource for DCF applications, but..., 12 Oct 1998
By A Customer
This book provides excellent information about the DCF Valuation process. The reader will learn how to develop the model and where to input the various data, as well as understand how to justify some of the assumptions such as cost of equity. The disk that accompanies the hardcover addition will be very useful to some practitioners, although analysts with strong modeling skills will likely want to create their own spreadsheet. The book, however, is not a comprehensive guide to valuation, as it does not discuss other methods such as the peer group comparison. Nonetheless, it is an excellent reference book on the topic of DCF Valuation, and it belongs on every financial analyst's desk.
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1 of 1 people found the following review helpful:
5.0 out of 5 stars
teaches the basics of valuation and strategy formulation, 15 Dec 2000
after reading this book my understanding of value concept has changed compeletely. Real life examples and detailed explanations of models helps you to understand the concepts clearly. Additionally, all models and formulas suggested in the book can be applied easily in excel formulas. In my opinion, each business strategist and consultant and finance managers should read this book. All concepts in the book can be applied to real-life business life.
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