on 31 January 2009
The fourth edition of this book is claimed to be completely revised and updated. The results of this mature reflection and refinement seem disappointing. As a vehicle for learning, its accomplishments and that of its readers who seek instruction through it, are also likely to be modest and equally disappointing.
Not only is the book expensive in comparison to other more comprehensive texts, some of which are also published by Wiley, it is also poorly supported by working examples of progressive complexity; notwithstanding the fact that a separate, slim volume of exercises is available at extra cost. Any unfortunate students seeking enlightenment by working through the Heineken valuation example, which runs as a case study through four of the chapters, are likely to be confronted by brick walls to the progress of their understanding merely for the want of any adequate commentary as to how the model is constructed. Should their determination drive them to the desperate lengths, and unjustified expense, of purchasing the CD-ROM produced to accompany the book, then further disappointment awaits them; none of the examples are to be found there. The DCF model which is provided is a sprawling attempt at a universal panacea for most valuation ills. As a vehicle promoting insight and understanding into Discounted Cash Flow analysis it is entirely unsuccessful. While in style the book is readable, any potential purchaser contemplating this book, as an instructive text and an aide to developing real analytical ability, is strongly urged to look further for there are better. Professionals in the field may also find a broader and deeper perspective of analysis leading to valuation is to be found elsewhere.