Average Reviews:
(More customer reviews)There are many different variations on the basic DCF valuation model. Every bank has one, every business school has one, and everyone modifies it for their own purposes.
Keith's book offers some distinct advantages: (1) It actually walks you through the steps of building the model, instead of simply typing the inputs into one. This will ensure you understand it, but it might take some time to build it. (The full model is included for people who want to skip the typing). (2) Secondly, it is a "full blown" model and not a simplified version of one. While the first is common, and the second is common, the combination is (in my experience) uncommon.
More interestingly, (3) this model is more advanced than most of the others out there. The primary improvement is he has more "checks and balances" thrown in. The model has little checks that make sure cash ties through, that the extra cash pays off the debt, that capital expenditures are accounted for and that their depreciation pours through the income statement etc. This is invaluable. It does make it complicated, and sometimes I had circular references that were hard to fix, but this just forced me to deal with what was really going on in the model.
All in all, nicely done.
Click Here to see more reviews about: Corporate Valuation Modeling: A Step-by-Step Guide (Wiley Finance)
A critical guide to corporate valuation modeling
Valuation is at the heart of everything that Wall Street does. Every day, millions of transactions to purchase or sell companies take place based on prices created by the activities of all market participants. In this book, author Keith Allman provides you with a core model to value companies.
Corporate Valuation Modeling takes you step-by-step through the process of creating a powerful corporate valuation model. Each chapter skillfully discusses the theory of the concept, followed by Model Builder instructions that inform you of every step necessary to create the template model. Many chapters also include a validation section that shows techniques and implementations that you can employ to make sure the model is working properly.
Walks you through the full process of constructing a fully dynamic corporate valuation model
A Tool Box section at the end of each chapter assists readers who may be less skilled in Excel techniques and functions
Complete with a companion CD-ROM that contains constructed models, this book is an essential guide to understanding the intricacies of corporate valuation modeling.
Note: CD-ROM/DVD and other supplementary materials are not included as part of eBook file.
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