Abstract

http://ssrn.com/abstract=1025424
 
 

References (36)



 
 

Citations (2)



 


 



119 Common Errors in Company Valuations


Pablo Fernandez


University of Navarra - IESE Business School

Andrada Bilan


University of Navarra - IESE Business School

November 25, 2013

IESE Business School Working Paper No. 714

Abstract:     
La versión española de este artículo se puede encontrar en: http://ssrn.com/abstract=962961.

This paper contains a collection and classification of 119 errors seen in company valuations performed by financial analysts, investment banks and financial consultants. The author had access to most of the valuations referred to in this paper in his capacity as a consultant in company acquisitions, sales, mergers, and arbitrage processes.

We classify the errors in six main categories: 1) Errors in the discount rate calculation and concerning the riskiness of the company; 2) Errors when calculating or forecasting the expected cash flows; 3) Errors in the calculation of the residual value; 4) Inconsistencies and conceptual errors; 5) Errors when interpreting the valuation; and 6) Organizational errors.

Number of Pages in PDF File: 27

Keywords: company valuation, valuation errors, valuation, historical beta, CAPM

JEL Classification: G12, G29, G31, M21

working papers series


Download This Paper

Date posted: October 30, 2007 ; Last revised: November 28, 2013

Suggested Citation

Fernandez, Pablo and Bilan, Andrada, 119 Common Errors in Company Valuations (November 25, 2013). IESE Business School Working Paper No. 714. Available at SSRN: http://ssrn.com/abstract=1025424 or http://dx.doi.org/10.2139/ssrn.1025424

Contact Information

Pablo Fernandez (Contact Author)
University of Navarra - IESE Business School ( email )
Camino del Cerro del Aguila 3
28023 Madrid
Spain
+34 91 357 0809 (Phone)
+34 91 357 2913 (Fax)
HOME PAGE: http://web.iese.edu/PabloFernandez/
Andrada Bilan
University of Navarra - IESE Business School ( email )
Avenida Pearson 21
Barcelona, 08034
Spain
Feedback to SSRN


Paper statistics
Abstract Views: 19,981
Downloads: 9,225
Download Rank: 214
References:  36
Citations:  2

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo7 in 0.266 seconds