Introduction to valuation

Myths

Valuation is objective

A well-researched and well-done valuation is timeless

Provides precise estimate of value

The more quantitative a model, the better the valuation

To make money on valuation, you have to assume that markets are inefficient

The process of valuation is not important

The role of valuation

Valuation and portfolio management

Valuation in acquisition analysis

Valuation in corporate finance

There's always bias when making decisions. However, all the data used is quantitative.

As every other research, results should be used with the consideration of time. Many factors can alter the results.

Theres always uncertainty about the final numbers, we should always keep in mind there's error.

It it not clear how markets would become inefficient , or efficient.

Making a model more complex does not necessarily mean better results

The result is important, but so is the process. Procedures must be done correctly in order to obtain stronger results.

Fundamental Analysts

The effects of synergy on the combined value of the two firms

The effects on value, of changing management and restructuring the target firm, should be taken into consideration

Maximization of firm's value

relationship among financial decisions

corporate strategy

firm value