A particular strength of the book is the authors' reference to Excel functions and which ones are useful in valuation models. This book is not just theory; there are concrete "how to" examples throughout. Once you've finished this book, you can do more than cite valuation theory: you can build valuation models.

One of the best finance books I've ever read.

12 of 12 found the following review helpful:


Clear, Succinct, Excellent !  Jan 14, 1999 By Eric Brendan Chang
This is one of the best practical corporate finance books you can find. It serves especially well as a bridge between introductory finance and more advanced topics. The authors did an excellent job at hammering some most important concepts into readers' heads while avoiding too much theoretical complications that hinter understanding. The step-by-step valuation method is especially valuable. The use of the spreadsheet is enormously helpful for students of finance. Highly recommended! I hope Professor Benninga and Professor Sarig can keep producing this kind of hands-on, clear guide to finance. (and maybe a series of books at different difficulty levels)

13 of 14 found the following review helpful:


Comprehensive overview of valuation approaches  May 27, 1999
This book gives an excellent overview of different valuation techniques, is detailed enough yet easy to understand. As such this text is ideal for self-study. It's by far the best book I've seen on the topic and application of valuations and financial modeling.

7 of 7 found the following review helpful:


An excellent valuation book that should be well known by a wider audience  Feb 08, 2007 By Bachelier ""1004""
Simon Benninga's and Oded Sarig's "Corporate Finance: A Valuation Approach" (CFaVA) is one of those secret texts that true insiders cherish while other less efficient or significant works capture limelight.

"CFaVA" is comparable to the McKinsey group authors Koller, Goedhart, Wessels's "Valuation: Measuring and Managing the Value of Companies" and also Aswath Damodaran's "Investment Valuation: Tools and Techniques for Determining the Value of Any Asset" [Full disclosure: I've taught graduate Corporate Valuation with both texts].

Benninga and Sarig's work is excellent because it is lean while not oversimplified. The key chapter of estimating discount rates is the finest one-chapter treatment of the subject I've seen in my career, and should be required reading for any M&A or LBO banker or PE associate. The chapter on valuing by multiples is also useful for relative value and comparative scenarios for deal-makers.

Chapter 12 covers convertible securities, and it would be unfair to say it is bad simply because it is compressed and incomplete (entire libraries have been written on the subject of convertible bond valuation), but also appears out of place in the content of the book until you realize that the random elements of a stock price going forward in time intersect with capital structure choices and enterprise value, so the connection and recursive element of valuation is made at once explicit with an example.

An excellent book that should be well known by a wider audience.

6 of 6 found the following review helpful:


Ground Up Valuation Techniques  Jan 17, 2002
If you are new to corporate finance valuation this book will take you to the next level. Provides step by step instruction on how to value companies. Covers Excel techniques with easy to follow examples. Covers 1 full semester at most business schools.

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