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Rating: 
Summary: Best Valuation Tool Available
Review: Pratt took his many years of valuation experience and put it in this one book. The book reviews the theory and practice of how to derive a discount rate for use in a DCF. At present, it's the best book in print for appraisers.
Rating:
Summary: Best Valuation Tool Available
Review: Pratt took his many years of valuation experience and put it in this one book. The book reviews the theory and practice of how to derive a discount rate for use in a DCF. At present, it's the best book in print for appraisers.
Rating:
Summary: For valuation of nonpublic companies - A good read!
Review: The valuation profession has exploded among CPAs, CBAs and others who attend a few seminars and then undertake to do this complicated work. Many do a shabby job, and more do not understand basic concepts of cost of capital. The sophistication and understanding of many business appraisers will grow from reading this book, as (I believe) mine did.This book is NOT written by an academician (although I think I recall that Shannon has a PhD in finance), and no doubt "they" (I admit, I don't really know any finance professors) will not approve. A fair example of an academician's work, reflecting a different approach and serving different needs, is Bradford Cornell's fine work on the equity risk premium. My personal belief is that finance professors don't really understand practical differences between valuation of public markets, publicly traded stocks and portfolios made up of publicly traded companies, and valuation of closely held companies. Shannon does understand the differences. He has authored several classic books on business valuation. He has valued thousands and testified in US Tax Court, state courts and federal courts across the country. He continues to speak to business appraisers across the country. This book summarizes issues he knows need to be better understood by those of us who consult with closely held businesses. I know it is not directly related to this book, but some may want to know a little about who the author is. Shannon Pratt's leadership in his field is well known and respected. As a pioneer of our profession, he is a hero to many of us. He is also a magnanimous personality, and I enjoy sitting in the front row of many seminars where he sits to afflict speakers with his trusty digital camera. This is a short book and an easy read, but packed with good information for those who want to better understand the cost of capital in the context of valuing small businesses.
Rating:
Summary: For valuation of nonpublic companies - A good read!
Review: The valuation profession has exploded among CPAs, CBAs and others who attend a few seminars and then undertake to do this complicated work. Many end up doing a shabby job, because they do not understand basic concepts of cost of capital. The understanding of aspiring business appraisers will grow from reading this book, as (I believe) mine did. This book is NOT written by an academician (although I think I recall that Shannon has a PhD in finance). A fair example of an academician's work, reflecting a different approach and serving different needs, is Bradford Cornell's fine work on the equity risk premium. Pratt has authored several classic books on business valuation. He has valued thousands and testified in US Tax Court, state courts and federal courts across the country. He continues to speak to business appraisers across the country. This book summarizes issues he knows need to be better understood by those of us who consult with closely held businesses. This is a short book and an easy read, but packed with good information for those who want to better understand the cost of capital in the context of valuing small businesses.
Rating: 
Summary: 101 Fudge Factors For Those Ignorant of Risk Neutral Pricing
Review: This book should be titled "I do not know how to price all risks when valuing companies so here are 101 fudge factor guesses I use instead". This is the wrong way to value companies and is inconsistent with financial asset pricing theory. Look elsewhere for better resources.
Rating:
Summary: 101 Fudge Factors For Those Ignorant of Risk Neutral Pricing
Review: This book should be titled "I do not know how to price all risks when valuing companies so here are 101 fudge factor guesses I use instead". This is the wrong way to value companies and is inconsistent with financial asset pricing theory. Look elsewhere for better resources.
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