This paper contains a collection and classification of 96 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...

2005 was a very good year for the shareholders of the companies in the Euro Stoxx 50. The shareholder value creation of these 50 companies was 292.9 billion. The companies that created more value for their shareholders were Total ( 30 billion), Sanofi-Synthelabo ( 23.2 billion) and Eni ( 20.7...

This paper contains a collection and classification of 96 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...

The value of tax shields depends only on the nature of the stochastic process of the net increases of debt. The value of tax shields in a world with no leverage cost is the tax rate times the current debt plus the present value of the net increases of debt. By applying this formula to specific...

The value of tax shields depends only on the nature of the stochastic process of the net increases of debt. The value of tax shields in a world with no leverage cost is the tax rate times the current debt plus the present value of the net increases of debt. We develop valuation formulae for a...

There is a wealth of literature about discounted cash flow valuation. In this paper, we will discuss the most important papers, highlighting those that propose different expressions for the value of the tax shield (VTS). The discrepancies between the various theories on the valuation of a...

During 2004, 64% of the companies included in the Samp;P 500 created value, while in 2003 87% of these companies did it. The market value of the 500 companies was $11.2 trillion in 2004 and $10.1 trillion in 2003. The top shareholder value creators in 2004 were Exxon, General Electric, Ebay,...

During 2003, 87% of the companies included in the Samp;P 500 created value, while in 2002 just 17% of these companies did it. The market value of the 500 companies was $10.1 trillion in 2003 and $7.9 trillion in 2002. The top shareholder value creators in 2003 were Intel, Cisco, Citigroup,...

2002 was a bad year for the shareholders of the companies in the Euro Stoxx 50: the shareholder value destruction of the companies in the Euro Stoxx 50 was Euro 958,968 million. In 2002 only Eni created value (Euro 3,374 million). The remaining 49 companies destroyed value and had negative...

The value of tax shields depends only on the nature of the stochastic process of the net increase of debt. The value of tax shields in a world with no leverage cost is the tax rate times the current debt, plus the tax rate times the present value of the net increases of debt. By applying this...