Valuing companies is as important as it is dangerous. A miscalculation or faulty method can prove quite costly in negotiations and investing. Moreover, there is no single, foolproof method, and absurd results are often obtained, such as those cited by IESE’s Pablo Fernández in his document cataloging 204 mistakes in company valuations. The author organizes the common mistakes into seven groups – covering errors in discount rates and risk measures, cash flow calculations, and terminal value calculations first. He then turns to inconsistencies and conceptual errors, interpreting valuations, interpreting accounting, and organizational missteps.