5 Posts found for Author: Pablo Fernández

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 … [ Read more ]

Content: Article | Author: Pablo Fernández | Source: IESE Insight | Subject: Finance

Imagine giving a negative value to the shares of a company with positive cash flow forecasts. While it may seem strange, this type of mistake is more common than you think. In his book, 201 errores en valoraciones de empresas (201 Mistakes in Company Valuations), IESE Prof. Pablo Fernández shows how the host of theories and methods available to analysts sometimes leads to confusing results. … [ Read more ]

Content: Related Content | Author: Pablo Fernández | Source: IESE Insight | Subject: Finance

What is a company worth? The answer to this question can vary depending on who you ask and the purpose of the valuation. As a result, figures derived by an options trader, credit liquidator, and an acquiring firm will not only differ in amount but, more interestingly, in the methods used to reach them. While discounted cash flow methods are widely accepted as the most … [ Read more ]

Content: Article | Author: Pablo Fernández | Source: IESE Insight | Subjects: Accounting, Finance

The Capital Asset Pricing Model (CAPM) is one of the most widespread asset pricing models in the financial world, but did you know that its results are not so reliable? According to Professor Pablo Fernández and researcher José Maria Carabias, both of IESE, it is possible to obtain an “Ã la carte” Beta coefficient. Should we thus blindly entrust the results of our investments … [ Read more ]

Content: Article | Authors: María Carabias, Pablo Fernández | Source: IESE Insight | Subject: Finance

Although methods for determining the value of a brand have proliferated in recent years, most are a bit flimsy, explains IESE Professor Pablo Fernández in his paper “Valoración de marcas e intangibles” (“Valuation of Brands and Intangibles”). The author analyzes and criticizes the reliability of the methods used by Damodaran, Interbrand, Financial World and Houlihan Valuation Advisors. According to his analysis, the methods are too … [ Read more ]

Content: Article | Author: Pablo Fernández | Source: IESE Insight | Subjects: Finance, Marketing / Sales