Early in my career as an analyst, I built highly complex and detailed financial models, but I later realized that the increased complexity of such models rarely translates into increased accuracy. That revelation inspired this book to expand on the 9 Valuation Mistakes and reveal how to avoid them. The 9 Valuation Mistakes:1. Overly optimistic revenue forecasts2. Underestimating expenses causing unrealistic profit3. Growing fixed assets slower than revenue4. Confusing growth Capex with maintenance Capex5. Forecasting drastic changes in the cash conversion cycle6. Underestimating working capital investment7. Valuing a stock using the calculated beta8. Choosing an unreasonable cost of equity9. Not properly fading return on invested capital
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