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Corporate Valuation
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Corporate Valuation
Theory, Evidence, & Practice

Third Edition
September 2026 | Cambridge Business Publishers
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Corporate Valuation: Theory, Evidence & Practice, Third Edition by Robert W. Holthausen and Mark E. Zmijewski is a definitive guide to valuing companies, businesses, and securities using the tools professionals rely on in real decision-making. Blending theory with empirical evidence, the book translates valuation frameworks into practical, step-by-step methods illustrated with real company data. Widely used in undergraduate, MBA, and professional programs at leading institutions, it equips readers with the skills needed to succeed in careers across finance, accounting, investment banking, and corporate strategy. Trusted for decades by academics and practitioners alike, this text also serves as an essential field guide long after graduation.

Corporate Valuation: Theory, Evidence & Practice has been the industry standard on valuation for over two decades, well before it was widely available. The corporate valuation course based on this book is one of the few unstated requirements for graduates of The Wharton School that hope to enter into the field of finance. Having hired dozens of Wharton alumni who have learned valuation from this book, I cannot imagine a

more thorough guide or a better reference to learn valuation. - Ben Frost, Goldman Sachs 

Ben Frost
Goldman Sachs
This book contains everything one needs to know to properly value a company. It covers the financial theory of investment analysis, the accounting notions needed to understand, analyze, and forecast financial statements, and many techniques for creating a financial model yielding a rigorous estimate of firm value. It does all that while also providing readers with interesting anecdotes and detailed real-world examples. It is excellent both as the main text for a valuation course, and as the primary reference for practitioners on Wall Street. - Vincent Glode, Professor of Finance, The Wharton School, University of Pennsylvania
Vincent Glode
University of Pennsylvania
Key features
Key Features: 

  • Integration of Accounting and Finance: Unlike traditional finance texts, the book explicitly integrates accounting detail with valuation theory, helping students understand not only what models to use, but how the underlying financial statements drive valuation outcomes, which is a critical skill for workplace success.

  • Step-by-Step, Practice-Driven Valuation Frameworks: Valuation concepts are taught through clear, sequential processes so students can confidently implement valuation methods.

  • Comprehensive yet Flexible Structure: From a 5-day course to a 15-week semester, the modular six-part organization allows instructors to tailor coverage, omitting or emphasizing technical depth as appropriate, while still maintaining a coherent valuation narrative from fundamentals to advanced applications.

  • Real-World Data and Applied Examples Throughout
    Every chapter incorporates real companies, SEC filings, and transaction data, supported by detailed “Valuation in Practice” examples that bridge theory and decision-making in contexts such as M&A, leveraged buyouts, and cross-border valuation.

  • Strong Pedagogical Support for Skill Development
    Valuation Keys, in-chapter review exercises with solutions, and end-of-chapter problems reinforce learning and support students with limited prior exposure, making complex valuation concepts accessible without oversimplifying them.

New to This Edition: 

  • Completely Updated Data & Empirical Analyses: Every chapter reflects the latest financial markets, including updated industry beta estimates, risk premiums, cost of capital inputs, credit ratings, default data, private equity activity, and M&A deal trends throughout the book.

  • Coverage of the 2025 One Big Beautiful Bill Act (OBBBA)
    Integrated discussion of the OBBBA and changes from the 2017 Tax Cuts and Jobs Act (TCJA), and how they impact the tax deductibility of interest, the taxation of U.S. multinationals, and more. 

  • Latest Accounting Standards: Expanded treatment of lease accounting and other rule changes, with clear, worked examples showing how new standards affect financial analysis, free cash flows, and the cost of capital.

  • Streamlined Chapters with Stronger Explanations: Key chapters reorganized and enhanced based on student feedback, such as the cost of debt, cross-border valuation, and international applications, with more examples and clearer guidance.

  • More Real Companies, More Hands-On Practice: New and expanded examples featuring firms like Apple, Amazon, Tesla, Home Depot, Lumen, and Mattel, plus additional end-of-chapter problems that sharpen real-world valuation skills.