Valuation Book
The Science of Valuation in Private Markets
How to think about valuation when you buy to sell
In public markets, valuation is about finding mispricing. In private markets, it is about justifying an offer price.
Private market investors do not ask “what is this worth?” They ask: “what can I pay and still deliver the return I promised?”
This book explains the economic logic behind that shift.
Across venture capital, growth equity, real estate, infrastructure, and buyouts, traditional valuation tools break down. What replaces them is a disciplined framework that links:
- business plan
- capital structure
- exit assumptions
- required return
to a single number: the maximum price you are willing to pay.
Why this book is different
Most books teach valuation as if prices are discovered. In private markets, prices are constructed.
- why promised return thinking dominates
- how valuation becomes a constraint, not an estimate
- where common (and costly) mistakes come from
- how generative AI will change modelling
Who this is for
- students trying to understand private markets
- LPs who want to challenge GPs
- practitioners who want a cleaner mental model
- anyone confused by how deals are actually priced