Goodreads helps you keep track of books you want to read.
Start by marking “The Little Book of Valuation: How to Value a Company, Pick a Stock and Profit” as Want to Read:
The Little Book of Valuation: How to Value a Company, Pick a Stock and Profit
Enlarge cover
Rate this book
Clear rating
Open Preview

The Little Book of Valuation: How to Value a Company, Pick a Stock and Profit

3.86  ·  Rating Details ·  336 Ratings  ·  21 Reviews
An accessible, and intuitive, guide to stock valuation Valuation is at the heart of any investment decision, whether that decision is to buy, sell, or hold. In The Little Book of Valuation, expert Aswath Damodaran explains the techniques in language that any investors can understand, so you can make better investment decisions when reviewing stock research reports and enga ...more
ebook, 256 pages
Published March 29th 2011 by Wiley (first published March 21st 2011)
More Details... edit details

Friend Reviews

To see what your friends thought of this book, please sign up.

Reader Q&A

To ask other readers questions about The Little Book of Valuation, please sign up.

Be the first to ask a question about The Little Book of Valuation

This book is not yet featured on Listopia. Add this book to your favorite list »

Community Reviews

(showing 1-30)
filter  |  sort: default (?)  |  Rating Details
Feb 13, 2016 Nargizazimli rated it really liked it
comparatively light and fun read on valuation of companies. relevant for mba students, or any person dealing with financial issues, investment and stock prices in particular.
Aug 02, 2015 Helen rated it liked it
Shelves: e-books, inv-fin, lib
This is a great book for the experienced or advanced stock market investor, but not so great for the beginner or casual investor. It's too technical and reads like an economics textbook or a math book with complex equations and formulas.

I rated this book 3 stars, not because it's an average book, but because it focuses specifically on valuation (as the title states), which is not what I'm interested in at this time. However, it's a great reference book and I'm sure I'll be returning to it in th
Effendy Yahaya
Oct 14, 2014 Effendy Yahaya rated it it was amazing
i love it! for all the varies in valuation method, it emphasis on what you are really keen on to assess for certain organization. Key valuation on whether intrinsic of relative value bring more towards assessing risk that affects value. Adjusted PE ratios and ammortized R&D must be taken seriously towards proper weight in both valuation and demand by market value, highly to be considered. "Look at the past, and the think about the future!" Thanks Aswath!
Aug 22, 2015 Terry rated it really liked it
Shelves: investing
Nice little book of valuation 101. Prof. Damodaran explains the basic valuation methods very clearly. The chapters on how to value financial companies and cyclical companies are also necessary to know for new investors (no matter whether you cover financials and cyclicals or not).
Kevin Conde
Apr 08, 2015 Kevin Conde rated it it was amazing
Shelves: business
Very good overview of different valuation strategies for different types of companies. Provides the perfect place to delve further into valuation methods and start performing them myself.
Hariharan Ragunathan
Best beginner book to understand valuing companies - Intrinsic & relative valuation of companies across across different life cycle of companies.
Pranjal Bhatia
Apr 16, 2015 Pranjal Bhatia rated it it was amazing
Fast Forward version of Damodaran on Valuation -- Must read for all wannabe investors
Christopher Durand
Mar 04, 2015 Christopher Durand rated it really liked it
Very brief but contains tons of information. An absolute must if your interested in valuation.
Alex Gleason
Apr 16, 2015 Alex Gleason rated it liked it
Three and a half. Really good.
Sanjay Jhaveri
Good book!
This is a very good summary of valuation techniques for investment purposes, but after the introduction it reads like a textbook. Thank heavens it's short! Thy dry writing is in part due to its efficiency; this would be a good book to use for reference unless you already have references you like for this. The chapters cover the basic approaches to valuing companies that are young, growing, stable, and declining, as well as adjustments for companies in special categories such as financial service ...more
Cody Ray
May 23, 2016 Cody Ray rated it liked it
Pretty good little introduction to business valuation. The basic framework follows how to value companies in different stages of their lifecycle from young growth through mature and a couple "special topics" in financial companies and cyclical companies. I appreciate the outline for intrinsic valuations (as well as relative) and the different adjustments (the "art") that may be made. However, I felt that it was still a lot of handy-wavy and there a lot of "gaps" in their derivations of valuation ...more
Sep 07, 2016 Muhammad rated it did not like it
Perhaps because it was trying to be a "little book" this title by Damodaran failed to elaborate on topics that needed them the most. Important fundamental concepts such a relative valuation metrics, and measurements of volatility, are being glanced over quickly in a very rudimentary manner. Examples and illustrations are also far and few between, Readers looking for a more comprehensive discussion on valuation techniques will fare better reading them on a financial wiki page.
Laurel Cull
Jan 15, 2016 Laurel Cull rated it it was amazing  ·  review of another edition
Loved it

Of all the books on value investing I have read, this one has moved to the top. Not only are the formulas included but he explains why he is using certain measures instead of others. He also explains very well the difference between valuing the business or valuing the equity in the business.
Sep 27, 2011 Kelly rated it liked it
Damodaran is the ultimate valuation guru. I have read his super in-depth valuation tomes, and I have loved them. However, this short version is packed with great reminders of best practice. This is great stuff.
Jeremy Reeves
Jun 23, 2013 Jeremy Reeves rated it really liked it
Good stuff for more advanced investors. A little too advanced for me which made it hard to read, but that's how you grow :)
May 09, 2013 Bruceschneider21 rated it it was ok
The book was a bit over my head. This is one that would take a lot of study to really benefit the investor.
Vikas Kukreja
Dec 20, 2012 Vikas Kukreja rated it really liked it
It's one of those book which have lot of substance an very few words. It's for those who already are into investing and needs to advance.
Christopher Benassi
Sep 11, 2013 Christopher Benassi rated it it was amazing
Great valuation overview.
Joe Importico
Joe Importico rated it liked it
Dec 16, 2014
Gaspar rated it liked it
Oct 16, 2016
Saurabh Audichya
Saurabh Audichya rated it it was amazing
Feb 16, 2016
Raevin Daniel
Raevin Daniel rated it it was amazing
Sep 28, 2015
John Shepard
John Shepard rated it liked it
May 28, 2015
Thinh Pham
Thinh Pham rated it liked it
Aug 10, 2016
Joey Makol
Joey Makol rated it really liked it
May 22, 2016
Haapanen Perttu
Haapanen Perttu rated it it was ok
Jul 11, 2016
Varun Rajwade
Oct 25, 2016 Varun Rajwade rated it really liked it
A superb summary of valuation techniques. its like a ready reckoner for anyone interested in this field. Does it replace the original Damodaran on Valuation? Absolutely not, but this book is a quick guide for someone without the time or inclination to go through the original.
Aurora rated it it was amazing
Mar 14, 2015
Pronita Ganguly
Pronita Ganguly rated it it was amazing
Jun 09, 2016
« previous 1 3 4 5 6 7 8 9 10 11 12 next »
There are no discussion topics on this book yet. Be the first to start one »
  • The Little Book That Builds Wealth: The Knockout Formula for Finding Great Investments
  • The Little Book of Value Investing
  • The Manual of Ideas: The Proven Framework for Finding the Best Value Investments
  • Warren Buffett and the Interpretation of Financial Statements: The Search for the Company with a Durable Competitive Advantage
  • Quality of Earnings
  • There's Always Something to Do: The Peter Cundill Investment Approach
  • The Investment Checklist: The Art of In-Depth Research
  • The Invisible Hands: Hedge Funds Off the Record - Rethinking Real Money
  • The Interpretation of Financial Statements: The Classic 1937 Edition
  • Best Practices for Equity Research Analysts: Essentials for Buy-Side and Sell-Side Analysts
  • The Little Book of Bull Moves in Bear Markets: How to Keep Your Portfolio Up When the Market Is Down
  • The Little Book of Behavioral Investing: How Not to Be Your Own Worst Enemy
  • More Than You Know: Finding Financial Wisdom in Unconventional Places
  • Expected Returns: An Investor's Guide to Harvesting Market Rewards
  • Valuation: Measuring and Managing the Value of Companies
  • Pioneering Portfolio Management: An Unconventional Approach to Institutional Investment
  • Contrarian Investment Strategies: The Classic Edition
  • The Little Book of Bulletproof Investing: Do's and Don'ts to Protect Your Financial Life
Aswath Damodaran is a Professor of Finance at the Stern School of Business at New York University (Kerschner Family Chair in Finance Education), where he teaches corporate finance and equity valuation. He is best known as author of several widely used academic and practitioner texts on Valuation, Corporate Finance, and Investment Management.
More about Aswath Damodaran...

Share This Book

“Success in investing comes not from being right but from being wrong less often than everyone else.” 0 likes
“When a company is paying out more in dividends, it is retaining less in earnings; the book value of equity increases by the retained earnings.” 0 likes
More quotes…