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

3.93  ·  Rating details ·  878 ratings  ·  47 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 ...more
ebook, 256 pages
Published March 29th 2011 by Wiley (first published March 21st 2011)
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Average rating 3.93  · 
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Joff Panos
Mar 12, 2017 rated it it was amazing
Reader-friendly and filled with profound thoughts. I learned a lot from reading this book; learnings that I can apply directly to my job as a valuations staff/ financial modeler.
Ashutosh
Mar 01, 2017 rated it really liked it
As the popular saying goes 'All good things come in small packages', and this 'little' book is it's prime example. This is great for anyone who wishes a quick introduction to valuation which is one of the fundamental pillars of investing. The author has neatly covered all the sectors by illustrating examples of a growth company, cyclical company, established company/conglomerate and company with intangible assets.
Though Mr.Damodaran has tried his best to keep things as simple as possible, any
...more
Jacob
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 ...more
Cody Ray
Apr 03, 2015 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 ...more
Niel
Nov 20, 2016 rated it really liked it
Damodaran is well respected in the Corporate Finance and Valuation world. I've read very technical and lengthy books that he has written but this book is more geared to a wider range of reader, not just Corporate Finance and Valuation professionals.

He gives great insight into intrinsic and relative valuation techniques and drills down into various classes and types of firms and how to approach a valuation. Overall the tone of the book favours the fundamental investing approach, which I also
...more
Iuri Colares
Dec 14, 2016 rated it really liked it  ·  review of another edition
Avaliação sintética e pragmática

O autor faz uma síntese objetiva e pragmática dos métodos de avaliação do valor intrínseco do fluxo de caixa descontado e do valor relativo dos múltiplos do mercado. O grande destaque são as considerações acerca dos dois métodos em empresas nos quatro estágios do ciclo de vida: iniciantes, em crescimento, maduras e em declínio. E destaca ainda empresas de ativos intangíveis.

Recomendo para todos interessados em comprar ou vender ações de empresas públicas ou
...more
Ridzwan
Aug 18, 2016 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 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.
Varun Rajwade
Oct 25, 2016 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.
Kelly
Sep 13, 2011 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.
F Luna
Sep 02, 2016 rated it really liked it  ·  review of another edition
Its a great tool

Bruceschneider21
Jan 22, 2013 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 14, 2012 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.
Gustavo Moura
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Jul 13, 2017
Christopher Benassi
Nov 13, 2012 rated it it was amazing
Great valuation overview.
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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.
“Einstein was right about relativity, but even he would have had a difficult time applying relative valuation in today's stock markets.” 3 likes
“Growth requires reinvestment.” 2 likes
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