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The Little Book of Valuation: How to Value a Company, Pick a Stock and Profit
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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
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ebook, 256 pages
Published
March 29th 2011
by Wiley
(first published March 21st 2011)
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Good stuff for more advanced investors. A little too advanced for me which made it hard to read, but that's how you grow :)
A good read for understanding basic principles of valuation of a company.
Crisp, clear, easy to understand, limited usage of jargons, covering all the scenarios and different types of companies. Just basic knowledge of finance required to understand, very practical cases explained.
Crisp, clear, easy to understand, limited usage of jargons, covering all the scenarios and different types of companies. Just basic knowledge of finance required to understand, very practical cases explained.
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 ...more
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 ...more
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!
Aswath Damodaran does a good job of introducing the different concepts of valuation and describes well and with examples how to use these different valuation methods in practice. Might be a somewhat overwhelming if that's the first thing you read on valuation, as this little book is packed with information.
A great resource and an enjoyable read for non-finance folks and anyone interested in investments. The author makes complex concepts into easily understandable short paragraphs, while giving concrete examples and comparisons between different approaches.
Very brief but contains tons of information. An absolute must if your interested in valuation.
Best beginner book to understand valuing companies - Intrinsic & relative valuation of companies across across different life cycle of companies.
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.
Three and a half. Really good.
Fast Forward version of Damodaran on Valuation -- Must read for all wannabe investors
The Little Book of Valuation by Aswath Damodaran gives comprehensive overview of factors that needs to be taken into account for valuation of a company while investing. The book gives immense value in terms of understanding valuation of a company.
Value investing is the discipline of buying securities at significant discount from their current values and holding them until more of their values is realized. Valuing a company/business is the most important aspect of investing. It’s a daunting task. ...more
Value investing is the discipline of buying securities at significant discount from their current values and holding them until more of their values is realized. Valuing a company/business is the most important aspect of investing. It’s a daunting task. ...more
The title is a misnomer, as the author spends no time on stock picking. He does break down several valuation methods and suggests which might be most relevant in various situations as companies grow, mature and decline.
There is not much discussion of earnings or cash flow based multiples and their application to various sectors, as he prefers the bottom up, discounted cash flow models that comprise the bulk of the book. These are more rigorous but are also rife with assumptions.
Despite the ...more
There is not much discussion of earnings or cash flow based multiples and their application to various sectors, as he prefers the bottom up, discounted cash flow models that comprise the bulk of the book. These are more rigorous but are also rife with assumptions.
Despite the ...more
I'm In plant operations for a developing world company. Our challenges is valuing our internal investments and justifying the manhours in process and system improvement this book is instrumental in making me more capable in valueing equipment, processes, and skills - things a low Biz process maturity company needs to prioritize improvements to justify investments in time and effort.
Of course it's one thing if one person understands such concepts it's another if the board can see the utility of ...more
Of course it's one thing if one person understands such concepts it's another if the board can see the utility of ...more
The book has a few interesting points on business valuations here and there in bits and pieces. Author has used a lot of formulas to be used while valuing a company - something that put me off. If I have to pick one chapter to read from this book, it'd be the last one - valuation of firms with intangible assets.
An overview into the concept of valuing companies. This book is a good first read for someone trying to understand the basics of valuation. While the examples in the book are only hypothetical, they help explain the basic things to keep in mind while attempting valuations. This clarifies that valuations aren't an exact science but estimates and could vary from person to person.
I think that it's interesting given the fact that valuing companies it's hard job and there are thousand ways and approach. It's a nice attempt from Aswath to do that, but I think that unfortunately the result it's even more confusing and puzzling.
Damodaran is an oustanding teacher and mentor with incredible ability to share his knowledge. I would have preferred to see more examples and case studies but this is largely offset by all the blogs, other books and models built and shared by Mr. Damodaran with the public.
I've read both, this version as well as the first draft of the book and the latter is much better since it has what it says. This final version is a bit too jazzy and has unnecessary metaphors and illustrations.
To many math-formulas for me as an hobby-investor. Prefer quant-investing..!
Brief and interesting for an MBA Finance student.
A decent base in Finance is required to fully comprehend the content of the book.
Damodaran tried to cram as much as possible in to this small book. I found it too brief for any clear understanding of concepts. I will recommend his online lectures or his valuation textbook.
A nice and handy book to explore valuation options for various category of companies!
Great read to understand valuation of companies for investing. Professor Aswath Damodaran is awesome.
Must read for all investors
Nice details but you should read it more than once. And I am sure each time you will find something useful
Nice details but you should read it more than once. And I am sure each time you will find something useful
This book is written by Aswath freaking Damordaran! That’s all you need to know.
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.
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
Though Mr.Damodaran has tried his best to keep things as simple as possible, any ...more
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
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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.
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“Einstein was right about relativity, but even he would have had a difficult time applying relative valuation in today's stock markets.”
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“Growth requires reinvestment.”
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