The Little Book of Valuation Quotes

“Growth requires reinvestment.”
― Aswath Damodaran, The Little Book of Valuation: How to Value a Company, Pick a Stock and Profit

“A firm can have value only if it ultimately delivers earnings.”
― Aswath Damodaran, The Little Book of Valuation: How to Value a Company, Pick a Stock and Profit

“Einstein was right about relativity, but even he would have had a difficult time applying relative valuation in today's stock markets.”
― Aswath Damodaran, The Little Book of Valuation: How to Value a Company, Pick a Stock, and Profit

“The intrinsic value of an asset is determined by the cash flows you expect that asset to generate over its life and how uncertain you feel about these cash flows.”
― Aswath Damodaran, The Little Book of Valuation: How to Value a Company, Pick a Stock and Profit

“Avoid companies that are cavalier about issuing new options to managers”
― Aswath Damodaran, The Little Book of Valuation: How to Value a Company, Pick a Stock and Profit

“Growth firms get more of their value from investments that they expect to make in the future and less from investments already made.”
― Aswath Damodaran, The Little Book of Valuation: How to Value a Company, Pick a Stock and Profit

“In the intrinsic valuation chapter, we observed that the value of a firm is a function of three variables—its capacity to generate cash flows, its expected growth in these cash flows, and the uncertainty associated with these cash flows.”
― Aswath Damodaran, The Little Book of Valuation: How to Value a Company, Pick a Stock and Profit

“Success in investing comes not from being right but from being wrong less often than everyone else.”
― Aswath Damodaran, The Little Book of Valuation: How to Value a Company, Pick a Stock and Profit

“pero si compras un activo financiero lo haces por los flujos de caja que esperas recibir.”
― Aswath Damodaran, El pequeño libro de la valoración de empresas: Cómo valorar una compañía, elegir una acción y obtener ganancias

“Do not be afraid to make mistakes.”
― Aswath Damodaran, The Little Book of Valuation: How to Value a Company, Pick a Stock and Profit

“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.”
― Aswath Damodaran, The Little Book of Valuation: How to Value a Company, Pick a Stock and Profit

“The right price: Great growth companies can be bad investments at the wrong price. While multiples such as PEG ratios have their limitations, use them (low PEG ratios) to screen for companies that are cheap.”
― Aswath Damodaran, The Little Book of Valuation: How to Value a Company, Pick a Stock and Profit