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Guide to making accurate business valuations based on investing metrics that matter
In The Little Book of Valuation: How to Value a Company, Pick a Stock, and Profit, professor and economist Aswath Damodaran guides readers through the fundamentals and step-by-step process of picking winning companies to invest in. In the book, you'll learn how to make your own accurate valuation assessments, avoiding common pitfalls and mistakes along the way.
From widespread misunderstandings to undeniable truths in valuation, the author covers exactly where to turn your attention to when assessing a company's value based on a myriad of factors, with stories and real examples included throughout to prepare you for any modern investing challenge you may find yourself facing. You'll also learn:
* Simple but extremely effective valuation tools and formulas for success
* The complex relationship between assets, debt, equity, and business value
* Special market considerations regarding valuation that require a dynamic approach
Rather than relying on third-party sources--often drawing from the same public information that you have access to, but getting it wrong--The Little Book of Valuation, Updated Edition gives readers all the insight and practical tools they need to cut through the noise and arrive at their own accurate valuations, pick profitable stocks, and establish successful long-term portfolios.
List of contents
Foreword ix
Hit the Ground Running--Valuation Basics
Chapter One Value--More than a Number! 3
Chapter Two Power Tools of the Trade 15
Chapter Three Yes, Virginia, Every Asset Has an Intrinsic Value 43
Chapter Four It's All Relative! 77
Chapter Five Stories and Numbers 105
From Cradle to Grave--Life Cycle and Valuation
Chapter Six Promise Aplenty 139
Chapter Seven Growing Pains 167
Chapter Eight Valuation Viagra 197
Chapter Nine Doomsday 219
Breaking the Mold--Special Situations in Valuation
Chapter Ten Bank on It 241
Chapter Eleven Roller Coaster Investing 267
Conclusion Rules for the Road 289
About the author
Aswath Damodaran, is a professor of finance and David Margolis teaching fellow at the Stern School of Business at New York University. He teaches the corporate finance and equity valuation courses at NYU, and he offers online versions on his website. He has written books on valuation, corporate finance and investments, directed primarily at practitioners.
Summary
Guide to making accurate business valuations based on investing metrics that matter
In The Little Book of Valuation: How to Value a Company, Pick a Stock, and Profit, professor and economist Aswath Damodaran guides readers through the fundamentals and step-by-step process of picking winning companies to invest in. In the book, you'll learn how to make your own accurate valuation assessments, avoiding common pitfalls and mistakes along the way.
From widespread misunderstandings to undeniable truths in valuation, the author covers exactly where to turn your attention to when assessing a company's value based on a myriad of factors, with stories and real examples included throughout to prepare you for any modern investing challenge you may find yourself facing. You'll also learn:
* Simple but extremely effective valuation tools and formulas for success
* The complex relationship between assets, debt, equity, and business value
* Special market considerations regarding valuation that require a dynamic approach
Rather than relying on third-party sources--often drawing from the same public information that you have access to, but getting it wrong--The Little Book of Valuation, Updated Edition gives readers all the insight and practical tools they need to cut through the noise and arrive at their own accurate valuations, pick profitable stocks, and establish successful long-term portfolios.
