Book Name: The Little Book Of Valuation
Book Tagline: How to Value a Company, Pick a Stock and Profit
Originally published: 29 March, 2011
Author: Aswath Damodaran
Publisher: Wiley & Sons
Genre: Economics, Finance
The Little Book Of Valuation is the best resource you will come across for learning the basics of investment. Author Damodaran, outlines the most common query how to identify and value a company. Reading this book, you’ll learn to calculate the worth of seven different types of businesses on an intrinsic.
Aswath Damodaran is a finance professor at the Stern School of Business in New York University. His subjects are corporate finance and equity valuation. He has written several other books on valuation, corporate finance and investment management.
The main abstract of The Little Book Of Valuation highlights – if you want to become a accomplished investor, then you should have a good knowledge of how to evaluate a business.
Here are 7 takeaways that highlights the inside of the book-
- Damodaran has targeted finance professionals and individuals who are good at mathematical equation.
- Beginners (who don’t have any exposure to elementary finance) may find this book slightly difficult to plough through. But for people who are professional in these field, it would be like to learn the art of equity investing.
- Even though valuation models can be elaborate, but not all variables are equally important.
- Some variables are more significant than the previous one. If you identify those two variables in a business, and properly examine the relevant information on them, you can assess the firm’s true value with reasonable accuracy.
- The author also examines the different between intrinsic and relative valuation.
- He touches the most important concept, value of time and money.
- Explaining the concept of how to carry out discounted cash flow valuation.