The Little Book of Valuation

A prudent investor needs to value the investment they are considering before buying it. Therefore valuation is at the heart of any investment decision, whether that decision is to buy, sell, or hold. The average investor has a less intense need for details and is more interested in learning valuation basics that he or she can apply quickly to investments. Using important yet uncomplicated valuation techniques, one can make better investment decisions when reviewing stock research reports and engaging in independent efforts to value and select stocks for a portfolio.

In his new book, The Little Book of Valuation: How to Value a Company, Pick a Stock, and Profit, financial expert Aswath Damodaran distills the fundamentals of valuation, without glossing over or ignoring key concepts, and develops models that readers can easily understand and implement. He also makes the case that the two popular, and often divergent, approaches (intrinsic and relative) to valuation can be used in tandem. Damodaran discusses how both of these approaches can significantly improve one’s odds by helping to select stocks that are undervalued not only on an intrinsic level but also on a relative basis.

Once becoming familiar with the techniques outlined in this book, readers will be able to value a company with confidence. In addition, The Little Book of Valuation:  

• Includes illustrative case studies and examples that will help develop valuation skills
• Puts readers in a better position to determine which investments are on track to add real value to a portfolio
• Offers valuable valuation insights from one of the foremost experts in this field

Written with the individual investor in mind, this reliable guide will not only allow readers to value a company quickly, but will also help make sense of valuations done by others or found in comprehensive equity research reports. In addition, this definitive “how-to” book of valuation’s approach is one that the average investor can use to value stocks immediately, with a companion website that makes understanding stock valuations easy and intuitive.