The Little Book of Valuation – How to Value a Company, Pick a Stock, and Profit How to Value a Company, Pick a Stock, and Profit

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 engaging in independent efforts to value and pick stocks.

Page by page, Damodaran distills the fundamentals of valuation, without glossing over or ignoring key concepts, and develops models that you can easily understand and use. Along the way, he covers various valuation approaches from intrinsic or discounted cash flow valuation and multiples or relative valuation to some elements of real option valuation.
* Includes case studies and examples that will help build your valuation skills
* Written by Aswath Damodaran, one of today's most respected valuation experts
* Includes an accompanying iPhone application (iVal) that makes the lessons of the book immediately useable

Written with the individual investor in mind, this reliable guide will not only help you value a company quickly, but will also help you make sense of valuations done by others or found in comprehensive equity research reports.

One valuation book stands out as withstanding the test of time among investors and students of financial markets: Investment Valuation. That book discusses how best to value companies and securities. Damodaran's other books on valuation are directed primarily at analysts and practitioners, whose interests lie primarily in the practice of valuation. Consequently, they are filled with detail that are useful to trained financial analysts, but not to individual investors. The average investor has a less intense need for valuation details and is more interested in learning valuation basics that he or she can apply quickly to investments-and to fundamental research reports they read about companies. In The Little Book of Valuation, Prof. Aswath Damodaran will distil the fundamentals of valuation (without glossing over or ignoring key components) and develop models that investors can understand easily and use quickly (with relatively few inputs). In the process, he will aim to cover all of the different approaches - intrinsic or discounted cash flow valuation, multiples or relative valuation and even some elements of real option valuation. Readers will not only value a company quickly but will also be able to look at valuations done by others or equity research reports and discern whether they make sense. Damodaran will complement the book with iVal, an iPhone/iPad app that makes understanding stock valuations easy and intuitive.

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 engaging in independent efforts to value and pick stocks. Page by page, Damodaran distills the fundamentals of valuation, without glossing over or ignoring key concepts, and develops models that you can easily understand and use. Along the way, he covers various valuation approaches from intrinsic or discounted cash flow valuation and multiples or relative valuation to some elements of real option valuation. Includes case studies and examples that will help build your valuation skills Written by Aswath Damodaran, one of today's most respected valuation experts Includes an accompanying iPhone application (iVal) that makes the lessons of the book immediately useable Written with the individual investor in mind, this reliable guide will not only help you value a company quickly, but will also help you make sense of valuations done by others or found in comprehensive equity research reports.