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.
Hit the Ground Running - Valuation Basics
Chapter One Value - More Than a Number! 3
Chapter Two Power Tools of the Trade 13
Chapter Three Yes, Virginia, Every Asset Has an Intrinsic Value 35
Chapter Four It’s All Relative! 59
From Cradle to Grave - Life Cycle and Valuation
Chapter Five Promise Aplenty 83
Chapter Six Growing Pains 105
Chapter Seven Valuation Viagra 125
Chapter Eight Doomsday 143
Breaking the Mold - Special Situations in Valuation
Chapter Nine Bank on It 163
Chapter Ten Roller-Coaster Investing 185
Chapter Eleven Invisible Value 203
Conclusion Rules for the Road 225