Investing For Beginners

Investing For Beginners is a series of articles, resources, and other information about basic investments, value investing, quantitative research and other ideas.

Book Review: Investment Valuation by Aswath Damodaran

Investment Valuation

Tools and Techniques for Determining the Value of any Asset, University Edition 3rd Edition

There's been much written about the topic of stock valuation and it can be difficult to keep up with all of it. If you are interested in learning everything there is to know about value investing then I can truly recommend the book "Investment Valuation" as the best book to own.  If you don't have any experience in financial valuation then this book will give you a comprehensive understanding of what investment professionals are doing in the field.

Professor Aswath Damodaran provides a very thorough and well written text book with all of the latest valuation theories.  Be prepared to digest a huge amount of information and mathematical formulations as it is written for university-level finance students.

This book provides the most current valuation tools to guide you through the theory and application of various valuation models supported by real-world examples and exercises at the end of each chapter. Quite often in financial forecasting and valuation there are multiple options, each with trade-offs and judgment calls. The author lays out the choices, discusses the pros and cons, and leaves it to the reader to decide among the alternatives. He provides many applied examples, so the reader can see these sorts of judgment calls being repeatedly made and put into practice.

The only criticism I have of this book is the length (990+ pages) and amount of material which tends to be a bit overwhelming on first read.

Aswath Damodaran teaches corporate finance and valuation at the Stern School of Business at New York University does a great job in summarizing the accumulated theoretical wisdom and discussing issues that come up in terms of practical application. 

Rating:  5 Stars