The Little Book of Valuation

Guide to making accurate business valuations based on investing metrics that matter

In The Little Book of Valuation: How to Value a Company, Pick a Stock, and Profit, professor and economist Aswath Damodaran guides readers through the fundamentals and step-by-step process of picking winning companies to invest in. In the book, you'll learn how to make your own accurate valuation assessments, avoiding common pitfalls and mistakes along the way.

From widespread misunderstandings to undeniable truths in valuation, the author covers exactly where to turn your attention to when assessing a company's value based on a myriad of factors, with stories and real examples included throughout to prepare you for any modern investing challenge you may find yourself facing. You'll also learn:

• Simple but extremely effective valuation tools and formulas for success
• The complex relationship between assets, debt, equity, and business value
• Special market considerations regarding valuation that require a dynamic approach

Rather than relying on third-party sources—often drawing from the same public information that you have access to, but getting it wrong—The Little Book of Valuation, Updated Edition gives readers all the insight and practical tools they need to cut through the noise and arrive at their own accurate valuations, pick profitable stocks, and establish successful long-term portfolios.

Keywords: business valuations, investing, business debt, business equity, company valuation, investing valuation, how to pick a stock, portfolio management, valuation tools, valuation formulas, market timing, intrinsic valuation, cash flow