The Little Book of Valuation
by Aswath Damodaran
The NYU valuation professor's short course: intrinsic and relative valuation, cash flows, growth, risk, and how to value young, mature and declining companies, banks and cyclicals. Compact, rigorous and the best short introduction to doing the numbers properly.
Read it if…
you want to value a company yourself rather than take a screen's word for it.
Skip it if…
you dislike arithmetic; the whole book is arithmetic.
Three things you will actually use
- Value is cash flows, growth and risk, nothing else.
- Relative valuation is only as good as the comparables.
- Young companies are valued on story and checked on numbers.
Do this first
Value one company you follow using the intrinsic method, then compare with its price.
Our verdict
Valuation, properly and briefly.
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