12 books like Investment Valuation

By Aswath Damodaran,

Here are 12 books that Investment Valuation fans have personally recommended if you like Investment Valuation. Shepherd is a community of 11,000+ authors and super readers sharing their favorite books with the world.

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Book cover of Investment Banking: Valuation, LBOs, M&A, and IPOs

Michael Samonas Author Of Financial Forecasting, Analysis and Modelling: A Framework for Long-Term Forecasting

From my list on financial modelling and valuation.

Why am I passionate about this?

I come from an engineering background and early in my career I discover financial modelling as I had to assess the viability of business plans. I deal with financial models the last 20 years of my professional carrier as a Group Financial Officer of SIDMA STEEL SA. Moreover, I am teaching financial modelling in the American College of Greece, Deree, at University of Nicosia in collaboration with Globaltraing and many other places abroad. I am a numbers person, and I am fascinated by financial modelling as it provides you a tool to support effective decision-making. 

Michael's book list on financial modelling and valuation

Michael Samonas Why did Michael love this book?

This book is one of the best I have seen on the topic of Investment Banking.

It is a very good primer. I would recommend it to everyone wanting to break into the industry. It is highly accessible, easy to understand and overall, an engaging presentation of the topic.

It is one of the books I consulted to write the valuation chapter of my book.

By Joshua Rosenbaum, Joshua Pearl,

Why should I read it?

1 author picked Investment Banking as one of their favorite books, and they share why you should read it.

What is this book about?

A timely update to the global bestselling book on investment banking and valuation - this new edition reflects valuable contributions from Nasdaq and the global law firm Latham & Watkins LLP plus access to the online valuation models and course.

In the constantly evolving world of finance, a solid technical foundation is an essential tool for success. Due to the fast-paced nature of this world, however, no one was able to take the time to properly codify its lifeblood--namely, valuation and dealmaking. Rosenbaum and Pearl originally responded to this need in 2009 by writing the first edition of the book…


Book cover of Valuation: Measuring and Managing the Value of Companies

Michael Samonas Author Of Financial Forecasting, Analysis and Modelling: A Framework for Long-Term Forecasting

From my list on financial modelling and valuation.

Why am I passionate about this?

I come from an engineering background and early in my career I discover financial modelling as I had to assess the viability of business plans. I deal with financial models the last 20 years of my professional carrier as a Group Financial Officer of SIDMA STEEL SA. Moreover, I am teaching financial modelling in the American College of Greece, Deree, at University of Nicosia in collaboration with Globaltraing and many other places abroad. I am a numbers person, and I am fascinated by financial modelling as it provides you a tool to support effective decision-making. 

Michael's book list on financial modelling and valuation

Michael Samonas Why did Michael love this book?

It is the best reference guide on Valuations.

Includes a chapter on forecasting performance which is closely related to my book. It’s mainly focused on Discounted Cash Flow valuation adapted for many including banks, high-growth, cyclical companies, Emerging Markets, etc).

There exists also a version that gives access to the Excel spreadsheet that one can use to model future financial performance of companies and value them.

By McKinsey & Company Inc., Tim Koller, Marc Goedhart , David Wessels

Why should I read it?

1 author picked Valuation as one of their favorite books, and they share why you should read it.

What is this book about?

McKinsey & Company's #1 best-selling guide to corporate valuation-the fully updated seventh edition

Valuation has been the foremost resource for measuring company value for nearly three decades. Now in its seventh edition, this acclaimed volume continues to help financial professionals around the world gain a deep understanding of valuation and help their companies create, manage, and maximize economic value for their shareholders.

This latest edition has been carefully revised and updated throughout, and includes new insights on topics such as digital, ESG (environmental, social and governance), and long-term investing, as well as fresh case studies.

Clear, accessible chapters cover the…


Book cover of Expectations Investing: Reading Stock Prices for Better Returns

Michael Samonas Author Of Financial Forecasting, Analysis and Modelling: A Framework for Long-Term Forecasting

From my list on financial modelling and valuation.

Why am I passionate about this?

I come from an engineering background and early in my career I discover financial modelling as I had to assess the viability of business plans. I deal with financial models the last 20 years of my professional carrier as a Group Financial Officer of SIDMA STEEL SA. Moreover, I am teaching financial modelling in the American College of Greece, Deree, at University of Nicosia in collaboration with Globaltraing and many other places abroad. I am a numbers person, and I am fascinated by financial modelling as it provides you a tool to support effective decision-making. 

Michael's book list on financial modelling and valuation

Michael Samonas Why did Michael love this book?

Again, this is the kind of book that demonstrates practically how to forecast financial performance of a company and then value it.

It goes a step further and, as the title proclaims, the authors try to reverse engineer a price of a stock and match investors’ expectations with specific assumptions of the model. One of these assumptions is the growth period. This contrasts with the conventional practice of discounting a fixed growth period of five or ten years.

The book provides Excel models, backed up by the proper math, that are very helpful in deconstructing a share price to model assumptions and see if they are plausible or not.

By Michael J. Mauboussin, Alfred Rappaport,

Why should I read it?

1 author picked Expectations Investing as one of their favorite books, and they share why you should read it.

What is this book about?

Most investment books try to assess the attractiveness of a stock price by estimating the value of the company. Expectations Investing provides a powerful and insightful alternative to identifying gaps between price and value.

Michael J. Mauboussin and Alfred Rappaport suggest that an investor start with a known quantity, the stock price, and ask what it implies for future financial results. After showing how to read expectations, Mauboussin and Rappaport provide a guide to rigorous strategic and financial analysis to help investors assess the likelihood of revisions to these expectations. Their framework traces value creation from the triggers that shape…


Book cover of Pitch the Perfect Investment: The Essential Guide to Winning on Wall Street

Michael Samonas Author Of Financial Forecasting, Analysis and Modelling: A Framework for Long-Term Forecasting

From my list on financial modelling and valuation.

Why am I passionate about this?

I come from an engineering background and early in my career I discover financial modelling as I had to assess the viability of business plans. I deal with financial models the last 20 years of my professional carrier as a Group Financial Officer of SIDMA STEEL SA. Moreover, I am teaching financial modelling in the American College of Greece, Deree, at University of Nicosia in collaboration with Globaltraing and many other places abroad. I am a numbers person, and I am fascinated by financial modelling as it provides you a tool to support effective decision-making. 

Michael's book list on financial modelling and valuation

Michael Samonas Why did Michael love this book?

Very good book covering the full investment process from the valuation of a business, to identifying a mispricing, to recognizing potential biases, and finally adding a business into a portfolio.

The concepts the book is dealing with, are derived from the Value Investing School at Columbia University where both the authors teach. The main raison d'être somebody would like to build a financial model is to use it to value an asset or a company.

I highly recommend it for the practical tips it provides on the valuation process.

By Paul D. Sonkin, Paul Johnson,

Why should I read it?

1 author picked Pitch the Perfect Investment as one of their favorite books, and they share why you should read it.

What is this book about?

Learn the overlooked skill that is essential to Wall Street success Pitch the Perfect Investment combines investment analysis with persuasion and sales to teach you the "soft skill" so crucial to success in the financial markets. Written by the leading authorities in investment pitching, this book shows you how to develop and exploit the essential, career-advancing skill of pitching value-creating ideas to win over clients and investors. You'll gain world-class insight into search strategy, data collection and research, securities analysis, and risk assessment and management to help you uncover the perfect opportunity; you'll then strengthen your critical thinking skills and…


Book cover of Valuing a Business: The Analysis and Appraisal of Closely Held Companies

Joe Carlen Author Of The Einstein Money: The Life and Timeless Financial Wisdom of Benjamin Graham

From my list on understanding value investing and business value.

Why am I passionate about this?

As an investor and a professional business valuation specialist, I have a passion for understanding the true intrinsic value of both publicly-traded and closely-held (private) companies. There’s no denying that Warren Buffett, emulating the example of his mentor Benjamin Graham, applied a private company valuation approach to the selection of publicly-traded stocks and the results speak for themselves. Furthermore, given my somewhat technical educational and vocational background, I am more comfortable than most valuators with highly technical and IP-weighted businesses. That is why I consider IP valuation to be an integral element of business valuation. 

Joe's book list on understanding value investing and business value

Joe Carlen Why did Joe love this book?

Aside from valuing businesses for investment purposes, I am a practitioner of the valuation of private (or “closely held”) businesses. In my profession of business valuation, the late Shannon Pratt is widely recognized as one of the leading gurus, not least because of the six editions of Valuing a Business. I recommend this book here because, if one can master even a few of the rigorous business valuation methods detailed in this book, that will elevate one’s value investing skills tremendously. The previous books all set the stage and offer enough practical advice for one to progress from beginner to intermediate but, for those eager to master business valuation and, therefore, the determination of intrinsic value, Valuing a Business would be the next logical step. 

By Shannon P. Pratt, Alina V. Niculita,

Why should I read it?

1 author picked Valuing a Business as one of their favorite books, and they share why you should read it.

What is this book about?

Capitalize on All the Latest Legal, Financial, and ComplianceInformation Needed to Analyze and Appraise Any Business

For over 25 years, Valuing a Business has provided professionals and students with expert business valuation information, offering clear, concise coverage of valuation principles and methods. Over the decades, the book's unsurpassed explanations of all valuation issues have made it the definitive text in the field, against which every other business valuation book is measured.

Now updated with new legal, financial, and compliance material, the Fifth Edition of Valuing a Business presents detailed answers to virtually all valuation questions_ranging from executive compensation and lost…


Book cover of IP Valuation for the Future: Trends, Techniques, and Case Studies

Joe Carlen Author Of The Einstein Money: The Life and Timeless Financial Wisdom of Benjamin Graham

From my list on understanding value investing and business value.

Why am I passionate about this?

As an investor and a professional business valuation specialist, I have a passion for understanding the true intrinsic value of both publicly-traded and closely-held (private) companies. There’s no denying that Warren Buffett, emulating the example of his mentor Benjamin Graham, applied a private company valuation approach to the selection of publicly-traded stocks and the results speak for themselves. Furthermore, given my somewhat technical educational and vocational background, I am more comfortable than most valuators with highly technical and IP-weighted businesses. That is why I consider IP valuation to be an integral element of business valuation. 

Joe's book list on understanding value investing and business value

Joe Carlen Why did Joe love this book?

In our increasingly technology-dependent economy, business value and the value of intellectual property (IP) intersect like never before. That’s why understanding how to value patents (both individual patents and patent portfolios), trademarks, and copyrights are essential skills to those serious about discerning business value in the 21st century. Mr. Anson includes a good discussion of the best IP valuation methods and the case studies are especially instructive. 

By Weston Anson,

Why should I read it?

1 author picked IP Valuation for the Future as one of their favorite books, and they share why you should read it.

What is this book about?

In today's economic landscape, there is a growing awareness of intellectual property and its value at all levels. IP Valuation for the Future looks at all matters related to IP value, whether the value is in a transaction, litigation, or other context. This guide provides a valuation overview for attorneys who need a basic grounding in the principles and financial standards of IP valuation along with a basic review of the core attributes, categories, and permutations of various IP.
In addition, this is a helpful resource for bankers, financial professionals, venture capitalists, and other professionals. It also serves as an…


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

Joe Carlen Author Of The Einstein Money: The Life and Timeless Financial Wisdom of Benjamin Graham

From my list on understanding value investing and business value.

Why am I passionate about this?

As an investor and a professional business valuation specialist, I have a passion for understanding the true intrinsic value of both publicly-traded and closely-held (private) companies. There’s no denying that Warren Buffett, emulating the example of his mentor Benjamin Graham, applied a private company valuation approach to the selection of publicly-traded stocks and the results speak for themselves. Furthermore, given my somewhat technical educational and vocational background, I am more comfortable than most valuators with highly technical and IP-weighted businesses. That is why I consider IP valuation to be an integral element of business valuation. 

Joe's book list on understanding value investing and business value

Joe Carlen Why did Joe love this book?

The process of business valuation lies at the core of value investing. That’s what Damodaran, longtime Professor of Finance at NYU, addresses in this book. An excellent distillation of the key business valuation approaches that are most relevant for investment, The Little Book of Valuation will make the valuation work less daunting and less arduous for the lay investor of the 21st century. 

As well, like the two previous books, this book also underscores the fact that, without a systematic approach to valuing publicly-traded stocks as if they were private companies, proper value investing is not even possible, let alone profitable. Perhaps to underscore this truth, one of the recommendation blurbs is provided by Shannon Pratt, one of the leading gurus of private business valuation and the author of my 4th book pick.

By Aswath Damodaran,

Why should I read it?

1 author picked The Little Book of Valuation as one of their favorite books, and they share why you should read it.

What is this book about?

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…


Book cover of The Shareholder Value Myth: How Putting Shareholders First Harms Investors, Corporations, and the Public

Sarah Kaplan Author Of The 360° Corporation: From Stakeholder Trade-Offs to Transformation

From my list on stakeholder capitalism.

Why am I passionate about this?

Sarah Kaplan is Distinguished Professor and Director of the Institute for Gender and the Economy at the University of Toronto’s Rotman School of Management. She is the author of the bestseller Creative Destruction: Why Companies That Are Built to Last Underperform the Market—And How to Successfully Transform Them and The 360º Corporation: From Stakeholder Trade-offs to Transformation, both address the challenges of innovation and organizational change in society. She frequently speaks and appears in the media on topics related to achieving a more inclusive economy and corporate governance reform. Formerly a professor at the Wharton School and a consultant at McKinsey & Company, she earned her PhD at MIT’s Sloan School of Management.

Sarah's book list on stakeholder capitalism

Sarah Kaplan Why did Sarah love this book?

Stout’s book was an early salvo in the current debate about shareholder primacy that opened the way for many who have followed in her footsteps. In this carefully argued book, she disputes the argument that corporate boards are required by law to put the shareholder first, pointing out flaws in legal interpretations that have supported a damaging consensus view. In debunking the shareholder value myth, she shows that the obsessive focus on financial returns has led to dangerous short-termism in which corporate leaders pursue quarterly earnings to the disadvantage of investments that would not only improve social outcomes but also lead to better long term performance. She also demonstrates that shareholders hold many values, only one of which might be financial returns. In this regard, she was a vanguard of the accelerating focus of institutional investors on “stewardship” of the environmental and social impacts of their investments.  

By Lynn Stout,

Why should I read it?

1 author picked The Shareholder Value Myth as one of their favorite books, and they share why you should read it.

What is this book about?

“Shareholder value is the dumbest idea in the world.”
—Jack Welch

Executives, investors, and the business press routinely chant the mantra that corporations are required to “maximize shareholder value.” In this pathbreaking book, renowned corporate expert Lynn Stout debunks the myth that corporate law mandates shareholder primacy. Stout shows how shareholder value thinking endangers not only investors but the rest of us as well, leading managers to focus myopically on short-term earnings; discouraging investment and innovation; harming employees, customers, and communities; and causing companies to indulge in reckless, sociopathic, and irresponsible behaviors. And she looks at new models of corporate…


Book cover of Private Equity Laid Bare

Geoff Meeks Author Of The Merger Mystery: Why Spend Ever More on Mergers When so Many Fail?

From my list on accounting for M&A.

Why am I passionate about this?

As an economics student I was told that corporate merger would typically enhance financial performance, because of scale economies, market power or the acquirer’s superior management. As an auditor of recently acquired firms I found disorganization, demoralised staff, and weak profits. As a researcher I found that most mergers had failed to boost profitability, a finding that was mostly replicated by researchers over the subsequent 40 years. In the meantime, helped by my co-author, one of my aims has been to provide an explanation of this evidence, recounted in ‘my book.’ I’m an academic ‘lifer’ at Cambridge University – latterly Professor of Financial Accounting and Acting Dean of Cambridge’s Judge Business School. 

Geoff's book list on accounting for M&A

Geoff Meeks Why did Geoff love this book?

With its "buy and sell" model, the Private Equity industry which commentators have variously described as the ‘billionaire factory’ and "irresponsible locust swarms" – is responsible for a large and growing share of M&A activity. The businesses held by just two of its members employ some one and a half million people.

Phalippou draws on many years of distinguished research to demystify the secretive industry’s methods and accounting – rigorous explanations leavened by fascinating case studies and appealing humour.

By Ludovic Phalippou,

Why should I read it?

1 author picked Private Equity Laid Bare as one of their favorite books, and they share why you should read it.

What is this book about?

This is version 2.6 (both Kindle and hard copy; Audiobook is following the first edition)! Designed for an MBA course on private equity, this textbook aims to familiarize any reader with the jargon and mechanics of private markets using simplified examples, real-life situations and results from thorough academic studies. The intention is to have a book that can be read more like a novel than like a regular textbook. In order to have long-lasting impact on readers, I believe in making things as simple as possible, boiling everything down to the essence, going straight to the point, and, most importantly,…


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