Damodaran on Valuation: Security Analysis for Investment and Corporate Finance (Wiley Finance) (Hardcover)

~ (Author)
Key Phrases: estimating discount rates, firm valuation models, measuring cash flows, United States, Journal of Financial Economics, Titan Cement (more...)

Editorial Reviews

Product Description

"Aswath Damodaran is simply the best valuation teacher around. If you are interested in the theory or practice of valuation, you should have Damodaran on Valuation on your bookshelf. You can bet that I do."
-- Michael J. Mauboussin, Chief Investment Strategist, Legg Mason Capital Management and author of More Than You Know: Finding Financial Wisdom in Unconventional Places

In order to be a successful CEO, corporate strategist, or analyst, understanding the valuation process is a necessity. The second edition of Damodaran on Valuation stands out as the most reliable book for answering many of todays critical valuation questions. Completely revised and updated, this edition is the ideal book on valuation for CEOs and corporate strategists. You'll gain an understanding of the vitality of todays valuation models and develop the acumen needed for the most complex and subtle valuation scenarios you will face.

From the Inside Flap

The ability to value any asset is an essential skill in a wide variety of professional environments, from corporate finance to portfolio management to strategy. And while the reasons for doing valuation are as wide-ranging and varied as business itself, the fundamental precepts underlying valuation are surprisingly similar in both form and function.

Damodaran on Valuation, Second Edition provides you with today's most straightforward and comprehensive examination of the approaches and models necessary for performing valuations. Written by renowned teacher, author, and valuation authority Aswath Damodaran, and fully revised and updated from its top-selling first edition—which has become the essential reference for any professional needing accurate and reliable valuation information—this invaluable book now provides you with:

• In-depth coverage of different distinct valuation approaches and key models within each
• Techniques for accurately assessing the effect on value of employee stock options and other equity-based compensation
• Methodologies for using valuation models to value intangible assets—patents, copyrights, trademarks, licenses, brand names, and more
• Sound strategies for identifying and measuring the value of control in any business and why the expected value of control plays a role in many different valuation contexts
• Discussion of how liquidity—or, more accurately, illiquidity—affects value, along with ways to measure this impact on value
• Potential sources of the ever-elusive "synergy" when combining two entities, how best to value each type of synergy, and an examination of why firms so often overpay for synergy
• Techniques for measuring the costs of accounting opacity and business complexity, and accurately discounting the value of complex firms to promote transparency at every level
• A commonsense framework you can use to sift through numerous possible valuation models to determine the best model for your valuation task

For more than a decade, Damodaran on Valuation has been the standard valuation reference for professionals in virtually everyfield. Business realities have changed dramatically over that time, but the principles underlying valuation have not. Let this comprehensively revised and updated edition give you the knowledge and tools you need to address today's increasingly complex—and uncompromising—corporate and investment valuation environment.

See all Editorial Reviews

Product Details

• Hardcover: 696 pages
• Publisher: Wiley; 2 edition (August 4, 2006)
• Language: English
• ISBN-10: 0471751219
• ISBN-13: 978-0471751212
• Product Dimensions: 9.8 x 7.3 x 1.6 inches
• Shipping Weight: 2.9 pounds (View shipping rates and policies)
• Average Customer Review: 4.6 out of 5 stars  See all reviews (7 customer reviews)
• Amazon.com Sales Rank: #56,687 in Books (See Bestsellers in Books)

  Popular in these categories: (What's this?)

  #6 in	Books > Business & Investing > Management & Leadership > Pricing
  #68 in	Books > Business & Investing > Finance > Corporate Finance

Customer Reviews

Most Helpful Customer Reviews

5 of 6 people found the following review helpful:

2.0 out of 5 stars academic, useful, March 15, 2009

By	HiFi - See all my reviews

I work for one of the largest banks in the US, and we use this book as a reference when we need to dig into the more arcane details of a project, particularly with regard to publicly-held interests. If you do a lot of valuation work, this is a recommended text, but it is tome-like and laborious to use, and I've found much of the advice it contains is very ivory-tower and not-so-practical in real world situations, having been written by a theorist rather than a dealmaker. If you are studying valuation theory, or do a lot of work on publicly-held companies, you'll definitely want this textbook, though over time, for privately-held situations, it might not be the one you reach for everyday. To accompany it, I would suggest buying Horn's "Unlocking the Value of a Business" for everyday use, which is a more concise and user-friendly manual on privately-held company valuation, with a more lighthearted, less-academic tone, and Horn's credentials as an acquisitions dealmaker yield advice that is decidedly more practical.

5.0 out of 5 stars Thoroughly covers most aspects of equity valuation, May 22, 2009

By	jelarv "jelv" (Riverside, CT USA) - See all my reviews

I saw the author speak at a conference which prompted me to buy the book. His presentation and book nicely merge theory with practice -- too many valuation books are academic and don't deal with the real-life problems. He seems to anticipate the types of real-life challenges you'll get and then tells you how to handle them (about half the book addresses these "loose ends" that aren't always covered in more basic valuation material). I especially like that he's embraced valuation methods beyond DCF (such as P/E and P/B) because purists tend to dismiss these other methods as too crude for serious consideration(in his book he acknowledges that only 10% of Wall Street valuations are done with DCF). His web site is great for practitioners because you can download the raw numbers for thousands of companies and do the valuation steps he highlights in the book.

0 of 2 people found the following review helpful:

5.0 out of 5 stars Amazing book , December 12, 2008

By	Cristiano Malucelli - See all my reviews (REAL NAME)

This is an amazing book for those who want to know everything about valuation.It has all concepts and real examples. Highly recommended.