Top 10 Aswath Damodaran Books

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  • The Little Book Of Valuation: How To Value A Company, Pick A Stock And Profit ( Get this book )Investment Valuation: Tools And Techniques For Determining The Value Of Any Asset ( Get this book )The Dark Side Of Valuation: Valuing Young, Distressed, And Complex Businesses ( Get this book )Investment Philosophies: Successful Strategies And The Investors Who Made Them Work ( Get this book )Damodaran On Valuation: Security Analysis For Investment And Corporate Finance ( Get this book )Corporate Finance: Theory And Practice ( Get this book )Strategic Risk Taking: A Framework For Risk Management ( Get this book )Investment Fables: Exposing The Myths Of “Can’t Miss” Investments Strategies ( Get this book )Applied Corporate Finance: A User’s Manual ( Get this book )Damodaran Valuation Set ( Get this book )

Let us go through each Aswath Damodaran book briefly to understand the learnings and knowledge it provides –

 #1 – The Little Book Of Valuation: How To Value A Company, Pick A Stock And Profit

Aswath Damodaran has been a pioneer in corporate finance and valuation; his insights have helped many people come across crucial topics in a more understandable format and examples.

Book Review

Any investment decision is majorly based on valuation. The final call of selling, buying, or holding any asset comes from valuation, which plays a pivotal role in finance. This book explains the terms for investors in an easy-to-understand way so that any new investor can also relate to it. It is one thing to read valuations and another to make sense of it. This book helps in both parts equally. The book also covers multiple valuation approaches with crucial techniques.

Key Takeaways

  • The book comprises case studies and examples.It comes with an iPhone application for making book lessons immediately useful.The book serves as a guide for stock valuation.

#2 – Investment Valuation: Tools And Techniques For Determining The Value Of Any Asset

There are many processes and techniques to understand the stock valuation or determine the valuation of a company. But, Aswath Damodaran as an educator, helps students learn it swiftly.

The book provides a detailed explanation of valuation techniquesValuation TechniquesDiscounted cash flow, comparable company analysis, comparable transaction comps, asset valuation, and sum of parts are the five methods for valuing a company.read more followed in financial marketsFinancial MarketsThe term “financial market” refers to the marketplace where activities such as the creation and trading of various financial assets such as bonds, stocks, commodities, currencies, and derivatives take place. It provides a platform for sellers and buyers to interact and trade at a price determined by market forces.read more and investors in general. It also explains critical market variations and sheds light on selecting the right model for any valuation scenario. The book covers topics like start-up firms, real estate, assets distribution, private equityPrivate EquityPrivate equity (PE) refers to a financing approach where companies acquire funds from firms or accredited investors instead of stock marketsread more with properly updated examples for readers to learn easily.

  • Comes along with updated online databases, spreadsheets, and other support toolsTalks about the market crisis and emerging markets and types of equity investmentsEquity InvestmentsEquity investment is the amount pooled in by the investors in the shares of the companies listed on the stock exchange for trading. The shareholders make gain from such holdings in the form of returns or increase in stock value.read more.Holds high rank among Aswath Damodaran books on valuation.It becomes a must-read book for students to gain insights and learn the valuation process.

#3 – The Dark Side Of Valuation: Valuing Young, Distressed, And Complex Businesses

This book came out in the year 2009 and is written to understand the other side of the valuation process. As the name suggests, it gives an exhaustive idea of complex businesses.

The author offers a perspective towards resisting easy valuation. The book, in all its content, highlights hard-to-value firms. The author particularly targets the corporate sector in this book and marks outs the various downsides of it. Students may also read it to understand human capital, technology, cyclical firms, and commodity.

  • The book wants the reader to identify the temptation to use unrealistic valuation techniques.The author talks about risk premiumsRisk PremiumsRisk Premium, also known as Default Risk Premium, is the expected rate of return that the investors receive for their high-risk investment. You can calculate it by deducting the Risk-Free Investment Return from the Actual Investment Return. read more and risk-free ratesRisk-free RatesA risk-free rate is the minimum rate of return expected on investment with zero risks by the investor. It is the government bonds of well-developed countries, either US treasury bonds or German government bonds. Although, it does not exist because every investment has a certain amount of risk.read more.It offers an intelligent analysis for angel and early venture capital investing.The book explains several stages of the corporate lifecycle.

#4 – Investment Philosophies: Successful Strategies And The Investors Who Made Them Work

The book serves as a compilation of investment philosophies along with investor stories. The book initially came out in 2012 and is one of the most important books on the topic.

The book deals with the actual results of different investment strategiesInvestment StrategiesInvestment strategies assist investors in determining where and how to invest based on their expected return, risk appetite, corpus amount, holding period, retirement age, industry of choice, and so on.read more and philosophies applied. Hence it serves as a guide for investors to know about the pros and cons of varying levels of investment applications and how they stand in the market on a practical level. In addition, the book covers market timing, value investing, technical analysis, indexing, and what investors should do.

  • The book is a major source of resources and tools.It helps comprehend portfolio management and the variety of strategies.The book defines the creating and managing of a portfolio process.It shows readers how to register profit.

#5 – Damodaran On Valuation: Security Analysis For Investment And Corporate Finance

The book was released in 1994 and has been updated multiple times to meet the current market trends and explanations.

For people interested in the theory or practice of valuation, this book must always be on their reading list, and in fact, it should always be present with them. Many CEOs worldwide state that it is important to grow in company valuation and process to become a successful CEO or business professional. This book particularly is suggested by many readers as one of the most reliable books on the topic.

  • The book answers many critical questions on valuation and is a must-have, must-read book for students looking for information on the valuation process.This book has its reputation and following among the Aswath Damodaran books on valuation.Students and many investors follow this book to understand the terms and concepts of valuation.

#6 – Corporate Finance: Theory And Practice

This book has been a long-time favorite of people. Many editions of this book have been published with a huge following of students and professionals.

The book deals with the subject of corporate finance and attracts a lot of readers given the author’s reputation as a well-known academic and professor of the subject. Moreover, some new chapters are incorporated with every edition, which again works in the weightage of the book’s knowledge. In addition, it makes financial concepts easy to understand that are quite complex.

  • The book has a perfect blend of theory and practical financial concepts.It offers exhaustive preparation for working on corporate finance productively.The author, through this book, helps students learn essential concepts and techniques for real-world applications.The book contains data, quizzes, case studies, lecture notes, and other important information.

#7 – Strategic Risk Taking: A Framework For Risk Management

The book came out in 2007 and has been a great resource for people looking to understand risk management in finance and master its practice strategically.

Aswath Damodaran has been a personality of pure financial knowledge. So when he wrote this book, it became adamant that he could share his insights with people. Still, if followed in the right way, his teachings can help people understand the risk factorsRisk FactorsRisk factors in Business are constituents, circumstances, or causes, responsible for interruption, or, disrupting the business activities or operations, expectations, plans, objectives, or strategies of a business or an investor.read more and aid investors in different sets of assets managementAssets ManagementAsset management is a method of managing funds and investing in both traditional and specialized products in order to generate returns consistent with the investor’s risk tolerance. read more and financial markets.

  • The author explains financial tools for evaluating risk.The book offers a detailed perspective on risk management in finance.It draws a line between good and bad investments.The book covers traditional finance, uses risk strategically, and encourages people to take calculated risks.

#8 – Investment Fables: Exposing The Myths Of “Can’t Miss” Investments Strategies

The book was originally published in 2004, in which Aswath Damodaran shares some of the most interesting investment fables and strategies to look at.

This book talks about debunking myths of the market and how to make smart investments. It provides a specific definition of the stock marketStock MarketStock Market works on the basic principle of matching supply and demand through an auction process where investors are willing to pay a certain amount for an asset, and they are willing to sell off something they have at a specific price.read more and its terms, like blue-chip stocks, high dividend Dividend Dividends refer to the portion of business earnings paid to the shareholders as gratitude for investing in the company’s equity.read morestocks, bondsBondsBonds refer to the debt instruments issued by governments or corporations to acquire investors’ funds for a certain period.read more, debenturesDebenturesDebentures refer to long-term debt instruments issued by a government or corporation to meet its financial requirements. In return, investors are compensated with an interest income for being a creditor to the issuer.read more, momentum, etc. The author wants people to understand the importance of investing in the stock market and making long-term profits. That is why the book comprises many encouraging investment stories in it.

  • The book discusses the 13 truths of today’s most widely trending investment strategies.It argues if it is okay to follow what big investors do and answers the same.The author shares 10 powerful lessons for every individual looking forward to investing.This book is good for anyone’s smart investment decisions.

#9 – Applied Corporate Finance: A User’s Manual

The book was released in 1998, and Aswath Damodaran explained the various tactics and theories regarding applied corporate finance and its environment.

The book discusses various applied corporate finance theories and applications to provide the readers with the big picture that many of them do not see at first glance. In addition, the book has its way of telling students about the assumptions, models, and debate theories around corporate finance.

  • The book has six core and real-world companies to follow and study.The author divides the business decision into three types – financing, investment, and dividend.Apart from the valuation topic and process, the book explains various factors and the flip side of corporate finance applications and practices.

#10 – Damodaran Valuation Set

The book with the author’s name came out in the year 2007. The book is a compilation of all the author’s knowledge and shared with its readers.

Over the years, the author gathered the knowledge of being a scholar and a famous professor. As a result, this book comprises all the information to share with people interested in financial markets, valuation processes, stocks, assets, making a long-term profit, and commerce. This particular trait makes this book one of the best Aswath Damodaran books on valuation.

  • The book has everything one wants to know and study the valuation process.Anyone from students to investors can read the book.It serves as an encyclopedia of valuation and other financial terms.

This has been a guide to the Best Aswath Damodaran Books on valuation. Here we briefly discuss the top 10 books, along with a review and why to read them. You may also have a look at these suggested books below –

  • 8 Best Valuation Books8 Best Valuation BooksValuation books are books that include various matter and facts related to valuation and can be used to obtain vital market information. Some of the best valuation books are: The intelligent investor,  Theory of Investment Value, Equity Asset Valuation, Damodaran on Valuationread moreFinance BooksFinance BooksFinance books guide you to manage your funds and wealth smartly. They help you to plan your investments, savings and expenses systematically. Books like The Millionaire Next Door, Rich Dad Poor Dad and I Will Teach You To Be Rich are some of the examples.read moreInvesting Books