Great book about pegging a value to any asset. From public companies like Palantir to paintings like Picasso. Aswath Damodaran has the formulas laid down step by step in this book.
The professor is great at finding an asset and informing you of when you've found something that is priced more than it's worth or when you've found a bargain at 20% below its value. So you're buying a dollar for 80 cents, essentially.
However, the book misses the boat, from an investing standpoint because sure you've bought an asset at a good price, but how do you know that that asset is going to then grow into a gigantic company much larger than it was when you bought it? And for me, the answer to that question is "rate of innovation". You can see how Amazon surpassed Walmart because Amazon runs 5,000 experiments per year now, however, when was the last time you something new or innovative at Walmart? Never.
Totally awesome book on the subject. especially if you sum it with the Free video of valuation course on Prof.Damodaran website. there is all material you need for valuation: Video, presentation, question, and instruction on how to implement such a model. Well done professor.
Damodaran is one of the world's leading experts when it comes to valuation. The book offers a great base for everyone interested in this topic. Besides the book I also highly recommend his NYU lectures. You can find them online. His views are transforming the industry.
Really interesting book. It reminds me a bit of How to Measure Anything: Finding the Value of "Intangibles" in Business which is one of the best business books I've ever read (my review).
Professor Damodaran has a clear, basic writing style so the reader doesn't have to be a CFA or CPA to easily understand the concepts he presents. Each concept is described in text as well as an equation (where appropriate). The book is well-edited, too, so there's little unintended repetition.
This is such an informative book, I wish I'd found it when I first started investing.
Note: The author says there's no difference between Investment Valuation and the University Edition, and to just buy which ever one is cheaper.
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Professor Damodaran gave a talk at Google. Fun, interesting video: https://www.youtube.com/watch?v=uH-ff...