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Useful and practical

This textbook provides clear and simple explanation of what many authors might try to explain in more complicated and convoluted ways.

This book was published a long time ago, back in 2012. It is the most popular book on valuation. Despite its immense popularity and the vast number of reviews available, I still felt compelled to share my thoughts on it, as my opinion differs from that of other readers.

Please keep in mind the following. I read the Investment Valuation book to improve my trading and investing performance, not aiming to become a certified financial specialist.

The author lacks clarity in expressing his thoughts in a way that is easily understandable for readers. The sentences in the book are very long and confusing. The Investment Valuation book offers valuable insights. However, extracting them will require a considerable amount of your precious time and effort.

Unfortunately, this book holds a near-monopolistic position in its field of knowledge. There is also a comprehensive book on investment valuation written by McKinsey staff. Many readers say it is even worse in quality than Damodaran's book. Currently, I have no plans to check it myself.

Note. As I write this review, I am yet to become acquainted with Aswat Damodaran's videos and articles. Perhaps they are more digestible. I have read several chapters of his book on risk management. It has the same awful style as Investment Valuation. However, it has several alternatives.

I highly recommend reading The Five Rules for Successful Stock Investing by Pat Dorsey as your first step towards successful stock investing. Begin your in-depth exploration of Investment Valuation only after you have completed it.

You would better have some understanding of the discounted cash flow method beforehand. Otherwise, you may get confused in the book of Damodaran. Also, from Pat Dorsey, you will learn about the moats that protect some companies from competitors and make them more valuable. It is a hugely important concept that Damodaran doesn't even mention.

Also, please read the Investment Valuation book only after you have completed at least an elementary course in statistics.

You must know how to test the hypotheses rigorously, what a p-value is, and how to apply linear regression. Beyond that, you should understand the limitations of statistical methods, why sample size matters, and how to avoid delivering overconfident conclusions. Aswath Damodaran uses statistical tools in his book but does not explain the basics.

I hope that one day, a book on investment valuation with the same level of detail but superior writing will become available. However, since 2012, it has not happened.

This book is the most comprehensive literature in the subject of investment valuation. There are so many methods to making an evaluation of an asset. Damodaran breaks down all the details and asks critical questions of all the evaluation methods by giving arguments and counter-arguments for all these methods.

This book is great for getting a lay of the land and being used as a reference while performing an evaluation.

Must read for valuation

I read this book for the first time when I was a freshman, then again when I was a sophomore, then again when I was a junior/senior. If you are serious about valuation this is a must.

Provides in-depth coverage on how to value firms.

Hohoho this book makes me understand especially about sensitivity analysis, beta, and so on...
Still hoping I will got score A for Corporate Valuation hehehe

An essential for anyone that work in finance; almost a bible by itself. This is an absolute must have.