Books on Valuation

CFA General
#1

Guys please refer some quality books on valuation

#2

Damodaran and Pratt published large guides that are widely used in industry. Big books.

#3

buyicide Wrote: ------------------------------------------------------- > Damodaran and Pratt published large guides that > are widely used in industry. Big books. Pratt and Damodaran’s books are generally considered the “bibles” of business valuation. If you want to find additional books on the various specialties/components of business valuation, check out www.bvresources.com.

#4

“bvresources.com” Is that Pratt’s site? Do you work in Valuation, Higgmond?

#5

the McKinsey book on Valuation is good as well

#6

buyicide Wrote: ------------------------------------------------------- > “bvresources.com” > > Is that Pratt’s site? Do you work in Valuation, > Higgmond? Yes and yes.

#7

Thanks for the help. I will start with Damodaran and then move on to Pratt.

#8

kh.asif Wrote: ------------------------------------------------------- > Thanks for the help. I will start with Damodaran > and then move on to Pratt. I don’t recommend starting with Damodaran, except in the case you have some, not so basic, knowledge on valuation. Damodaran is great to read when you have enough experience in this field so that you can understand and improve your knowledge on some specific issues. A few years back, I considered Damodara a hard to read. Maybe you should go with Shannon’s book first. Also, as SanFranCFA said, McKinsey book is great, but also not for beginners. Higgmond, big 4 or somewhere else? Cheers

#9

SanFranCFA Wrote: ------------------------------------------------------- > the McKinsey book on Valuation is good as well +1

#10

Value Investing: From Graham to Buffett and Beyond by Bruce C. N. Greenwald, Judd Kahn, Paul D. Sonkin, and Michael van Biema This covers the durable franchise methodology which I like. Once you have the Damodaran stuff down, this book gives you a good sense of how to apply that framework. The basic thesis is that a company should be worth the cost of reproducing its assets at current market values *unless* it has some kind of durable franchise that will keep out competitors over time. So there are three components to valuation: 1) The cost of reproducing a company’s assets and entering into competition with it. 2) Valuation based on the earnings power of the enterprise, assuming zero growth into the future. 3) Valuation based on earnings growth, but only if that growth is faster than the cost of capital (hmm, that doesn’t sound right, but there is some way that growth that isn’t fast enough shouldn’t get counted).

#11

Milos Wrote: ------------------------------------------------------- > kh.asif Wrote: > -------------------------------------------------- > ----- > > Thanks for the help. I will start with > Damodaran > > and then move on to Pratt. > > > I don’t recommend starting with Damodaran, except > in the case you have some, not so basic, knowledge > on valuation. Damodaran is great to read when you > have enough experience in this field so that you > can understand and improve your knowledge on some > specific issues. A few years back, I considered > Damodara a hard to read. > > Maybe you should go with Shannon’s book first. > Also, as SanFranCFA said, McKinsey book is great, > but also not for beginners. > > Higgmond, big 4 or somewhere else? > > Cheers I actually have some knowledge on Valuation because it is part of my job. But I was thinking of getting a much more comprehensive understanding… For now the list of books/authors I got from this thread are 1. Aswad Damodaran books 2. Pratt books 3. Value Investing: From Graham to Bufett 4. Shannon 5. Mckinsey Now I would need to prepare a plan and go through these.

#12

lol…i just figured out that pratt and shannon is the same person. at least some people can have a laugh this way.

#13

just found this in a search… any more books?

#14

CFA Level 2 equity is pretty great)))

#15

Non-big 4, national firm.

#16

For books check out the Intelligent Investor and the Complete Investor https://www.amazon.ca/Charlie-Munger-Complete-Tren-Griffin/dp/023117098X, highly recommend that book. In addition (and possible better) you can take all sorts of video based courses on valuation online and most of them are free. Or better yet, do both if you have time.

#17

CFA level 2 curriculum

#18

Watch Damodaran videos, do his exercises and then read his book

FInally practise doing as many company valuations you can

Thats the best and practical way to learn after learning fundamentals