Last week we provided a list of 10 of the best investing podcasts. You can find the link here:
10 Of The Best Investing Podcasts On The Planet (2023)
This week’s list is 10 of the best books on stock and business valuation. This list is by no means complete and is certainly not in any particular order. If you’re an investor take some time to check out the books on this list, they’ll provide you with an awesome starting point for your investing education. Feel feed to add your favorites in the comment section below.
- “The Little Book That Still Beats the Market” by Joel Greenblatt – This book introduces the “magic formula” for stock valuation, which focuses on buying high-quality companies at a discount to their intrinsic value.
- “The Intelligent Investor” by Benjamin Graham – A classic book on value investing that provides a comprehensive overview of stock valuation techniques, including the concept of margin of safety, which is crucial in determining the intrinsic value of a stock.
- “Valuation: Measuring and Managing the Value of Companies” by McKinsey & Company – This book offers a comprehensive framework for valuing companies, including different valuation methods such as discounted cash flow (DCF), comparable company analysis (CCA), and precedent transactions analysis (PTA), and discusses the acquirer’s multiple as well.
- “Security Analysis” by Benjamin Graham and David Dodd – Considered the bible of value investing, this book provides in-depth insights into various valuation techniques and investment strategies, including a detailed analysis of financial statements, earnings power value, and asset-based valuation.
- “The Acquirer’s Multiple: How the Billionaire Contrarians of Deep Value Beat the Market” by Tobias Carlisle – This book specifically focuses on the acquirer’s multiple as a valuation metric and provides insights on how to use it to identify undervalued stocks and beat the market.
- “The Theory of Investment Value” by John Burr Williams – This is a classic book on stock valuation and is often considered a seminal work in the field of finance. It is based on the concept of discounted cash flow (DCF) valuation, which is widely used by investors to estimate the intrinsic value of a stock.
- “Value: The Four Cornerstones of Corporate Finance” by Tim Koller, Richard Dobbs, and Bill Huyett – This book presents a comprehensive approach to corporate valuation, covering topics such as cash flow valuation, cost of capital, and valuation of intangible assets.
- “Quality Investing: Owning the Best Companies for the Long Term” by Lawrence A. Cunningham, Torkell T. Eide, and Patrick Hargreaves – This book focuses on the importance of quality in stock valuation and provides insights on identifying high-quality companies with durable competitive advantages.
- “Investment Valuation: Tools and Techniques for Determining the Value of Any Asset” by Aswath Damodaran – A widely used textbook on valuation, this book covers various valuation methods, including discounted cash flow (DCF), relative valuation, and real options valuation, with practical examples.
- “Business Analysis and Valuation” by Krishna Palepu – Financial statements are the basis for a wide range of business analysis. Managers, securities analysts, bankers and consultants all use them to make business decisions. There is strong demand among business students for course materials that provide a framework for using financial statement data in a variety of business analysis and valuation contexts.
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