13 Best Books on Stock Valuation

Best Books on Stock Valuation

What are the best books on stock valuation?

Stock valuation is a method to calculate the value of a business and its stock. Knowing what your stock is worth may dictate how you will invest and even make managerial decisions. The best books on stock valuation is a list that attempts to compile some of the industry standards on the concept of stock valuation. Names like Aswath Damodaran and others teach deep and complex topics, yet give you an understanding that you need to understand the basics. 

Best Books on STOCK VALUATION: THE LIST

1. The Little Book of Value Investing
2. Valuation (Ferris)
3. The Streetsmart Guide to Valuing a Stock
4. The Little Book of Valuation
5. Stock Valuation
6. Stocks for the Long Run
7. Financial Modeling and Valuation
8. Valuation (Koller)
9. Value Trap
10. Investment Valuation
11. The Intelligent Investor
12. Modern Investment Theory
13. Determining Value

1 – The Little Book of Value Investing | By Christopher Browne

View on Amazon Unlimited Reading View Summary

Without giving any false hope, Christopher H. Browne succeeds in presenting the central ideas of the stock market investment in an uncomplicated and straightforward manner. You will see that the process of stock market investing is not that difficult as he compares it to as simple as shopping for groceries, giving the readers an entirely new perspective of it. He also provided instructions on how to take advantage of online stock screening tools and P/E ratios. In The Little Book of Value Investing, investors are encouraged to their due diligence before they expect a positive return. Brown stressed that the aggressive trading approach is not always the best course of action. Instead, there are scenarios where doing nothing reaps the better result.

Quotes from the book;

“The beauty of value investing is its logical simplicity. It is based on two principles: What’s it worth (intrinsic value), and don’t lose money (margin of safety).”

“Such opportunities do not come on the heels of great times; they are preceded by much pain.”

“Most people tend to look at…everything they buy with an eye on the value they get for the price.”

“When prices drop, they buy more of the things they want and need. Except in the stock market.”


2 – Valuation | By Kenneth Ferris and Barbara Pecherot Petitt

View on Amazon Unlimited Reading View Summary

Writers Kenneth R. Ferris and Barbara S. Pecherot Petitt offer compelling examples of businesses that overcompensated disastrously for acquisitions. They further examine why these companies ended up failing and what other alternatives they could have done to avoid such an outcome. The writers concluded that these companies ended with unfortunate faith because of their lack of assessments. That is why, in Valuation: Avoiding the Winner’s Curse, they also provide complete recommendations and cautionary notes about when and how to utilize different valuation, assessment models. They believe that by doing so, companies will be equipped with the right assessment reports as a basis for decision making, which may make or break their success. 

Quotes from the book;

“The fundamental tenet of investment valuation is well-established in corporate finance: The value of an asset today is the present value of the future cash flows that the asset is expected to provide its owners.”

“In essence, in about one of every two mergers or acquisitions, the acquirer management commits some type of critical error – in the assessment of target-firm value, in the bidding process or in the postacquisition integration of the acquiree.”

“Divergent revenue recognition practices may be a considerable source of bias in accounting data.”

“Although much is made about selecting an appropriate valuation multiple or discount rate, nothing is more important in assessing firm value than a complete and accurate modeling of a target’s operations.”


3 – The Streetsmart Guide to Valuing a Stock | By Gary Gray, Patrick Cusatis, and J. Randall Woolridge

View on Amazon Unlimited Reading View Summary

All that you need to comprehend regarding how to assess a stock is included in The Streetsmart Guide to Valuating a Stock: The Savvy Investor’s Key to Beating the Market. However, understanding it can be a problem as it appears that the writers used a unique system in arranging their chapters. For instance, in order for you to follow a concept in Chapter Two, you have to skip reading to chapter Five. However, once you get the hang of the arrangement, this book can become one of your most helpful resources when it comes to identifying the value of stocks. The glossaries incorporated within the end of each chapter are easy to read and follow. 

Quotes from the book;

“Many corporations appear to be overly concerned with managing their EPS (earnings per share) growth through accounting gimmicks to achieve or exceed the expectations of Wall Street.”

“It’s a lot easier for a CEO to talk about revenue and earnings growth than it is to develop the products and strategies to accomplish that growth.”

“The value of a stock – like the value of any other financial instrument – is equal to the discounted value of its expected cash flows, adjusted for risk and timing.”

On any corporate investment, a corporation creates additional value for stockholders if and only if it earns a rate of return, after all net cash flow adjustments, that is greater than the corporation’s weighted average cost of capital.”


4-  The Little Book of Valuation| By Aswath Damodaran

View on Amazon Unlimited Reading View Summary

It is authored by Aswath Damodaran, a most respected valuation expert of today’s generation. Word by word, Damodaran refines the basics of valuation, explains every critical concept needed to be covered, and expands theories that can effortlessly be understood and applied. In this process, he incorporates different valuation methods from natural or diminished cash flow appraisal and multiples or contingent assessment to some components of existing choices valuation. It covers case studies and illustrations that will assist in increasing your valuation abilities. The Little Book of Valuation: How to Value a Company also consists of an iVal, which is an iPhone application that advances the teachings of the book.

Quotes from the book;

“THE BEAUTY OF VALUE INVESTING is its logical simplicity. It is based on two principles: What’s it worth (intrinsic value), and don’t lose money (margin of safety).”

“Most investors choose not to value companies and offer a variety of excuses: valuation models are too complex, there is insufficient information, or there is too much uncertainty.”

“When stocks were first traded in the sixteen and seventeenth centuries, there was little access to information and few ways of processing that limited information. Only the very wealthy invested in stocks, and even they were susceptible to scams.”

“Do not let experts and investment professionals intimidate you. All too often, they are using the same information that you are and their understanding of valuation is no deeper than yours.”


5- Stock Valuation | By Scott Hoover

View on Amazon Unlimited Reading View Summary

Scott Hoover provides a realistic overview of the valuation principles adopted by Wall Street. Detect underpriced stocks prior to your competitors. Triumphant investments are about overcoming market standards. To achieve this, you require to comprehend how to distinguish, assess, and finance in mispriced stocks. This book equips you with the first-hand review of Wall Street’s several extensively followed valuation standards, concentrating on the technical foundations of those standards and how they operate when implemented to real trades in the market. Most of the sections covered in Stock Valuation: An Essential Guide to Wall Street’s Most Popular Valuation Models are associated with a first-hand review of the structure segments of specific valuation, implementation of a Discounted Cash Flow (DCF) model heading to the development,  and several other knowledge.

Quotes from the book; 

“To understand the potential for stock picking to be profitable, we must first consider how prices are formed in the marketplace.”

“The value of a stock depends on the value today of the company’s future cash flows.”

“The motivations to undertake valuation include the potential to profit from trading, the desire to establish effective economic policies, the desire to understand and better manage companies, and the need to convey accurate yet simplified information to the public.”

“One of the more difficult hurdles we need to overcome is the natural tendency to want to choose only high-quality companies. There is certainly nothing wrong with this instinct, but we do need to understand that there is a distinction between picking good companies and picking good stocks.”


6 – Stocks for the Long Run | Jeremy Siege

View on Amazon Unlimited Reading View Summary

Many have changed since the last edition of Stocks for the Long Run: The Definitive Guide to Financial Market Returns & Long-Term Investment Strategies. The financial disaster, the most extensive bear economy after the Great Depression, and the endured extension of the new markets are just a few of the predicaments immediately changing each business portfolio. Jeremy Siegel has refreshed his number 1 selling book about stock market investing. This latest version explains all the critical issues of today: Ho was the future of stocks return and financial markets altered by these crises? This 5th version incorporates brand-new chapters of the financial crisis, the economy of China and India, the condition of the global market, and market valuation. 

Quotes from the book;

“When the real estate market reversed direction and the prices of these securities plunged, firms that had borrowed money were thrown into a crisis that sent some into bankruptcy, others into forced mergers with stronger firms, and still others to the government for capital to ensure their survival.”

“Despite the actions taken by the Federal Reserve to moderate the economic contraction, the credit disruption that followed the Lehman bankruptcy had a devasting impact on the equity markets, which suffered their worst decline in 75 years.”

“It is especially tragic that Federal Reserve Chairman Alan Greenspan, by far the most influential public official in economic affairs, did not warn the public of the increasing risks posed by the unprecedented rise in housing prices.”

“The collapse of both the economy and the stock market in the 1930s left an indelible mark on the psyches of investors.”


7 – Financial Modeling and Valuation | By Paul Pignataro

View on Amazon Unlimited Reading View Summary

Authored by the CEO and Founder of the well renowned New York School of Finance, this book teaches you in the primary mechanisms for precisely appraising the situation in stock investment. Formulated on a case study of Wal-Mart, it reveals to you how to conduct a thorough investigation of that business’s business position, accompanying you in all the moves of creating a complex financial strategy just like an expert Wall Street. You will assemble a complete economic design and valuation process as you go on with Financial Modeling and Valuation: A Practical Guide to Investment Banking and Private Equity. The chapters in this book include financial modeling and how to build a model that incorporates balance sheets, income statements, Depreciation schedules, etc. 

Quotes from the book;

The markets are vast and complex—not only the United States but also the global markets. Stocks, bonds, mutual funds, derivatives, options—yes, choices are endless, literally. Everyone wants to make money. Yet, throughout the past years, we have faced tremendous market swings, rendering investors (and their money) in a sea of lost hopes and few investors with a plethora of wealth.”

It is useful to compare the value results with the company’s value based on where its stock has peaked and troughed within the last 52-week period.”


8 – Valuation | By Tim Koller, Marc Goedhard, and David Wessels

View on Amazon Unlimited Reading View Summary

This best selling book is one of a kind book that helps financial specialists all over the world to shine at calculating, maximizing, and maintaining company value and shareholders. Valuation: Measuring and Managing the Value of Companies gives perspective on the vital assets of differences managers, value-based management, and comprehensive specific instruction, should grasp about appraisal and valuation procedures as utilized to various emerging markets, unique situations, and industries. The chapters include the intersections of finance and corporate approach. However, you need to grasp the value of business strategies to assess large transactions and make a capital structure to understand it’s content entirely. 

Quotes from the book;

“If investors knew as much about a company as its managers do, maximizing its current share price might be equivalent to maximizing value over time.”

“The stock market’s volatility and the erratic pricing of some companies’ shares have raised questions about whether stock prices are actually linked to economic fundamentals.”

“Share price data for companies that report different accounting results in different stock markets provide additional evidence that stock markets do not take reported earnings at face value.”

“Diversification is still a hotly debated topic,…Yet the myths around diversification creates value by smoothing a company’s performance.”


9 – Value Trap | By Brian Nelson

View on Amazon Unlimited Reading View Summary

This book has merited recognition from the New Generation Indie Book Awards and other notable bodies. The author, Brian Nelson, who was the President of Investment Reseach at Valuentum and prior director of Methodology at Morningstar,  describes enterprise valuation makes the Theory of Universal Valuation. Value Trap: Theory of Universal Valuation consists of 365 pages which include, the Index, Bibliography, Notes, and Prefaces address some alarm trends and practices in today’s investment management. This book aims to deliver a response to the question of what is the best approach for evidence-based finance? Since obviously, experimental assumptions are not enough. This book contains a thorough review of the inconsistencies of “explaining” the behavior of stock return in factor-based investing. 

Quotes from the book;

“The markets may truly have gone full circle over the past century. During the flapper years of the “Roaring ‘20s,” many investors followed the advice of Evangeline Adams.”

“Passive strategies and quantitative investing may seem like they are on the fringe, that investors aren’t paying a lot of attention to them, but this could not be further from reality.”

“Big data is, nonetheless, upon the financial world–whether the data makes sense or whether the data actually measures what researchers believe it measures.”


10 – Investment Valuation | By Aswath Damodaran

View on Amazon Unlimited Reading View Summary

The ultimate reference of knowledge on all matters associated with investment valuation techniques and tools. Valuation is the center of any investment choice, regardless of that choice on buying, selling, or holding. However, the rates of many assets are now more complicated, especially after the contemporary financial crisis. To be victorious at this attempt, one must have a sound understanding of the techniques in valuation. This book is exemplary as it endured the growing change in students and investors of financial markets. Presently, Investment Valuation: Tools and Techniques for Determining the Value of Any Asset wholly improved and modernized to show shifting market conditions. This third version thoroughly explains to investment students and professionals the different valuation strategies accessible and which one is the right choice.  

Quotes from the book;

“Every asset, financial as well as real, has a value.”

“Valuation is useful in a wide range of tasks. The role it plays, however, is different in different arenas. The following section lays out the relevance of valuation in portfolio management, in acquisition analysis, and in corporate finance.”

“Financial statements provide the fundamental information that we use to analyze and answer valuation questions.”

“When valuing assets and firms, we need to use discount rates that reflect the riskiness of the cash flows.”

“The relationship between price and book value has always attracted the attention of investors. Stocks selling for well below the book value of equity have generally been considered undervalued, while those selling for more than book value have been targeted as overvalued.”


11 – The Intelligent Investor | By Benjamin Graham

View on Amazon Unlimited Reading View Summary

A book that must be on every investor’s bookshelf, The Intelligent Investor: The Classic Text on Value Investing is the principles that are laid out by author Benjamin Graham. These precepts and guides are so great that the best investors like Warren Buffett and John Bogle use them for their success. Graham’s book was first published in 1949, which shows signs of age in its discussions, such as interest rates, savings bonds, and other time-sensitive topics. Nevertheless, the fundamentals and counsel of Graham’s concepts and principles are timeless to all investors. 

Some of the key concepts you’ll learn in this book are; that investors fall into two categories, the defensive and the enterprising; you’ll learn that speculation is not investing; to become successful, a enterprise investor must treat their investment as any other business they are in; there is no evidence that supports that market timing and market forecasting even work; diversification and the concept of margin of safety can protect portfolio investing.  

Quotes from The Intelligent Investor;

“It is amazing to see how many capable businessmen try to operate in Wall Street with complete disregard of all the sound principles through which they have gained success in their own undertakings.”

“Some of these issues may prove excellent buys – a few years later when nobody wants them and they can be had at a small fraction of their true worth.”

“The intelligent investor (needs) an ability to resist the blandishments of salesmen offering new common-stock issues during bull markets.”

“Good management produces a good average market price, and bad management produces bad market prices.”


12 – Modern Investment Theory | By Robert A. Haugen

View on Amazon Unlimited Reading View Summary

This book offers accurate and intuitive coverage of investments, with an emphasis on portfolio theory. It includes extensive discussion of capital asset pricing, arbitrage pricing, pricing of derivative securities, interest rates, and bond management. Stock valuation, estimating future earnings and dividends, and fixed income markets are examined closely. For individuals interested investing and portfolio management.


13 – Determining Value | By Richard Barker

View on Amazon Unlimited Reading View Summary

Final year undergraduates of business, finance students, MBA and Postgraduate students of business and/or finance. It will also be of keen interest to professional practising financial analysts. This book is about the methods used to value companies. Valuation methods such as the price – earnings ratio, dividend yield and EVA are found frequently in stockholder reports and financial press and there has been an explosion of interest in ‘shareholder value’ in recent years with a corresponding need to understand how value is created and measured. The book contains both the analytical review of valuation models and also evaluation of the data available for use in valuation models. This is the first time that this information has been available in a textbook and been academically and critically evaluated.


Final Thoughts on the Best Books on Stock Valuation

This article was an attempt to consolidate the best books on stock valuation. Obviously, the list is not an exhaustive list of every book on the subject. However, the ‘best books on stock valuation’ list attempt to orchestrate different angles and degrees on stock valuation.

This page may contain affiliate links. This website may contain content that comes from Amazon. This website and its pages are not intended to constitute legal, financial, or tax advice. The information on this website and its pages are not intended to constitute investment advice and all content are the views and opinions of the author(s), contributors, or administrators. Please read our disclaimer for more info.

Hi. My Name is

James Gheen

Welcome to the Bigger Investing website. I’m here to help you find the resources, motivation, and guidance for all entrepreneurial, investing, business, career endeavors, and more, so that you can invest in what’s most important. Your mind!

My focus is to equip you with expert sources, books, guides, articles, and more to help you achieve your personal goals.

Want to learn more? Take a look.

getabstract ad


Read in Graphics

Rich Dad Summit Ad

Best Books on Technology Industry

Best Books on Technology Industry

echnology in our society is something that helps us in many ways. It has changed the way we work, communicate, do business, and even how we learn. This blog post will provide you with a list of some great books on the technology industry to help...

What Businesses Use Telemarketing?

What Businesses Use Telemarketing?

elemarketing is a marketing technique that has been in use since the 1930s. It was developed to help businesses and individuals reach out to customers and potential clients by phone. Businesses of all sizes can benefit from telemarketing, but...

How Do I Start a Telemarketing Business?

How Do I Start a Telemarketing Business?

fter you have thought about the potential of a telemarketing business and decided it is for you, there are many steps to take before launching your company. First, find an office space that will suit your needs and then start looking for...

Best Books on Telemarketing

Best Books on Telemarketing

he most important part of a telemarketing campaign is the initial contact. This is where you make your pitch, and to do this effectively, you need to know what script to use. A good book on telemarketing will guide you through every step of the...

What are the Seven Rules of Negotiation?

What are the Seven Rules of Negotiation?

egotiation is a crucial skill to have in any business. It can be used not only with clients but also internally to get the best terms for your company and employees. While there are many different ways to negotiate, some of the most important...

What are Good Negotiation Skills?

What are Good Negotiation Skills?

he ability to negotiate is one of the most essential skills that a person can have. Negotiation is not only important in business, but it's also an important skill in life. The way you negotiate will determine your future success and happiness. A...

What is the Key to Successful Negotiation?

What is the Key to Successful Negotiation?

here are certain things you should never do in a negotiation. When I was just starting out, these were some of the most difficult lessons for me to learn. If you want to be successful at negotiating, there are three basic principles that will help...

How Do You Counter Offer a Salary?

How Do You Counter Offer a Salary?

t can be really difficult to counter offer a salary. When it comes down to it, you want the job and they want you. So how do you turn this situation into an advantageous one? The first thing is to know what your worth is. It may seem like a...

How Do You Start a Negotiation?

How Do You Start a Negotiation?

here are many ways to start a negotiation, but you need to keep in mind that the person on the other side of the table is just as nervous and scared about it as you are. You can make them feel more comfortable by starting with an ice breaker...

What Makes a Good Sales Negotiator?

What Makes a Good Sales Negotiator?

f you're in the market for a good sales negotiator, it's important to know what makes somebody successful at this job. First of all, they have to be able to negotiate well and get their clients the best deal possible. They also need to understand...

What is a Lettings Negotiator’s Salary?

What is a Lettings Negotiator’s Salary?

hat is a lettings negotiator's salary? This question should be on the mind of any prospective rental tenant. The negotiation process can be confusing, and knowing what to expect can help make it less stressful. The first thing to consider is that...

How Do You Deal with a Hard Negotiator?

How Do You Deal with a Hard Negotiator?

f you want to successfully negotiate a deal, it's important that you know how to handle someone who is hard-headed. These people are difficult and will not budge on their prices or demands. In this blog post, we'll discuss strategies for dealing...

What is the Most Important Attribute of a Negotiator?

What is the Most Important Attribute of a Negotiator?

negotiator is someone who helps two parties reach an agreement. What are the most important skills needed for this job? The answer to that question depends on what type of negotiation you're doing. In a business negotiation, it's important to be...

What Are the Characteristics of a Good Negotiator?

What Are the Characteristics of a Good Negotiator?

good negotiator is someone who has the ability to manage their emotions and think strategically. They are also able to communicate well with others, which can lead to building stronger relationships that could be beneficial in future negotiations....

What Country Has the Lowest Capital Gains Tax?

What Country Has the Lowest Capital Gains Tax?

he United States has one of the highest capital gains taxes in the world. It's a whopping 39% on long-term capital gains and 20% on short-term capital gains. If you're looking for a country with lower tax rates, look no further than Estonia. The...

Are There Any Tax Shelters Left?

Are There Any Tax Shelters Left?

here are many different tax shelters, and some of them are more popular than others. One of the most popular is a retirement account such as an IRA or 401k, but there are other options out there. In this blog post, we will explore these...

How Do Billionaires Avoid Taxes?

How Do Billionaires Avoid Taxes?

illionaires have a lot of money and they don't want to pay taxes on it. That seems pretty simple, right? In reality, their tax avoidance is more complex than you might expect. We're going to take a look at the different strategies that...

How Do Tax Havens Make Money?

How Do Tax Havens Make Money?

ax havens are a hot topic these days. They make money by helping businesses, wealthy individuals, and other investors keep their money away from the taxman. This is done in a variety of ways including bank secrecy laws that limit the amount of...

What is Called a Tax Haven?

What is Called a Tax Haven?

tax haven is a country or territory that offers favorable tax rates to foreign individuals, corporations, and other business entities. Tax havens can be either onshore or offshore and are typically characterized by strict banking secrecy laws in...

What is the Benefit of Being a Tax Haven?

What is the Benefit of Being a Tax Haven?

here are many benefits of being a tax haven, which is why so many people are drawn to this type of business. One of the main reasons that businesses choose to move their headquarters offshore is for the purpose of escaping high taxes and...

Is Switzerland a Tax Haven?

Is Switzerland a Tax Haven?

Switzerland is a small, landlocked country located in the Alps. It has been called a tax haven because it does not impose any taxes on personal income or capital gains - but is it really? Switzerland has one of the highest rates of taxation in...

How Can I Live Tax-Free?

How Can I Live Tax-Free?

any people are asking themselves this question. The answer is to move to a state that doesn't have any income taxes or sales tax, and then you will be able to live without having your hard-earned money go towards the government. It's not as...

Where Do the Rich Hide Their Money?

Where Do the Rich Hide Their Money?

he rich have a lot of money, so it is no surprise that they are always looking for ways to protect their assets. However, the question remains: where do they hide their cash? It can be hard to find out what people with a lot of money are doing...

Which Country Has No Tax?

Which Country Has No Tax?

axes are a big deal. In some countries, they cover up to 50% of the GDP. Some people believe that it would be better if there was no tax at all because that means each citizen's earnings will grow faster and more evenly. But which country has no...

Is Dubai a Tax Haven?

Is Dubai a Tax Haven?

he United Arab Emirates is a popular destination for ex-pats and internationals alike. The country has developed rapidly in the last 20 years, becoming one of the wealthiest countries in the world. But there are many who question whether Dubai is...

Are Tax Havens Good or Bad?

Are Tax Havens Good or Bad?

here are many arguments for and against the use of tax havens such as Switzerland, Luxembourg, or Barbados. Proponents argue that they are essential to free trade by protecting investments from taxation in other countries. Opponents claim it is a...

How Does a Tax Havens Work?

How Does a Tax Havens Work?

tax haven is a country with nominal taxes that have low or zero taxation on certain types of income. These countries typically offer favorable regulations for businesses and individuals to help them attract more capital. Tax havens can be used as...

Which Country is the Best Tax Haven?

Which Country is the Best Tax Haven?

he tax havens are a legal way of hiding money from the IRS. They allow people to put their wealth in offshore accounts, which don't have to be reported on any taxes until they're withdrawn. The United States government has been trying for years to...

Are Tax Havens Legal?

Are Tax Havens Legal?

ax havens are a controversial topic. Some people believe that tax havens are illegal, while others think they can be legal. In this article, we will explore the legality of tax havens to help you make an educated decision about whether or not it...

Best Books on Tax Havens

Best Books on Tax Havens

he best books on Tax Havens is a list of some of the most popular and reputable books that can help you learn about how to reduce your taxes by taking advantage of countries with low or no taxation policies. Whether you want to find out about the...