"Aswath Damodaran′s work is always worth reading.... For investors and students of the financial markets who want to embark on serious fundamental analysis, it is critical to understand how to go about valuing stocks and other instruments. There is no short cut.... Damodaran′s Investment Valuation explains the hard work part." ( Seeking Alpha , May 2012)
From the Inside Flap
Since the last edition of Investment Valuation was published over a decade ago, much has changed in the world of finance. For those interested in valuation, these years have been extremely eventful. Now, in the Third Edition of Investment Valuation , New York University Stern Business School Professor Aswath Damodaran—one of the nation′s top business school professors—returns with a fully updated edition of his classic text. While written to reflect current market conditions, this reliable resource also stays true to previous editions with coverage of a wide range of tools and techniques, both new and old, for determining the value of any asset, including the valuation of stocks, bonds, options, futures, real assets, and much more. Using updated examples and the most current valuation tools, this Third Edition addresses a variety of new issues that pose complex valuation problems. Page by page, Damodaran guides you through the theory and application of different valuation models and clarifies the entire process from cash flow valuation and relative valuation to acquisition valuation. Engaging and accessible, this revised Third Edition of Investment Valuation : Explores important valuation lessons gleaned from the recent market crisis and provides valuable insights on financial fundamentals—such as risk–free rates, risk premiums, and cash flow estimation—that came to light during this time Offers an increased focus on emerging market companies, which have come to the forefront with the growth of Asia and Latin America Includes valuation practices across the life cycle of companies and emphasizes value enhancement measures such as economic value–added (EVA) and cash flow return on investment (CFROI) Contains a new chapter on probabilistic valuation techniques that includes scenario analysis, decision trees, and simulations Discusses how to choose the right valuation model for any given asset valuation scenario And much more Investment Valuation , Third Edition thoroughly explains the valuation process from the ground up and offers you some of the most flexible approaches to valuing assets. Now you can easily access a significant number of datasets and spreadsheets associated with this book online at damodaran.com. In fact, the valuations will constantly be updated online, so you can have a closer link to real–time valuations. Filled with detailed case studies and proven valuation models, this indispensable guide is a must–read for anyone wishing to gain a better understanding of investment valuation and its methods. With it, you can take the insights and advice of a recognized authority on the valuation process and immediately put them to work for you.