Last week we provided a list of 10 of the best investment podcasts. You can find the link here:
10 of the Best Investment Podcasts on the Planet (2023)
This week’s list is 10 of the best books on stock valuation and business. This list is by no means complete and certainly in no particular order. If you’re an investor, take a moment to check out the books on this list, they’ll provide a great starting point for your investment 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 presents the “magic formula” for stock valuation that focuses on buying high-quality companies at a discount to their intrinsic value.
- The Intelligent Investor by Benjamin Graham – A classic value investing book that provides a comprehensive overview of stock valuation techniques, including the concept of margin of safety, which is critical in determining the intrinsic value of stocks.
- “Valuation: Measuring and Managing the Value of Companies” by McKinsey & Company – This book offers a comprehensive framework for valuing companies, including various valuation methods such as discounted cash flow (DCF), comparable company analysis (CCA), and precedent transaction analysis (PTA), and discusses the multiplicity of the acquirer as well.
- Security Analysis by Benjamin Graham and David Dodd – Considered the bible of value investing, this book provides in-depth insight into various valuation techniques and investment strategies, including detailed analysis of financial statements, earnings power value, and valuation based on assets.
- “Acquirer’s Multiple: How Billionaire Deep Value Contrarians Beat the Market” by Tobias Carlyle – 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 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 Kohler, Richard Dobbs, and Bill Hewett – This book presents a comprehensive approach to corporate valuation, covering topics such as cash flow valuation, cost of capital, and intangible asset valuation.
- Quality Investing: Owning the Best Companies for the Long Term by Lawrence A. Cunningham, Torkel T. Eide, and Patrick Hargreaves – This book focuses on the importance of quality in stock valuation and provides insight into identifying high-quality companies with longevity competitive advantages.
- “Investment Valuation: Tools and Techniques for Determining the Value of Any Asset” by Aswat Damodaran – A widely used valuation textbook, this book covers a variety of valuation methods, including discounted cash flow (DCF), relative valuation, and real option 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 use them to make business decisions. There is a high demand among business students for course materials that provide a framework for using financial statement data in a variety of business analysis and evaluation contexts.
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