The Little Book of Valuation

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The Little Book of Valuation: How to Value a Company, Pick a Stock, and Profit

by Aswath Damodaran

How do you determine if a stock is overpriced or a bargain? NYU finance professor Aswath Damodaran explains.

“There are dozens of valuation models but only two valuation approaches: intrinsic and relative… The intrinsic value of an asset is determined by the cash flows you expect that asset to generate over its life and how uncertain you feel about these cash flows. Assets with high and stable cash flows should be worth more than assets with low and volatile cash flows… In relative valuation, assets are valued by looking at how the market prices similar assets.”

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The Interpretation of Financial Statements

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The Interpretation of Financial Statements: The Classic 1937 Edition

by Benjamin Graham and Spencer B. Meredith. New Introduction by Michael F. Price

Benjamin Graham (1894-1976) was a pioneer in the field of value investing. He is most famous for being Warren Buffet’s teacher at Columbia Business School. The Interpretation of Financial Statements was originally published in 1937. This 122-page book focuses on the balance sheet and income statement. Graham also wrote Security Analysis, first published in 1934, and The Intelligent Investor, first published in 1949. Continue reading “The Interpretation of Financial Statements”

Seeing the Big Picture: Business Acumen

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Seeing the Big Picture: Business Acumen to Build Your Credibility, Career, and Company

by Kevin Cope

The premise of this book is that an employee who understands business fundamentals will be taken more seriously by management. “If, through your questions, ideas, comments, analysis, proposals, and performance, you exhibit business acumen, you will be seen as a more valuable contributor. You will demonstrate your worth to the company, and other people will notice.” Continue reading “Seeing the Big Picture: Business Acumen”