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Investment Valuation by Aswath Damodaran
While not a trading book the the subtitle to this text is "Tools and Techniques for Determining the Value of Any Asset", Damodaran is not joking about that subtitle. I found this book from Neiderhoffer's Daily Speculations recommended book list and its what they recommended for a valuation text so it is quite quantantative.
Pretty much every usefull valuation model is presented here along with some unique ideas. Calculating the implied equity risk premium on the overall markets, using Black Scholes to value companies with negative earnings as an option on future cash flow, a cash flow model to price real estate, ect.
A handy compliment to the book is Damodaran's website where he houses excel sheets for all models presented in the book along with other data that is relevent, all broken down by chapters. Even more fascinating is if you poke around his website he houses video footage of his entire NYU MBA valuation class that this is the textbook for along with all the slides/homework for the class.
The downside to this book is that it is quite hard to get into as there is so much information but this book puts all other books on value investing to shame. Worth its weight in gold if you are willing to do the homework.
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| Author review |
| Trading Wisdom | | 1 |
| Insightful | | 5 |
| Unique Content | | 5 |
| Worth the Price | | 5 |
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Average 80%
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