The Best Valuation Books for Investing of 2021

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When it comes to getting started with investing, you want to make sure that you’re doing it right. And if you’re learning how to invest, one of the first things you need is training. For those without extensive experience, the best valuation books for investing might be a good idea.

These books will help you better understand what’s happening in the market and will make sure that you can invest with confidence. We’re going to take a look at some of our recommended valuation books for investing in three different categories. You’ll see the top of the line, the middle of the road, and the budget options.

If you want to just get back to studying, get our top choice for valuation books for investing here.

Our Top Favorite
Valuation: Measuring and Managing the Value of Companies (Wiley Finance)
Our Top Runner Up
Dark Side of Valuation, The: Valuing Young, Distressed, and Complex Businesses
Our Top Value Pick
The Little Book of Valuation: How to Value a Company, Pick a Stock and Profit
Book Title
Valuation: Measuring and Managing the Value of Companies
The Dark Side of Valuation: Valuing Young, Distressed, and Complex Businesses
The Little Book of Valuation: How to Value a Company, Pick a Stock and Profit
Prime Eligible?
Our Top Favorite
Valuation: Measuring and Managing the Value of Companies (Wiley Finance)
Book Title
Valuation: Measuring and Managing the Value of Companies
Prime Eligible?
Our Top Runner Up
Dark Side of Valuation, The: Valuing Young, Distressed, and Complex Businesses
Book Title
The Dark Side of Valuation: Valuing Young, Distressed, and Complex Businesses
Prime Eligible?
Our Top Value Pick
The Little Book of Valuation: How to Value a Company, Pick a Stock and Profit
Book Title
The Little Book of Valuation: How to Value a Company, Pick a Stock and Profit
Prime Eligible?

Last update: 2021-04-02

Our Favorites for Best Valuation Books for Investing

When it comes to valuation books, you may want to splurge a little to make sure that you’re getting the absolute best of the best. If that’s the case, take a look at this section, which includes our best valuation books. You should get everything you need to know out of any of these, whether you’re taking a class or you’re planning to go at it entirely on your own.

Valuation: Measuring and Managing the Value of Companies by McKinsey & Company

With Valuation, you’ll get an in-depth look at the field of valuation. With one of the best books to learn business valuation, you’ll be getting assistance that the professionals use. You’ll get strategic advantages related to value-based management as well as detailed instructions to help you through the process, whether this is your first time valuing a company or you’ve been doing it for a long time already.

You’ll learn about different nuances, techniques, and more that are related to specific industries to make sure you’re prepared for various aspects of valuation. On top of that, you’ll learn how to estimate business values, how to understand the best business units, and how to design the right capital structure to improve your strategy while decreasing the overall risk.

Why Choose This Valuation Book for Investing:

  • Includes detailed instructions for valuing companies within different industries
  • Focuses on the various aspects of valuation that are required in order to create an effective strategy

What Makes This Valuation Book for Investing Unique:

  • Provides insights that are used by the most prominent professionals in the field to make accurate and positive decisions
  • Details how to choose different types of transactions as well as the best-positioned units within a business
On Sale
Valuation: Measuring and Managing the Value of Companies (Wiley Finance)
Valuation: Measuring and Managing the Value of Companies (Wiley Finance)
  • Hardcover Book
  • McKinsey & Company Inc. (Author)
  • English (Publication Language)

Last update: 2021-04-02


Investment Valuation: Tools and Techniques for Determining the Value of Any Asset by Aswath Damodaran

When making a decision related to investing, it’s essential to look at all of the factors and especially to complete comprehensive valuation. That’s what Investment Valuation is all about. You’ll learn about the current market conditions as well as lessons that have been learned from the market crisis and emerging markets over the past five years. Not only that, but you’ll learn about the entire life cycle of a company and how the valuation process works within it.

With Investment Valuation, you’ll get a full chapter on the new field of probabilistic valuation techniques, and you’ll have value enhancement instruction in areas such as CFROI and EVA. With Investment Valuation, you’ll have information you can use whether you’re just getting started or you’ve been working in the field of investment valuation for a long time.

Why Choose This Valuation Book for Investing:

  • Focused on newer concepts and methodologies related to valuation in the last five years
  • Provides a detailed understanding of different valuation techniques to improve skills for new and experienced investors alike

What Makes This Valuation Book for Investing Unique:

  • Includes a full chapter related to probabilistic valuation for those looking into newer methods for investment
  • Written by a professional within the field of investment valuation
On Sale
Investment Valuation: Tools and Techniques for Determining the Value of Any Asset
Investment Valuation: Tools and Techniques for Determining the Value of Any Asset
  • Used Book in Good Condition
  • Hardcover Book
  • Damodaran, Aswath (Author)

Last update: 2021-04-02


Runner Ups for Best Valuation Books for Investing

Next up are the runner ups, which are high-quality books but might not give you quite as much information as our favorites. These are books that will help supplement a class or supplement one of the favorites books that we have above. Or you could read a few of the runner ups and get a thorough understanding.

The Dark Side of Valuation: Valuing Young, Distressed, and Complex Businesses by Aswath Damodaran

With The Dark Side of Valuation, you’ll learn about some of the more difficult types of businesses that you can invest with. These include companies that are just starting out as well as those that are higher risk or that have more complicated situations requiring in-depth research and care. With The Dark Side of Investing, you’ll be able to create your own methods of valuation as well as how to decide whether any of these types of businesses are a good choice for you.

Damodaran looks at how to look at negative risk-free rates, how to adapt to different types of risk premiums, and how to create an accurate valuation for a new company that seems to be disrupting the current business cycle. You’ll also learn how to value a company properly, how to recognize the difference between pricing and valuation, and a great deal more.

Why Choose This Valuation for Investing Book:

  • Learn how to make accurate decisions on investments for more complicated situations and cases
  • Increase your potential for growth and return on investment by joining forces on more difficult businesses

What Makes This Valuation for Investing Book Unique:

  • Examines the dark side of different types of difficult businesses and how to make sure you’re valuing them properly
  • Ensures you don’t completely abandon all of your valuation skills when confronted with a unique opportunity
On Sale
Dark Side of Valuation, The: Valuing Young, Distressed, and Complex Businesses
Dark Side of Valuation, The: Valuing Young, Distressed, and Complex Businesses
  • Damodaran, Aswath (Author)
  • English (Publication Language)
  • 800 Pages - 05/04/2018 (Publication Date) - Pearson FT Press (Publisher)

Last update: 2021-04-02


Financial Modeling and Valuation: A Practical Guide to Investment Banking and Private Equity by Paul Pignataro

You can use Financial Modeling and Valuation to develop a step-by-step economic model that’s actually used on Wall Street. You’ll learn how to create this model and how to improve it through simple programs like Excel. You’ll also get all of the different aspects of the model, including income statements, balance sheets, depreciation schedules, working capital schedules, and more.

With Financial Modeling and Valuation, you’ll have in-depth information and details related to the methods that are actually in use by those on Wall Street through the exhibition of company analyses, precedent transitions analysis, and discounted cash flow analysis. You’ll even get a step-by-step example of how to create a valuation using Wal-Mart as a source.

Why Choose This Valuation Book for Investing:

  • Step-by-step instructions included on creating the right model for valuing companies
  • Includes an example of how this model works in a real-world situation for better understanding

What Makes This Valuation for Investing Book Unique:

  • Includes chapter questions as well as practice models and case studies to make retaining the information even easier
  • Includes interview questions and a companion website to help you learn even more information
On Sale
Financial Modeling and Valuation: A Practical Guide to Investment Banking and Private Equity
Financial Modeling and Valuation: A Practical Guide to Investment Banking and Private Equity
  • Used Book in Good Condition
  • Hardcover Book
  • Pignataro, Paul (Author)

Last update: 2021-04-02


Value Pick for Best Valuation Books for Investing

If you just need some help with basic concepts or you only need an in-depth look at one area or another, these value books will be a great option. They either give you a lot of information about one thing or a little information about a lot of things. So, they could also be a good option for those who aren’t sure if they want to get into investing.

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

Anyone that’s looking to get started with valuation can begin with The Little Book of Valuation. You’ll learn about the basics of how to value a company and what it takes to get moving in this fast-paced process. You’ll also get case studies and examples that make it easier for you to understand what you’re learning throughout the book and so you can practice on real-world businesses, even if you’re not looking to invest with them.

You’ll get a guide that’s written by someone who is well-known within the field as well as an app that helps you to study and learn even more while you’re on the go. You’ll be able to learn about investing as an individual, which is excellent for those who want to get started in the stock market but aren’t quite sure how to do it.

Why Choose This Valuation Book for Investing:

  • Includes several case studies you can use to apply the information you’re learning in a realistic situation
  • Offers information that can be used by beginners to start investing for their own personal use

What Makes This Valuation Book for Investing Unique:

  • Includes an iPhone application that helps apply the information that you’ll learn through the book
  • Discusses several different valuation approaches so you can find something you’re comfortable with
On Sale
The Little Book of Valuation: How to Value a Company, Pick a Stock and Profit
The Little Book of Valuation: How to Value a Company, Pick a Stock and Profit
  • Hardcover Book
  • Damodaran, Aswath (Author)
  • English (Publication Language)

Last update: 2021-04-02


How to Choose the Best Valuation Books for Investing for You

If you’re looking for a little more information about choosing your own books, take a look here. We’re going to talk about a few of the essential things you should be asking yourself before you decide to take on the challenge of choosing a book that will get the job done for you.

Are You an Undergrad Looking to Learn About Valuation?

The information that you’re going to need as an undergraduate student is in-depth, but it’s definitely not the same as what you would expect a graduate student to know. You may be okay with books in the runner up category or similar, which will give you an excellent supplement to go along with an undergrad course. A simpler book will be a great way to help you improve what you’re already learning in your courses.

Are You a Finance Professional or an Aspiring MBA?

If you’re looking to become a professional or you already are a professional, you’re going to want high-quality books that will give you all of the details about all the areas you might come into contact with. You’ll want to look at our favorites category and others like them, as well as books that go into extreme detail on each component of valuation. This will allow you to advance your education much faster.

Are You Looking for a General or Specific Valuation Book?

Do you want to learn a little about valuation in general, or are you looking to learn more about a specific concept? Knowing what you’re actually looking for is going to be instrumental in getting the type of book that you actually want. General books are typically less expensive as well, which is an added bonus.

Wrapping Things Up: The Best Valuation Books for Investing

Putting everything together, in this guide we reviewed the following:

Our Top Favorite
Valuation: Measuring and Managing the Value of Companies (Wiley Finance)
Our Top Runner Up
Dark Side of Valuation, The: Valuing Young, Distressed, and Complex Businesses
Our Top Value Pick
The Little Book of Valuation: How to Value a Company, Pick a Stock and Profit
Book Title
Valuation: Measuring and Managing the Value of Companies
The Dark Side of Valuation: Valuing Young, Distressed, and Complex Businesses
The Little Book of Valuation: How to Value a Company, Pick a Stock and Profit
Prime Eligible?
Our Top Favorite
Valuation: Measuring and Managing the Value of Companies (Wiley Finance)
Book Title
Valuation: Measuring and Managing the Value of Companies
Prime Eligible?
Our Top Runner Up
Dark Side of Valuation, The: Valuing Young, Distressed, and Complex Businesses
Book Title
The Dark Side of Valuation: Valuing Young, Distressed, and Complex Businesses
Prime Eligible?
Our Top Value Pick
The Little Book of Valuation: How to Value a Company, Pick a Stock and Profit
Book Title
The Little Book of Valuation: How to Value a Company, Pick a Stock and Profit
Prime Eligible?

Last update: 2021-04-02

If you’re looking for the absolute best book you can get on valuation, then you’re going to want Valuation. It offers you an in-depth look at how to value companies and what you need to know in order to make effective and quality investment decisions. For those who want another guide or who are looking at our runner up section, you’ll want to look at The Dark Side of Valuation, which will give you even more guidance and help for those more exciting investment options. You’ll learn how to value more risky investments. Finally, in our budget options, you’ll want to check out The Little Book of Valuation, which gets you the basics you need to make investments as an individual and for the first time.

If you found this post helpful, you’re definitely going to like our other financial and professional books here.

>The Best Financial Modeling Books

> The Best Investment Banking Books

> The Best Wealth Management Books

> The Best Strategy Books

Professor Conquer
Professor Conquer

Professor Conquer started Conquer Your Exam in 2018 to help students feel more confident and better prepared for their tough tests. Prof excelled in high school, graduating top of his class and receiving admissions into several Ivy League and top 15 schools. He has helped many students through the years tutoring and mentoring K-12, consulting seniors through the college admissions process, and writing extensive how-to guides for school.

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