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Damodaran on Valuation: Security Analysis for Investment and Corporate Finance, 2nd Edition

Damodaran on Valuation: Security Analysis for Investment and Corporate Finance, 2nd Edition

Aswath Damodaran

ISBN: 978-1-118-16108-1

Sep 2011

696 pages



"Aswath Damodaran is simply the best valuation teacher around. If you are interested in the theory or practice of valuation, you should have Damodaran on Valuation on your bookshelf. You can bet that I do."
-- Michael J. Mauboussin, Chief Investment Strategist, Legg Mason Capital Management and author of More Than You Know: Finding Financial Wisdom in Unconventional Places

In order to be a successful CEO, corporate strategist, or analyst, understanding the valuation process is a necessity. The second edition of Damodaran on Valuation stands out as the most reliable book for answering many of today?s critical valuation questions. Completely revised and updated, this edition is the ideal book on valuation for CEOs and corporate strategists. You'll gain an understanding of the vitality of today?s valuation models and develop the acumen needed for the most complex and subtle valuation scenarios you will face.

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Chapter 1: Introduction to Valuation.

Introduction to Chapters 2-6: Discounted Cashflow Valuation.

Chapter 2: Estimating Discount Rates.

Chapter 3: Measuring Cash Flows.

Chapter 4: Forecasting Cash Flows.

Chapter 5: Equity Discounted Cash Flow Models.

Chapter 6: Firm Valuation Models.

Introduction to Chapters 7-9: Relative Valuation.

Chapter 7: Relative Valuation: First Principles.

Chapter 8: Equity Multiples.

Chapter 9: Value Multiples.

Introduction to Chapters 10-17: Loose Ends in Valuation.

Chapter 10: Cash, Cross Holdings and Other Assets.

Chapter 11: Employee Equity Options and Compensation.

Chapter 12: The Value of Intangibles.

Chapter 13: The Value of Control.

Chapter 14: The Value of Liquidity.

Chapter 15: The Value of Synergy.

Chapter 16: The Value of Transparency.

Chapter 17: The Cost of Distress.

Chapter 18: Closing Thoughts.


  • Completely revised edition covering the most qualitative and subtle topics in valuation
  • Real world examples and new valuation tools and issues are addressed, to reflect the more complex realities of corporate and investment valuation in today’s marketplace.
  • Valuation content is now targeting the essential “big picture” issues faced by CEOs and corporate strategists, such as understanding the links between corporate strategy and value, marketing and value, transparency and value, brands and value, and operational efficiency and value.