Valuation concepts and valuation of securities

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valuation concepts and valuation of securities

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

An accessible, and intuitive, guide to stock valuation Valuation is at the heart of any investment decision, whether that decision is to buy, sell, or hold. In The Little Book of Valuation, expert Aswath Damodaran explains the techniques in language that any investors can understand, so you can make better investment decisions when reviewing stock research reports and engaging in independent efforts to value and pick stocks.

Page by page, Damodaran distills the fundamentals of valuation, without glossing over or ignoring key concepts, and develops models that you can easily understand and use. Along the way, he covers various valuation approaches from intrinsic or discounted cash flow valuation and multiples or relative valuation to some elements of real option valuation.


Includes case studies and examples that will help build your valuation skills Written by Aswath Damodaran, one of todays most respected valuation experts Includes an accompanying iPhone application (iVal) that makes the lessons of the book immediately useable Written with the individual investor in mind, this reliable guide will not only help you value a company quickly, but will also help you make sense of valuations done by others or found in comprehensive equity research reports.
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Published 17.12.2018

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Security Valuation: Meaning and Factors | Financial Economics

We think you have liked this presentation. If you wish to download it, please recommend it to your friends in any social system. Share buttons are a little bit lower. Thank you! Published by Diana Hensley Modified over 3 years ago. Value of any security, simply speaking, is the present value of all expected cash flows to be generated by the security over the relevant time period.

Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. If you continue browsing the site, you agree to the use of cookies on this website. See our User Agreement and Privacy Policy. See our Privacy Policy and User Agreement for details. Published on Jul 24, Valuation of various securities like equity shares, preference shares and debenture.

In finance , valuation is the process of determining the present value PV of an asset. Valuations can be done on assets for example, investments in marketable securities such as stocks , options , business enterprises, or intangible assets such as patents and trademarks or on liabilities e. Valuations are needed for many reasons such as investment analysis , capital budgeting , merger and acquisition transactions, financial reporting , taxable events to determine the proper tax liability. Common terms for the value of an asset or liability are market value , fair value , and intrinsic value. The meanings of these terms differ.

Cash Flow and Risk

The purpose of the valuation can have a substantial impact on the estimated value. All assets can be valued, be they stocks, bonds, derivatives, real estate, personal property and many others. It can be difficult to reconcile your own ideas about the market value of a security with other ideas you may hold about what the asset is worth to you. You may have heard other people say that an illiquid security, such as privately held stock in a small company, is only worth what someone is willing to pay for it. In a sense this is true, although a hypothetical deal price is only one of many baselines for determining the value of a security.

In this article we will discuss about:- 1. Meaning of Security Valuation 2. Factors Influencing Security Valuation 3. Securities Valuation in India. Security valuation is important to decide on the portfolio of an investor.

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

  1. Valuation Concepts: Valuation is based on economic factors, industry variables, and an analysis of the financial statements and the out look for the individual firm.

  2. Valuation Concepts: Valuation is based on economic factors, industry When a firm is considering the purchase of marketable securities- debt.

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