Hey all,
I have decided to take start learning about valuation and the like, and want to know every ones favorite book on it. The main ones I am looking at are:
Rosenbaum and Pearl
Damodaran
McKinsey
Thanks!
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Rosenbaum is very accessible. It's the first one I looked at and gives you sufficient explanation to get the basis of valuation and modeling. I didn't do it, but I assume that if you focus and do Rosenbaum with excel by your side to actually do things step by step, it would be a solid tool.
Valuing a Business, Shannon P. Pratt -- more oriented toward business valuation professionals than the books you mentioned. Very detailed and ties everything back to the application
Seconded. This book is excellent.
Rosembaum is great for learning about valuation in ibd...
But Damodaran is the holy bible of valuation theory. Thick read but it covers everything, and it isn't as dry as Security Analysis
I've read all 3, McKinsey was shit compared to the other 2
Which Damodaran one you refer to? Damodaran on Valuation or Investment Valuation?
Same with me. I am going to start with Damodaran and Shannon Pratt. And I think corporate finance for the basic of finance.
Thanks guys! I think I am going to start with Rosenbaum. Seems like a solid first read to prepare me for my internship this summer.
Skip the McKinsey book if for no other reason than their constant arguing that depreciation should be a cash expense. That argument would be an insta ding in any ib interview.
The Rosenbaum and Pearl book is great and fairly easy to read. Valuation for Mergers, Buyouts and Restructuring by Enrique Arzac is frequently used in M&A classes, and many senior bankers at my bank have a copy in their office, but it is not the easiest read and (in my opinion) does a poor job at actually explain the valuation process to you.
EDIT: If this is for interview preparation, I'd just stick with interview guides and the Rosenbaum & Pearl book.
Assuming that you have close to 0 experience in valuation: start with Rosenbaum, will give you a good basic understanding. Then read Damodaran's Applied corporate finance, Investment Valuation and The Dark Side of Valuation. You can get PDF versions of all three on his homepage if you click around a bit.
and I fully agree with everyone else on the McKinsey book, though. Don't waste your time.
The Mckinsey Valuation book. 5th Ed. by Marc Goedhard
Best Valuation Book? (Originally Posted: 02/10/2007)
Any recommendations? I have very little knowledge of valuation concepts and have never taken a finance class before.
Damodaran writes a few good ones.
agree - damodaran from NYU is quite good. Depends on the topic though - do you mean asset valuation, security valuation, there are several topics which could fit the bill.
thanks for the damodaran tip.
i have a final round interview with a big 4 valuation group
the job description is as follows:
• Analyzing competitive industry dynamics and financial condition of peer companies, evaluating business plans, adjusting financial statements, and building cost allocation models. Techniques include discounted cash flow analyses, CAPM, market multiples methods and replacement cost valuation approaches.
• Participating in due diligence activities on pending M&A transactions, public-company purchase price allocations, goodwill impairment measurement, international restructurings and private-company fairness opinions
• Valuing tangible assets and intangible assets such as trademarks, developed technology, in process R&D, customer relationships, contracts, backlog, patents, covenants-not-to compete and workforces
• Assisting in report preparation, proposals and executive presentations
Read damodaran. Maybe Ross Westerfield Jaffe if you want something a little lighter.
You can also view his webcasts on his website. He has a specific valuation class.
what about an intership in the Deloitte FAS valuation group? Good experience to spin later in hopes of landing IB? Or should I go into corp finance?
valuation books... Deloitte reccomends:
There are numerous books authored by Pratt and also Damodaran on practical valuation. In your spare time I would recommend reading at least the summaries of FASB statements 141 and 142. They can be found at www.fasb.org
If you are interested in options read FASB 123R, 133,155, & 159.
Valuation book? (Originally Posted: 04/23/2011)
Which book would be most helpful in understanding valuation/modelling?
Joshua Pearl's "Investment Banking: Valuation, Leveraged Buyouts, and Mergers and Acquisitions" is something everyone suggests. Is the ROI high enough? Any thoughts?
For interview preparation it is in my opinion the best book out there on the market. Also pretty good if you know your shit already from university classes as a refresher. It focues on the most important things and is highly practical. Actually it's also more fun to go over it instead of enjoying Damaodaran's >1,000 pages.
That's a good book, particularly on the modeling part. As to a good book to understand valuation, for me the best is "Valuation" by Koller, Goedhart and Wessels. Another great book once you have gone through the basics is the 2nd edition of Damodaran's "The dark side of valuation".
Another book similar to Pearl's is "Corporate Valuation" by Wharton's Robert Holthausen (focus on specifics of modeling and financial statements analysis)
The thing is, I am a complete noob when it comes to valuation. I shall be attending a Masters program this coming Fall and wish to prep myself for FT recruiting. So for a beginner will Joshua Pearl's book be the best?
I am reading Joshua Rosenbaum's and Joshua Pearl's "Investment Banking: Valuation, Leveraged Buyouts, and Mergers & Acquisitions" right now. As the foreward of the book suggests, it definitely "bridges the theoretical to the practical with user-friendly, step-by-step approaches to performing primary valuation methodologies." Very easy to understand - two thumbs up.
I have Rosenbuam's and Pearl's book... pretty straight foreward and easy to use
Joshua's book covers the technical side of valuations/modeling. If you want to understand the theoretical aspect, go for http://www.scoopbooks.com/
Another strong endorsement for "Investment Banking: Valuation, Leveraged Buyouts, and Mergers and Acquisitions". Really simple to follow, and contains the only review of LBO modeling I have seen (note: if anyone has any recommendations on LBO review material, I am always interested in reference material...).
Good book on asset valuation? (Originally Posted: 02/12/2015)
Hi guys,
can you recommend a good book to read on asset valuation? the kind that might be useful in a distressed/special situation please? (not talking about stock/security valuation here, thanks!)
thanks!
Physical assets like machinery & equp?
best book to learn valuation methods (Originally Posted: 07/18/2013)
Was wondering what book is best to learn valuation methods (dcf, comparable company analysis, precedent transaction analysis)
Investment Banking by Rosenbaum and Pearl
What he/she said. ^^
PM me if you want a pdf copy
Personally I think The Practitioner's Guide to Investment Banking, Mergers & Acquisitions, and corporate finance from Castillo & McAniff is the most comprehensive work out there. However, Rosenbaum and Pearl's book is GREAT for LBO modeling.
I am new to the forum and hence don't have points to PM you. Can you please PM me the link?
I to am in the same boat. Would you PM me the PDF?
Or... www.google.com---> Rosenbaum & Pearl Investment Banking pdf ---> Search ---> Voila
Best Book/Preperation on Valuation to Self-Study? (Originally Posted: 08/07/2008)
Thanks
If you can understand Damodaran, you can pretty much understand everything you need for corporate finance. We had him for 3 days during training, and I learned more in those three days than I did in a full year of finance classes in college. Read Damodaran's website, since he has all his books, spreadsheets, etc. online for free. Other than that just enjoy the summer- your b-school classes will cover almost everything you want/need. There are a good amount of people going to b-school with no finance background so don't worry. Reading something like Liar's Poker or Barbarians at the Gate would probably be worthwhile and less monotonous than reading textbooks.
Scoop Books - Inroduction to Ibanking, M&A, and Corp. Fin Best book hands down. Expensive but worth it
having 1 or 2 free months after you quit to do what you've always wanted to do is a unique priviledge that comes with getting accepted to B-school. PLASE don't waste it reading in advance what you'll learn in school.. travel, go to the beach, fly kites or whatever you enjoy....it'll be tons of finance to learn the next 2 years in school...
Aswath Damodaran. You can get his book for free on his website, http://pages.stern.nyu.edu/~adamodar/
currently reading Damodaran on Valuation 2nd ed., very interesting book.
New banking book on valuations (Originally Posted: 06/11/2009)
Have anyone heard about/read this book? Although it has 5 star rating based on 11 user reviews, one of my upper-division writing professors showed us a poorly written book that had 4.5 stars based on 10 reviews (most of Amazon reviewers were relatives/friends of the author).
Investment Banking: Valuation, Leveraged Buyouts, and Mergers and Acquisitions
http://www.Amazon.com/Investment-Banking-Valuation-Leveraged-Acquisitions/dp/0470442204/ref=cm_cr_pr_product_top
http://www.scoopbooks.com/ourbooks_2.php
SCOOP books IB book is hands down the best resource I have seen...kind pricey but worth it
Haha, yeah my VP just got it in from Amazon, its sitting on his desk right now actually with a bunch of splooge stains on it (yes, I said splooge).
Swear to god, he looked like he wanted to close his door and whack off all over the cover.
Marcus-
for once, can you please write a coherent message with some worthwhile content to it? One would get just about nothing from reading hundreds of your posts on here. Thanks.
If you don't like my posts dont read them, dick wad. No one on here owes you shit.
Well, a lot of Damadoran's stuff, while interesting, is very academic (rather than practical). So, I purchased this along with a MM focused book. I'll let ya know what I think when it gets here.
Could you tell me what is the name of the MM focused book that you ordered?
Mergers & Acquisitions: An Insider's Guide to the Purchase and Sale of Middle Market Business Interests by Dennis J. Roberts
It's not a valuation book, though it includes that, but more of an overview and outlook on the future of the MM space from a buyside and sellside perspective. My boutique works from lower->middle->large market, so I thought it would be helpful considering the lack of literature about the MM space.
I ordered a copy right when it was published in May and enjoyed it. Here is a link to the review I wrote about it last month.
http://investmentbankinginterviewprep.blogspot.com/2009/05/must-read-in…
IBDBlogger www.ibdprep.com
[quote=IBDBlogger]I ordered a copy right when it was published in May and enjoyed it. Here is a link to the review I wrote about it last month.
http://investmentbankinginterviewprep.blogspot.com/2009/05/must-read-in…
IBDBlogger www.ibdprep.com[/quote]
Thank you Blogger, out of all wanna-look-like-Brian's M&I, your blog seems very legit and helpful.
Damodaran is the king of valuations. Buy the books and follow his blog musing on markets. Cheers
book recommendation - Best book on valuation? (Originally Posted: 06/27/2007)
What's the best book on valuation to buy for an aspiring equity analyst? What I am looking for is something based on profound cost, managerial and financial accounting knowledge. I already have the Damodaran one by the way. And let me know if there is no such thing. Thanks in advance.
Applied Equity Analysis, by James English
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