In the field of finance, the process of valuation comes to play a very important role. In simple terms, data valuation is a process, with the help of which, a Financial Analyst can figure out the current value of any particular asset or security.
In the field of investment banking, the skills of valuation become extremely important, as it is these skills, which help in facilitating various mergers and acquisitions. This is why a lot of finance professionals, have been on the lookout for getting thoroughly trained in the skills of valuation. Imarticus Learning, offers industry endorsed, specialization programs in Equity and Valuation and various other branches of finance.
While it is definitely important to try and learn everything, there is to become an expert at valuations. It is also important to supplement that knowledge with the help of books. Here’s a list of some of the best books on valuation.
1. The Intelligent Investor, Benjamin Graham
This book is considered to be one of the most important books, especially when it comes to investments and data valuation. It consists of all the strategies that an analyst can use, in order to achieve their goals as well as the ways, in which the risks can be minimized. It discusses the various concepts of value investing, so that one can easily understand the process of investing, on the basis of assets and profits.
2. Theory Of Investment Value, John Burr Williams
This book was first printed in 1938 and basically consists of information about stocks and the values of their present dividends. It gives a very detailed insight about the technique of Discounted Cash Flow, which is well known as the basis for all the investment decisions. Some of the major takeaways from this book are the process through which, discounted value can be derived and thus, enhance the earnings of the various businesses.
3. Valuation: Measuring and Managing The Value Of Companies, McKinsey & Company Inc.
This book is considered to be one of the most comprehensive guides, for corporate valuation. It goes on to reestablish some proven principles of value creation, which go on to completely deny the myths that supposedly prevail throughout the world. This book consists of important case studies, which analyze the historical performance of a company, as well as the rearranged financial statements, which help in having a closer look at the said company’s economic performance.
4. Equity Asset Valuation, John Stowe
This book is said to combine the concepts of finance and accounting, in a discussion, which provides consistency of notation as well as, the continuity of topic coverage. A number of topics are discussed in great detail here like, the application and processes of Equity valuation, concepts essential for evaluating an investment, discounted dividend valuation, free cash flow valuation, market based valuation, residual income valuation, private company valuation, enterprise and price value multiples and so on. This comprehensive coverage of topics, makes the book a very important read for all those, looking to increase their knowledge and hone their valuation skills.