THE LITTLE BOOK OF VALUATION (BY ASWATH DAMODARAN)

As an Amazon Associate I earn from qualified purchases.

---

(If you sign up I earn a small commission)

---

Top 5 takeaways from Aswath Damodaran’s The Little Book of Valuation:
00:00 Intro
01:05 1. Two valuation approaches: Relative & Intrinsic value
02:12 2. A quick guide to relative valuation
05:05 3. A quick guide to intrinsic valuation
09:17 4. Truths about valuations
11:26 5. Context matters: Growth, Decline and Cyclicals

---

My goal with this channel is to help you make more money and improve your personal finances. How to become a millionaire? There are many ways to get there – investing in the stock market, becoming a stock trader, doing real estate investing, or why not becoming an entrepreneur? But whether you are interested in how to invest in stocks or investing strategies for creating passive income with rental properties – I hope to be able to provide you with a solution (or at least an idea) here. Warren Buffett - the greatest investor of our time - says that you should fill your mind with competing ideas and then see what makes sense to you. This channel is about filling your mind with those ideas. And in the process – upgrading your money-making toolbox.

[affansiddhiqui]

Can you make videos on other books of aswath damodaran like
1. Applied corporate finance
2. The dark side of valuation
It would mean a lot to me !

[GlorifiedTruth]

SI, I think you're making some of the highest quality videos on YouTube today. Peace! And thanks!

[vikrantc.]

The author of the book has a YouTube channel. His philosophy is amazing

[troytranter]

Could you give an example of using the intrinsic value formula in this video? So I could better understand it. 😊

[petterjohansson]

I'd love to see a video of you finding a stock, putting it through your filters and then determining if its good value or not. I really wanna have some kind of metric system and process to put stocks through but I've yet to figure out what the simplest and most usefull key numbers would be

[matthewphares]

This is more qualitative than quantitative with example calculations.

[deryaayoglu]

Owners earnings concept is first mentioned in 1986 by Warren Buffet and it does not include changes in working capital. Also in ‘buffet style’ book it is formulated as net income+non-cash-maintanence capital expenditures. Swedish Im your biggest fan pls answer this:)

[PENGCHEENSEE]

If I am gonna choose ten undervalued YouTube channel, you are definitely one of them. Keep up your good work, really appreciate that!

[adampeach]

Reading this one right now! The "little book" series is great! The only exception is the installment about canadian real estate - that book is a sales pitch for the authors website/community! 🤣
On the other hand, The little book of valuation is great!

[shaw]

Summary of summary:
Step 1: apply relative valuation. Look for companies in the same industry. Find companies with high earning per share and revenue growth.
Step 2: apply intrinsic valuation to the candidates from step 1. Estimate the present value of futurecashflow (discounted cashflow), and divide by number of shares to get EPS.
Compares the intrinsic EPS with the actual EPS to see if the company is undervalued.
Biases are unavoidable but should be kept at minimum.
The phase of company (growth, decline, cyclical) can impact valuation.
Valuation is always wrong. Good news is, it doesn't need to be exactly correct to make good investment decision.

[MRZEROTOINFINITY]

Lots of value appearing after this market sell off. 📉👀 Time to put some money to work in those undervalued companies! 🚀📈😎

[silverhawk]

You're not 100% correct, just look at TSLA. Also at 5:55 100% of WSB will pick the coin and then ask if they can do it again.

[sachastayswi]

Very nice video as usual. If you were to compare Damodaran's methods against those of Greenblatt, Buffett and Lynch, which one would you say is more pragmatic for the future and why?

[bobbymunyavi]

You would do well to create a course/a structure that those who want to learn investing can follow.

[michaelandrews]

I was going to ask you to summarize this book on another video, and you already did it! Earned my sub.

[leviAckerman]

Some people read book and than watch your videos some, don't get to read so that's why they watch yur videos. But this video has compelled me to read the book.

[firstlast]

Intrinsic valuation .. my ass, then comes dot com bust, banking crisis, covid 19, etc. Use your head, don’t waste your time listening to garbage videos.

[aguitarcalledchutzpah]

Nice vid but you didnt show how to value stocks. I need practical steps as well as the general philosophy

[mastershredder]

Aswath "Dono"daran has failed on valuing Amazon and tech growth stocks a million times over. He made up a staunch religion, comparable to Scientology for valuation, and tries to apply it to all different types of companies. This is his failure.

[jeanpolice]

Super !! One more tool to put me in the right direction.!! thanks 💪💪 ⭐