Stock Valuation

About the book and its Contents

A 360 page work, Stock Valuation is definitely one of the most essential books you will need to understand how to know how much a company is worth. 

Review

This is one book I've learned a lot from. It teaches you everything you need to come up with a valuation of the company (not a simple task). Firstly, it will give you an orientation of the investment and finance market. Secondly, it will discuss the time value of money. Thirdly, it will teach you how to interpret and analyze systematically a company's financial statements. Fourthly, it will teach you how to compute for a company's cost of capital. Finally, it will teach you several valuation models, one of which is the discounted cash flow model.

Difficulty Level = 4/5

If you aren't interested in how to compute for a company's net worth (a must if you truly want to be a long-term investor), then you might not want to invest in this book, yet. However, if you truly want to learn and gain a new edge, then studying this book, even slowly, will reap rewards.

Personal Rating = 5/5

Although a bit more expensive than the usual investment books, this is worth the knowledge you will uncover.


Personal finance tip for today:

Having the mindset on how to manage money is very important. Even if you have little money but know how to manage it, then you will have a comfortable life. However, if you have a lot of money, but do not know how to properly utilize it, then you will end up losing that wealth and keep looking for more and more.


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