Review: “Valuation: Measuring and Managing the Value of Companies”

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Written by Tim Koller, Marc Goedhart, and David Wessels, Valuation is a book that teaches readers everything related to valuation. If finance is a career that interests you, then understanding valuation will be of huge benefit, making this book a potential keeper in terms of mastering the topic. So, let us go over five of the most notable things you should consider before purchasing this book.

Key Takeaways

  • “Valuation” extensively covers corporate finance, including valuation, stock analysis, accounting, and finance equations.

  • The book offers an in-depth exploration of finance topics, catering to readers seeking a detailed understanding.

  • Ranging from easy-to-understand to advanced concepts, the book suits beginners and those with financial backgrounds.

  • Some topics overlap, providing reinforcement for beginners but potential boredom for experienced readers.

  • Ideal for finance students and enthusiasts looking to solidify corporate finance knowledge

An All in One Guide

Valuation contains an encyclopedia of information regarding the corporate finance world. If you were or are an undergraduate finance student, you would be reading about topics that span the entirety of your degree. From valuation, stock analysis, basic accounting, and important finance equations, this book is a valuable resource for those trying to gain understanding on topics you would learn when studying finance, acting as an ultimate finance information resource.

Extensive

This book (depending on the edition you get) can span up to 800 pages long. Obviously, this book has a ton of information at your disposal, spanning a range of topics throughout its pages. If you’re looking for a book that is on the quicker side, then maybe avoid this read, but if you’re looking to get your brain filled with as much financial knowledge as you can possibly pack-in, then this book will surely be your fix.

Check the Difficulty

While Valuation has some topics that are easy to understand, some ideas are much harder than others. For example, discounted cash flow, a method of valuation that is written about, is a topic you would find in a 300-level course in college. So, if you have zero financial background or understanding, this book may prove to be a valuable, but challenging read.

Repetition

Having such a large book, it is no surprise that topics tend to overlap. However, there are times in this book that certain areas are covered multiple times. On one hand, education through repetition is effective, and for those who are beginners to finance, this repetition may be welcomed to cement important ideas into your understanding. However, for more experienced finance readers, the book may cover areas that are already familiar too, and the recurrence of these topics may put you to sleep.

Small Nitpick, Small Text

More of a recommendation than complaint, but something that we feel is important to readers. The pages of this book contain small text, looking similar to a college textbook in terms of how much can be packed into each page. This fact leads us to warn against buying this book electronically. A smaller screen may leave you struggling to read the book effectively, so we recommend the hardcover for a promising read experience.

Conclusion

Valuation is a must-have for those hoping to learn about and keep a treasure trove of information about everything finance. While it may prove to some to be a difficult or boring reading, for many, it will serve as a great enhancer of your financial knowledge base. In particular, finance students hoping to reinforce their understanding of the topics they learn in class will find solace in owning this insightful text.

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Review: 'The Little Book of Valuation'
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Understanding Corporate Finance: Definition and Key Concepts