Comments on: Damodaran on Valuation: Security Analysis for Investment and Corporate Finance http://www.rcfasia.org/damodaran-on-valuation-security-analysis-for-investment-and-corporate-finance Mon, 14 Jun 2010 03:46:25 +0000 hourly 1 http://wordpress.org/?v=3.0 By: Anonymous http://www.rcfasia.org/damodaran-on-valuation-security-analysis-for-investment-and-corporate-finance/comment-page-1#comment-314 Anonymous Mon, 14 Jun 2010 01:22:46 +0000 http://www.rcfasia.org/damodaran-on-valuation-security-analysis-for-investment-and-corporate-finance#comment-314 I will not receommend this book for an MBA Investment Finance elective level. It is just too basic in most areas, for that purpose. On the other hand, I have already recommended it to most people who wanted to develop their understanding of stock fundamentals entirely on their own. Since I am a teacher, I would like to see the author include more depth and examples specially in the areas of free cash flows based valuation. Secondly, I would like the area of debt leverage and its impact on stock's stand-alone risk, to be given a more extensive coverage. Rating: 2 / 5 I will not receommend this book for an MBA Investment Finance elective level. It is just too basic in most areas, for that purpose. On the other hand, I have already recommended it to most people who wanted to develop their understanding of stock fundamentals entirely on their own. Since I am a teacher, I would like to see the author include more depth and examples specially in the areas of free cash flows based valuation. Secondly, I would like the area of debt leverage and its impact on stock’s stand-alone risk, to be given a more extensive coverage.
Rating: 2 / 5

]]> By: Rick http://www.rcfasia.org/damodaran-on-valuation-security-analysis-for-investment-and-corporate-finance/comment-page-1#comment-313 Rick Sun, 13 Jun 2010 23:02:47 +0000 http://www.rcfasia.org/damodaran-on-valuation-security-analysis-for-investment-and-corporate-finance#comment-313 This is a great book. It has a lot of helpful valuation techniques and I find them really useful. I particularly like the part on relative valuation method and the way to solve the problem of evaluating P/E multiple of different countries. Very useful indeed. But there is a missing piece about P/S multiple. It is entirely based on DDM. What about company which is not expected to pay out dividend for the coming 20 years. This is a great book and the basic valuation methods are very well covered and explained. Rating: 4 / 5 This is a great book. It has a lot of helpful valuation techniques and I find them really useful. I particularly like the part on relative valuation method and the way to solve the problem of evaluating P/E multiple of different countries. Very useful indeed. But there is a missing piece about P/S multiple. It is entirely based on DDM. What about company which is not expected to pay out dividend for the coming 20 years. This is a great book and the basic valuation methods are very well covered and explained.
Rating: 4 / 5

]]> By: eweiss_egy@hotmail.com http://www.rcfasia.org/damodaran-on-valuation-security-analysis-for-investment-and-corporate-finance/comment-page-1#comment-312 eweiss_egy@hotmail.com Sun, 13 Jun 2010 21:34:59 +0000 http://www.rcfasia.org/damodaran-on-valuation-security-analysis-for-investment-and-corporate-finance#comment-312 I never dreamed of a book that will combine the theory and practice of business valuation to that extent. The examples in the book are all 90s' real examples for many of the multinational, and not only U.S., companies. WIth this extensive coverage of concepts and techniques, I don't feel I am in need for any other security analysis book. By the way, I have been looking for such a book for 6 years now. Rating: 5 / 5 I never dreamed of a book that will combine the theory and practice of business valuation to that extent. The examples in the book are all 90s’ real examples for many of the multinational, and not only U.S., companies. WIth this extensive coverage of concepts and techniques, I don’t feel I am in need for any other security analysis book. By the way, I have been looking for such a book for 6 years now.
Rating: 5 / 5

]]> By: Anonymous http://www.rcfasia.org/damodaran-on-valuation-security-analysis-for-investment-and-corporate-finance/comment-page-1#comment-311 Anonymous Sun, 13 Jun 2010 19:22:54 +0000 http://www.rcfasia.org/damodaran-on-valuation-security-analysis-for-investment-and-corporate-finance#comment-311 "Damodaran on Valuation" is a thorough book dealing with a wide array of issues in valuation. To assist the reader, well-explained examples are embedded after each section. Provides frameworks excellent for use in practical situations Rating: 4 / 5 “Damodaran on Valuation” is a thorough book dealing with a wide array of issues in valuation. To assist the reader, well-explained examples are embedded after each section. Provides frameworks excellent for use in practical situations
Rating: 4 / 5

]]> By: James Boyd http://www.rcfasia.org/damodaran-on-valuation-security-analysis-for-investment-and-corporate-finance/comment-page-1#comment-310 James Boyd Sun, 13 Jun 2010 17:40:58 +0000 http://www.rcfasia.org/damodaran-on-valuation-security-analysis-for-investment-and-corporate-finance#comment-310 This book provides a good introduction for those who want to learn valuation. Explained in simple English, the book describes many tools on how to do the valuation, particularly for stock valuation (DCF, P/E ratio, etc.).<p>I particularly like the explanation of various models of DCF. The author clearly explains the strengths and weaknesses of each models, possible problems and the solutions to the problems.<p>However, I found that this book lacks more in-depth analysis of the topics covered. Furthermore, I found that the CAPM model, to some extent, does not truly exist in the real corporate world. I have read many valuation reports from big names in investment banking, many of them do not adopt CAPM (for various reasons that make CAPM unapplicable, which are also inherent weaknesses of CAPM, they just put x% as the discount rate). Only few who still stick to CAPM. There should be a bridge between academic and real world applications. A more detailed discussion on CAPM by the author would resolve this issue. Rating: 4 / 5 This book provides a good introduction for those who want to learn valuation. Explained in simple English, the book describes many tools on how to do the valuation, particularly for stock valuation (DCF, P/E ratio, etc.).

I particularly like the explanation of various models of DCF. The author clearly explains the strengths and weaknesses of each models, possible problems and the solutions to the problems.

However, I found that this book lacks more in-depth analysis of the topics covered. Furthermore, I found that the CAPM model, to some extent, does not truly exist in the real corporate world. I have read many valuation reports from big names in investment banking, many of them do not adopt CAPM (for various reasons that make CAPM unapplicable, which are also inherent weaknesses of CAPM, they just put x% as the discount rate). Only few who still stick to CAPM. There should be a bridge between academic and real world applications. A more detailed discussion on CAPM by the author would resolve this issue.
Rating: 4 / 5

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