• C++ Programming for Financial Engineering
    Highly recommended by thousands of MFE students. Covers essential C++ topics with applications to financial engineering. Learn more Join!
    Python for Finance with Intro to Data Science
    Gain practical understanding of Python to read, understand, and write professional Python code for your first day on the job. Learn more Join!
    An Intuition-Based Options Primer for FE
    Ideal for entry level positions interviews and graduate studies, specializing in options trading arbitrage and options valuation models. Learn more Join!

Looking for a book.

I'm looking for a book to serve as a primer on equity valuation. I was looking at one in a bookstore recently, and it was pretty interesting, but I'd like to read some more on the subject. I'm looking for a book which encompasses a wide range of models, like dividend-based, EPS analysis, etc. Any help would be appreciated, thanks.
Damodaran on Valuation - 2nd Edition, is a good book, although that's the only book I have read, so you should wait for some other suggestions and compare this book with the other books on this subject.

<iframe src="http://rcm.amazon.com/e/cm?t=quantfinaneng-20&o=1&p=8&l=as1&asins=0471751219&fc1=000000&IS2=1&lt1=_blank&lc1=0000FF&bc1=FFFFFF&bg1=F7F7F7&f=ifr" style="width:120px;height:240px;" scrolling="no" marginwidth="0" marginheight="0" frameborder="0"></iframe>
not a quant book, but good for valuation

Financial Statement Analysis and Security Valuation
Stephen Penman

This is not a quant book, but it is, IMO, the best for equity valuation, although it is not a primer or survey of all the methods out there.

You could supplement this with
The Analysis and Use of Financial Statements
Gerald White, Ashwinpaul Sondhi, and Dov Fried

For a general survey of methods, see Damodaran or the CFA book:
Equity Asset Valuation
John Stowe, Thomas Robinson, Jerald Pinto, Dennis McLeavey

<iframe src="http://rcm.amazon.com/e/cm?t=quantfinaneng-20&o=1&p=8&l=as1&asins=0471375942&fc1=000000&IS2=1&lt1=_blank&lc1=0000FF&bc1=FFFFFF&bg1=F7F7F7&f=ifr" style="width:120px;height:240px;" scrolling="no" marginwidth="0" marginheight="0" frameborder="0"></iframe><iframe src="http://rcm.amazon.com/e/cm?t=quantfinaneng-20&o=1&p=8&l=as1&asins=0470052821&fc1=000000&IS2=1&lt1=_blank&lc1=0000FF&bc1=FFFFFF&bg1=F7F7F7&f=ifr" style="width:120px;height:240px;" scrolling="no" marginwidth="0" marginheight="0" frameborder="0"></iframe>

Bastian Gross

German Mathquant
Not a book, but a paper

there is a paper about equity valuation in the attachment.
The Bayesian framework justifies the practice and should be useful.

I have managed some equity valuation during my internship.


  • Bayesian Framework (equity valuation).pdf
    196 KB · Views: 44