The best books on valuing a stock
Start with Damodaran on Valuation by Aswath Damodaran. The standard reference for putting a number on a business, from cash flows to multiples.
The 6 books, in reading order
Tap a title to jump to it below.
| # | Book | Author |
|---|---|---|
| 1 | Damodaran on Valuation | Aswath Damodaran |
| 2 | The Little Book of Valuation | Aswath Damodaran |
| 3 | The Five Rules for Successful Stock Investing | Pat Dorsey |
| 4 | The Little Book That Builds Wealth | Pat Dorsey |
| 5 | Financial Statement Analysis | Martin S. Fridson & Fernando Alvarez |
| 6 | Valuation: Measuring and Managing the Value of Companies | McKinsey & Company (Koller, Goedhart, Wessels) |
At some point every thesis comes down to a number: what is this business worth, and is the market offering it for less? This shelf teaches the discipline of putting that number on paper — from the plain-language entry points to the professional's DCF bible.
Damodaran is the reference: Damodaran on Valuation covers the full method, and The Little Book of Valuation is the shorter way in. Pat Dorsey's Five Rules and moat book teach you to read a company's quality from its financials, and the McKinsey Valuation text is the deep end. Together they teach you to check whether a price makes sense before you pay it.
Most of these have strong audiobook editions, and a free Audible trial covers many of them — a low-friction way to get through the shelf on a commute.
Start a free 30-day Audible trialNew Audible members only · cancel anytime · many titles included with membership.
More reading lists
This is one shelf of the full value investor's reading list. The others:
Common questions
What is the best book on how to value a stock?
Start with Damodaran on Valuation by Aswath Damodaran. The standard reference for putting a number on a business, from cash flows to multiples. Then read The Little Book of Valuation and The Five Rules for Successful Stock Investing.
Which books are on this list, and in what order?
6 books, in the order we'd read them — see the table at the top of this page. The full reading list has 5 more topics.
Does HoldLens earn money from these book links?
Yes. The book links go to Amazon, and as an Amazon Associate HoldLens earns from qualifying purchases at no extra cost to you. Books are chosen on merit, never paid placements.
Amazon affiliate links — as an Amazon Associate, HoldLens earns from qualifying purchases and membership trials at no extra cost to you. These are books we genuinely recommend, chosen on merit, never paid placements. Nothing here is investment advice — always do your own research.