If you do not know how to value a stock, how do you know if you are getting a good deal? You don't. Valuations are important and this book teaches readers how to estimate the intrinsic value of a company and its stock. I like how the author makes the point that investors must first like the company and that valuation is secondary. Valuations only help investors with determining if the stock is overvalued or undervalued.



Analysts also publish their opinions of intrinsic values. The author makes readers aware that valuation results depend on certain assumptions. Investors equipped with the skills of valuing companies will be able to make valuation determinations without relying on analysts who are biased and do not necessarily act in the best interest of individual investors. I highly recommend this book to investors.



- Mariusz Skonieczny, author of Why Are We So Clueless about the Stock Market? Learn how to invest your money, how to pick stocks, and how to make money in the stock market