Corporate Finance: Theory and Practice

Aswath Damodaran’s Corporate Finance: Theory and Practice is both a rigorous textbook and a guide to real-world financial decision-making. Known as the “Dean of Valuation,” Damodaran distills complex ideas - such as the cost of capital, capital budgeting, and optimal leverage - into accessible lessons supported by empirical evidence and case studies. His writing bridges analytical depth with practical relevance, showing how theoretical models apply to actual corporate behavior. For intermediate-level readers, this book is transformative: it expands their understanding from narrow valuation to the broader financial ecosystem that drives business decisions. Its clarity, depth, and intellectual rigor make it an indispensable reference for anyone aspiring to master corporate finance at a professional level.

Aswath Damodaran is a professor of finance at New York University’s Stern School of Business, recognized globally for his expertise in valuation, corporate finance, and investment management.