There are many books on value investing. However, most books deal with the philosophy of value investing and the mindset needed to adopt this philosophy. Only a few books have covered the process of valuation from a quantitative perspective. Fewer still have been written from an Indian market perspective. Value investing requires investors to buy stocks at prices below their intrinsic value. But estimating the intrinsic value has always remained a challenge.

Quantitative approaches to estimating intrinsic value often begin and ends with discounted cash flow models, which can be applied meaningfully to only a handful of companies that generate stable free cash flows. Many companies lie outside this universe of mature free cash flow generators. This book outlines some quantitative approaches other than discounted free cash flow models that can be applied to estimate the fair market value of stocks. I have explained these approaches using case...