The Theory of Investment Value
Originally written as a Ph.D. thesis at Harvard in 1937, this book is the most influential work on how to value financial assets. Renowned economist John Burr Williams incorporated creative theoretical concepts with instructive and humorous commentary based on his firsthand experiences in the clamorous world of investment. Williams discovered the “Dividend Discount Model” to forecast an estimate that provides intrinsic value. His discovery is still used today by professional investors on the institutional side of markets.
In The Theory of Investment Value, John Burr Williams articulated the theory of discounted cash flow based valuation, and in particular, dividend based valuation.
As per Peter Bernstein: "Williams combined original theoretical concepts with enlightening and entertaining commentary based on his own experiences in the rough-and-tumble world of investment."