If you're not a numbers person, then finance can be intimidating and easy to ignore. But if you want to advance in your career, you'll need to make smart financial decisions and develop the confidence to clearly communicate those decisions to others. In How Finance Works, Mihir Desai-a professor at Harvard Business School and author of The Wisdom of Finance-guides you into the complex but endlessly fascinating world of finance, demystifying it in the process. Chapter 5 focuses on valuation, a critical step in all investment decisions. We'll explore how valuation is an art informed by science and outline what the art is and what the science is. How do you know how much a company is worth? What investments are worth making? And how can we avoid the most common pitfalls in valuation?