Principles of Corporate Finance — Brealey Myers Review
Quick Answer: Principles of Corporate Finance by Brealey, Myers, Allen and Edmans is the gold standard corporate finance textbook — comprehensive, rigorous, and used at virtually every leading UK business school including London Business School, Oxford, Cambridge, Imperial, and Warwick. The 14th ISE edition is the current version.
Yes — Principles of Corporate Finance is the definitive corporate finance textbook. Essential reading for finance, accounting, and MBA students at UK universities. Buy the 14th ISE edition (ISBN 9781265074159) new, or save significantly with a used 13th edition which covers the same core content.
📋 In This Review
What Is Brealey Myers?
Principles of Corporate Finance by Richard Brealey, Stewart Myers, Franklin Allen and Alex Edmans is widely regarded as the most authoritative corporate finance textbook in the world. Now in its 14th edition (2022), it has shaped corporate finance education for over four decades. The book’s philosophy: teach the underlying theory so students can analyse any financial problem — including those not yet encountered.
| Authors: | Brealey, Myers, Allen, Edmans |
| Current Edition: | 14th ISE (2022) — also 2025 release available |
| Publisher: | McGraw-Hill Education |
| ISBN (14th ISE): | 9781265074159 |
| Used at: | LBS, Oxford Saïd, Cambridge Judge, Imperial, Warwick, LSE, UCL, Edinburgh |
| Best for: | Finance, accounting, MBA, investment banking |
Prices updated: 2026-08-11
What’s Inside the 14th Edition
Value and Capital Budgeting: The foundations of value — present value, NPV, and the risk/return trade-off. Thorough coverage of DCF, real options, and scenario analysis.
Risk and Return: Portfolio theory, the CAPM, and asset pricing with mathematical rigour. Empirical evidence integrated throughout.
Capital Structure and Financing: Modigliani-Miller, trade-off theory, pecking order theory, and practical capital structure decisions in depth.
Options and Derivatives: Black-Scholes and real options — more comprehensive than most competing texts.
NEW — ESG and Stakeholder Finance (14th edition): New chapter on corporate governance, ESG, and responsible business brought by Alex Edmans’s addition to the author team.
“Brealey Myers is the corporate finance bible. Work through it and you genuinely understand corporate finance rather than just knowing the formulas.”
— Charlotte, MSc Finance, London Business School
Who Should Buy Brealey Myers
Finance and accounting undergraduates at Russell Group universities — check your reading list first.
MBA students — the standard text on MBA programmes at LBS, Oxford Saïd, Cambridge Judge, Imperial, and Warwick.
Less suitable for: First-year undergraduates new to corporate finance — Hillier is a more accessible starting point.
Which Edition to Buy
14th ISE (2022) — current standard. Adds ESG chapter. ISBN 9781265074159.
2025 release ISE — just published (ISBN 9781265087586). Only if your programme requires it.
13th ISE (2019) — used copies £20–35 on AbeBooks vs £60–70 new for 14th. Same core content — excellent value for most undergraduate courses.
Brealey Myers vs Berk DeMarzo vs Hillier
| Feature | Brealey Myers | Berk DeMarzo | Hillier |
|---|---|---|---|
| Level | Advanced undergrad / MBA | Undergrad / MBA | Undergrad / European |
| Approach | Theory-first, first principles | Law of One Price framework | Applied, European context |
| UK universities | LBS, Oxford, Cambridge, Imperial | Warwick, Manchester, LSE | Strathclyde, Nottingham, Leeds |
See our full comparison: Brealey Myers vs Berk DeMarzo — Which Corporate Finance Textbook?
Where to Buy Cheapest
💰 Money-Saving Tip
A used 13th edition costs £20–35 on AbeBooks versus £60–70 new for the 14th. Core content is identical. Check your reading list before paying the premium.
Prices updated: 2026-08-11
Is Brealey Myers the best corporate finance textbook?
Brealey Myers Principles of Corporate Finance is widely regarded as the most authoritative corporate finance textbook and is the standard at leading UK business schools including LBS, Oxford Saïd, Cambridge Judge, and Imperial. For rigour and depth it is unmatched. Students wanting a more accessible introduction may prefer Hillier’s Corporate Finance.
Which edition of Brealey Myers should I buy?
The 14th ISE (ISBN 9781265074159, 2022) is the current standard. A 2025 release is also available. A used 13th ISE covers the same core content and costs £20-35 on AbeBooks versus £60-70 new. Check your reading list before buying.
Is Brealey Myers suitable for undergraduates?
Yes, but it is demanding. Most commonly used at advanced undergraduate level and on MBA programmes. First-year undergraduates new to corporate finance may find Hillier or Berk & DeMarzo more accessible as a starting point.
What is the difference between Brealey Myers Principles and Brealey Myers Fundamentals?
Principles of Corporate Finance is the full comprehensive text for MBA and advanced undergraduate programmes. Fundamentals of Corporate Finance (by Brealey, Myers and Marcus) is shorter and more introductory, used on first-year undergraduate courses.
Last Updated: Last Updated: July 2026 | Author: Textbooks.co.uk Editorial Team
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