Business Analysis and Valuation Using Financial Statements, Text Only

by Palepu, Krishna G.; Healy, Paul M.; Bernard, Victor L

• ISBN13: 9780324020021
• ISBN10: 0324020023
• Format: Paperback
• Copyright: 1999-12-24
• Publisher: South-Western College Pub

Summary

Financial statements are essential documents, filed by every company doing business. They present management's view of the value and health of their company. But just how accurate are these reports? Is management's view trustworthy or biased, neutral or overly optimistic? Business Analysis and Valuation: Using Financial Statements 2e introduces a framework that helps readers fully analyze any company's financial statements and reveal its true condition and value. Book jacket.

Table of Contents

Part 1 Framework
A Framework for Business Analysis and Valuation Using Financial Statements	1	(1)
The Role of Financial Reporting in Capital Markets	2	(1)
From Business Activities to Financial Statements	3	(4)
From Financial Statements to Business Analysis	7	(3)
Summary	10	(1)
Discussion Questions	10
Part 2 Business Analysis and Valuation Tools
Strategy Analysis	1	(1)
Industry Analysis	1	(1)
Degree of Actual and Potential Competition	2	(3)
Relative Bargaining Power in Input and Output Markets	5	(2)
Applying Industry Analysis: The Personal Computer Industry	7	(2)
Competitive Strategy Analysis	9	(1)
Sources of Competitive Advantage	10	(1)
Achieving and Sustaining Competitive Advantage	11	(1)
Applying Competitive Strategy Analysis	12	(1)
Corporate Strategy Analysis	13	(4)
Summary	17	(1)
Discussion Questions	18
Overview of Accounting Analysis	1	(1)
The Institutional Framework for Financial Reporting	1	(6)
Doing Accounting Analysis	7	(6)
Accounting Analysis Pitfalls	13	(1)
Value of Accounting Data and Accounting Analysis	14	(1)
Summary	15	(1)
Discussion Questions	15
Asset Analysis	1	(1)
Historical Cost and Conservatism	1	(1)
Asset Reporting Challenges	2	(13)
Common Misconceptions about Asset Accounting	15	(2)
Summary	17	(1)
Discussion Questions	18
Liability and Equity Analysis	1	(1)
Liability Definition and Reporting Challenges	1	(12)
Common Misconceptions about Liability Accounting	13	(1)
Equity Definition and Reporting Challenges	13	(3)
Summary	16	(1)
Discussion Questions	16
Revenue Analysis	1	(1)
The Revenue Recognition Rule	1	(2)
Revenue Reporting Challenges	3	(11)
Summary	14	(1)
Discussion Questions	14
Expense Analysis	1	(1)
Matching and Conservatism	1	(1)
Expense Reporting Challenges	2	(14)
Summary	16	(1)
Discussion Questions	17
Entity Accounting Analysis	1	(1)
Entity Reporting Challenges	1	(12)
Summary	13	(1)
Discussion Questions	14
Financial Analysis	1	(1)
Ratio Analysis	1	(21)
Cash Flow Analysis	22	(6)
Summary	28	(1)
Discussion Questions	29
Prospective Analysis: Forecasting	1	(1)
Relation of Forecasting to Other Analyses	1	(1)
The Techniques of Forecasting	2	(5)
Elements of the Detailed Forecast	7	(5)
Sensitivity Analysis	12	(4)
Summary	16	(1)
Appendix: The Behavior of Components of ROE	17	(2)
Discussion Questions	19
Prospective Analysis: Valuation Theory and Concepts	1	(1)
Defining Value for Shareholders	2	(1)
The Discounted Abnormal Earnings Valuation Method	3	(4)
Valuation Using Price Multiples	7	(2)
Determinants of Value-to-Book and Value-Earnings Multiples	9	(3)
Shortcut Forms of Earnings-Based Valuation	12	(3)
The Discounted Cash Flow Model	15	(1)
Comparing Valuation Methods	16	(3)
Summary	19	(1)
Appendix: Reconciling the Discounted Dividends and Discounted Abnormal Earnings Models	20	(1)
Discussion Questions	21
Prospective Analysis; Valuation Implementation	1	(1)
Detailed Forecasts of Performance	1	(4)
Terminal Values	5	(8)
Computing a Discount Rate	13	(3)
Computing Estimated Values	16	(5)
Summary	21	(1)
Discussion Questions	21
Part 3 Business Analysis and Valuation Applications
Equity Security Analysis	1	(1)
Investor Objectives	2	(1)
Equity Security Analysis and Market Efficiency	3	(2)
Approaches to Fund Management and Securities Analysis	5	(2)
The Process of a Comprehensive Security Analysis	7	(4)
Financial Statement Data and Security Prices	11	(4)
Summary	15	(1)
Discussion Questions	16
Credit Analysis and Distress Prediction	1	(1)
The Market for Credit	2	(1)
The Credit Analysis Process	3	(8)
Financial Statement Analysis and Public Debt	11	(4)
Prediction of Distress and Turnaround	15	(1)
Summary	16	(1)
Discussion Questions	17
Mergers and Acquisitions	1	(1)
Motivation for Merger or Acquisition	1	(4)
Acquisition Pricing	5	(6)
Acquisition Financing	11	(5)
Acquisition Outcome	16	(2)
Summary	18	(1)
Discussion Questions	19
Corporate Financing Policies	1	(1)
Factors That Determine Firms' Debt Policies	1	(1)
The Optimal Long-Term Mix of Debt and Equity	2	(6)
The Financing of New Projects	8	(3)
Factors That Determine Firms' Dividend Policies	11	(4)
Summary	15	(1)
Discussion Questions	16
Management Communications	1	(1)
Communicating with Investors	1	(3)
Communication Through Financial Reporting	4	(4)
Other Forms of Communicating with Investors	8	(4)
Summary	12	(1)
Discussion Questions	12
Index	1	(15)
Author Index	16