Financial Statement Analysis and Security Valuation

by Penman, Stephen

• ISBN13: 9780073379661
• ISBN10: 0073379662
• Edition: 4th
• Format: Hardcover
• Copyright: 2009-03-23
• Publisher: McGraw-Hill/Irwin

Summary

This book describes valuation as an exercise in financial statement analysis. Students learn to view a firm through its financial statements and to carry out the appropriate financial statement analysis to value the firm�s debt and equity. The book takes an activist approach to investing, showing how the analyst challenges the current market price of a share by analyzing the fundamentals. With a careful assessment of accounting quality, accounting comes to life as it is integrated with the modern theory of finance to develop practical analysis and valuation tools for active investing.

Table of Contents

List of Cases

List of Accounting Clinics

Introduction to Investing and Valuation

Introduction to the Financial Statements

Financial Statements and Valuation

How Financial Statements Are Used in Valuation

Cash Accounting, Accrual Accounting, and Discounted Cash Flow Valuation

Accrual Accounting and Valuation: Pricing Book Values

Accrual Accounting and Valuation: Pricing Earnings

The Analysis of Financial Statements

Viewing the Business Through the Financial Statements

The Analysis of the Statement of Shareholdersn++ Equity

The Analysis of the Balance Sheet and Income Statement

The Analysis of the Cash Flow Statement

The Analysis of Profitability

The Analysis of Growth and Sustainable Earnings

Forecasting and Valuation Analysis

The Value of Operations and the Evaluation of Enterprise Price-to-Book Ratios and Price-Earnings Ratios

Anchoring on the Financial Statements: Simple Forecasting and Simple Valuation

Full-Information Forecasting, Valuation, and Business Strategy Analysis

Accounting Analysis and Valuation

Creating Accounting Value and Economic Value

Analysis of the Quality of Financial Statements

The Analysis of Risk and Return

The Analysis of Equity Risk and Return

The Analysis of Credit Risk and Return

Summary of Formulas

Index

Table of Contents provided by Publisher. All Rights Reserved.