Financial Statement Analysis and Security Valuation

4th Edition

By Stephen Penman

Publication Date: Mar 23, 2009

ISBN:0073379662 / 9780073379661

Language: English

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Imprint: McGraw-Hill/Irwin Publisher: McGraw-Hill Education Dimensions: 10.3 X 8.2 Inches (US)

Summary
Table of Contents

Main Description

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.

List of Cases

List of Accounting Clinics

1 Introduction to Investing and Valuation

2 Introduction to the Financial Statements

Financial Statement Analysis and Security Valuation

List of Cases

List of Accounting Clinics

1 Introduction to Investing and Valuation

2 Introduction to the Financial Statements

Part One Financial Statements and Valuation

3 How Financial Statements Are Used in Valuation

4 Cash Accounting, Accrual Accounting, and Discounted Cash Flow Valuation

5 Accrual Accounting and Valuation: Pricing Book Values

6 Accrual Accounting and Valuation: Pricing Earnings

Part Two The Analysis of Financial Statements

7 Viewing the Business Through the Financial Statements

8 The Analysis of the Statement of Shareholders’ Equity

9 The Analysis of the Balance Sheet and Income Statement

10 The Analysis of the Cash Flow Statement

11 The Analysis of Profitability

12 The Analysis of Growth and Sustainable Earnings

Part Three Forecasting and Valuation Analysis

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

14 Anchoring on the Financial Statements: Simple Forecasting and Simple Valuation

15 Full-Information Forecasting, Valuation, and Business Strategy Analysis

Part Four Accounting Analysis and Valuation

16 Creating Accounting Value and Economic Value

17 Analysis of the Quality of Financial Statements

Part Five The Analysis of Risk and Return

18 The Analysis of Equity Risk and Return

19 The Analysis of Credit Risk and Return

Appendix A Summary of Formulas

Index