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.
Ch 1 Introduction to Investing and Valuation
Ch 2 Introduction to the Financial Statements
PART I: FINANCIAL STATEMENTS AND VALUATION
Ch 3 How Financial Statements Are Used in Valuation
Ch 4 Cash Accounting, Accrual Accounting, and Discounted Cash Flow Valuation
Ch 5 Accrual Accounting and Valuation: Pricing Book Values
Ch 6 Accrual Accounting and Valuation: Pricing Earnings
Ch 7 Valuation and Active Investing
PART II: THE ANALYSIS OF FINANCIAL STATEMENTS
Ch 8 Viewing the Business Through the Financial Statements
Ch 9 The Analysis of the Statement of Shareholders' Equity
Ch10 The Analysis of the Balance Sheet and Income Statement
Ch11 The Analysis of the Cash Flow Statement
Ch12 The Analysis of Profitability
Ch13 The Analysis of Growth and Sustainable Earnings
PART III: FORECASTING AND VALUATION ANALYSIS
Ch14 The Value of Operations and the Evaluation of Enterprise Price-to-Book Ratios and Price-Earnings Ratios
Ch15 Anchoring on the Financial Statements: Simple Forecasting and Simple Valuation
Ch16 Full-Information Forecasting, Valuation, and Business Strategy Analysis
PART IV: ACCOUNTING ANALYSIS AND VALUATION
Ch17 Creating Accounting Value and Economic Value
Ch18 Analysis of the Quality of Financial Statements
PART V: THE ANALYSIS OF RISK AND RETURN
Ch19 The Analysis of Equity Risk and Return
Ch20 The Analysis of Credit Risk and Return
作者：Stephen H. Penman
現職：Columbia University