Valuation is at the heart of investing. A considerable part of the information for valuation is in the financial statements.Financial Statement Analysis and Security Valuation, 5 e by Stephen Penman shows students how to extract information from financial statements and use that data to value firms. The 5th edition shows how to handle the accounting in financial statements and use the financial statements as a lens to view a business and assess the value it generates.
Table of Contents
Table of Contents
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 Variation
5 Accrual Accounting and Valuation: Pricing Book Values
6 Accrual Accounting and Valuation: Pricing Earnings
7 Valuation and Active Investing
PART TWO: The Analysis of Financial Statements
8 Viewing the Business Through the Financial Statements
9 The Analysis if the Statement of Shareholders' Equity
10 The Analysis of the Balance Sheet and Income Statement
11 The Analysis of the Cash Flow Statement
12 The Analysis of Profitability
13 The Analysis of Growth and Sustainable Earnings
PART THREE: Forecasting and Valuation Analysis
14 The Value of Operations and the Evaluation of Enterprise Price-to-Book Ratios and Price-Earnings Ratios
15 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
17 Creating Accounting Value and Economics Value
18 Analysis of the Quality of Financial Statements
PART FIVE: The Analysis of Risk and Return
19 The Analysis of Equity Risk and Return for Active Investing
20 The Analysis of Credit Risk and Return
Appendix
A Summary of Formulas
Index
