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EQUITY VALUATION & ANALYSIS

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We wrote this book because we saw a void between the abstract theoretical treatment of equity valuation and the practical problem of valuing an actual company using real-world data. We give serious treatment to the underlying theory of financial analysis and valuation, but our main goal is to be able to arrive at a pragmatic answer to the all-important question, "what is this company really worth?" To answer this question, we adopt a very different approach from other textbooks.

The key differences can be summarized as follows:

1. Our focus is on generating good financial statement forecasts.
2. We provide detailed practical guidance on how to obtain and analyze relevant real-world data.
3. We demystify the mechanics of equity valuation.

Our overriding theme is that good forecasts of the future financial statements are the key input to a good valuation. Most other aspects of the valuation process are mechanical and can be programmed into a computer. In fact, this text is sup- plied with eVal, an Excel-based computer program that takes care of these me- chanical tasks. As with many other textbooks, we discuss topics like business strategy analysis, accounting analysis, financial ratio analysis, and so forth. How- ever, we always do so with a clear view to how these analyses help us to generate better financial statement forecasts.

We also provide plenty of advice on where to go to obtain the most relevant raw data, eVal is supplied with historical financial statement data for over 8,000 com- panies and you can use eVal to access companies' SEC filings, investor relations' Web sites, analysts' forecasts, and news releases. Armed with such a rich source of data, we are able to provide you with plenty of practical examples and limitless opportunities for you to practice doing your own analyses.

A final goal of this book is to demystify the valuation process. In the past, we have seen students become lost in a sea of valuation formulas and inconsistent spreadsheet models. For example, students get confused as to whether they should use the DDM, DCF, or RIM valuation formula and whether they need to use the CAPM, APT, or MFM to compute their WACC. They become obsessed with learning acronyms and formulas but flounder when asked to provide a plausible valuation for an actual company. Using eVal, we demonstrate that these different formulas are easily reconciled and refocus students on developing the best set of financial forecasts to plug into these formulas. This reinforces our main point that the key to good valuations is good forecasts.

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Availability

10001413

657 LUN e 2nd

RLC MM (Rak Buku Umum)

Available

Detail Information

Series Title

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Statement of Responsibility

Russell Lundholm

Call Number

657 LUN e 2nd

Publisher

New York : McGraw-Hill., 2007

Collation

xvii, 342 p. : ill ; 23cm.

Language

English

ISBN/ISSN

978-007-126055-8

Classification

657

Content Type

-

Edition

2nd. ed.

Subject(s)

Buku Umum
Accounting
Management & Auxiliary Services

Specific Detail Info

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