Financial Statement Analysis and Security Valuation

Höfundur: Stephen Penman (Útgáfa: 5)
Financial Statement Analysis and Security Valuation

Kaup valmöguleikar

Verðmat er kjarni fjárfestinga, og stór hluti þeirra upplýsinga sem verðmat byggir á er að finna í ársreikningum. Financial Statement Analysis and Security Valuation eftir Stephen Penman, í fimmtu útgáfu, sýnir nemendum hvernig draga má upplýsingar úr ársreikningum og nota þær til að meta virði fyrirtækja. Fimmta útgáfan sýnir hvernig fara á með reikningshaldið í ársreikningum og nota þá sem linsu til að skoða reksturinn og meta það virði sem hann skapar.

Nánar um bókina

Útgefandi
McGraw-Hill UK
ISBN
0077147928
Print ISBN
9780071326407
Format
Page Fidelity (PDF)
Útgáfa
5
Höfundar
Stephen Penman
Tungumál
English
Útgefið
Prent takmörkun á líftíma
100
Prent takmörkun
2
Afritunar takmörkun
2

Kaflar

  • Preface
  • List of Cases
  • List of Accounting Clinics
  • Chapter 1. Introduction to Investing and Valuation
  • Investment Styles and Fundamental Analysis
  • Bubble, Bubble, Toil, and Trouble
  • How Bubbles Work
  • Analysts During the Bubble
  • More Toil and Trouble
  • Fundamental Analysis Anchors Investors
  • The Setting: Investors, Firms, Securities, and Capital Markets
  • The Business of Analysis: The Professional Analyst
  • Investing in Firms: The Outside Analyst
  • Investing Within Firms: The Inside Analyst
  • The Analysis of Business
  • Strategy and Valuation
  • Mastering the Details
  • The Key Question: Sustainability of Competitive Advantage
  • Financial Statements: The Lens on the Business
  • Choosing a Valuation Technology
  • Guiding Principles
  • Anchoring Value on the Financial Statements
  • How to Use This Book
  • An Outline of the Book
  • The Web Connection
  • Key Concepts
  • A Continuing Case: Kimberly-Clark Corporation
  • Concept Questions
  • Exercises
  • Minicase
  • Chapter 2. Introduction to the Financial Statements
  • The Analyst's Checklist
  • The Form of the Financial Statements
  • Introducing Nike, Inc.
  • The Balance Sheet
  • The Income Statement
  • The Cash Flow Statement
  • The Statement of Shareholders' Equity
  • The Footnotes and Supplementary Information to Financial Statements
  • The Articulation of the Financial Statements: How the Statements Tell a Story
  • Measurement in the Financial Statements
  • The Price-to-Book Ratio
  • Measurement in the Balance Sheet
  • Measurement in the Income Statement
  • The Price-Earnings Ratio
  • Accounting as an Anchor: Don't Mix What You Know with Speculation
  • Tension in Accounting
  • Accounting Quality
  • Summary
  • The Web Connection
  • Key Concepts
  • The Analyst's Toolkit
  • A Continuing Case: Kimberly-Clark Corporation
  • Concept Questions
  • Exercises
  • Minicase
  • PART ONE. FINANCIAL STATEMENTS AND VALUATION
  • Chapter 3. How Financial Statements Are Used in Valuation
  • The Analyst's Checklist
  • Multiple Analysis
  • The Method of Comparables
  • Screening on Multiples
  • Asset-Based Valuation
  • Fundamental Analysis
  • The Process of Fundamental Analysis
  • Financial Statement Analysis, Pro Forma Analysis, and Fundamental Analysis
  • The Architecture of Fundamental Analysis: The Valuation Model
  • Terminal Investments and Going-Concern Investments
  • Valuation Models for Terminal Investments
  • Valuation Models for Going-Concern Investments
  • Criteria for a Practical Valuation Model
  • What Generates Value?
  • Valuation Models, the Required Return, and Asset Pricing Models
  • Summary
  • The Web Connection
  • Key Concepts
  • The Analyst's Toolkit
  • A Continuing Case: Kimberly-Clark Corporation
  • Concept Questions
  • Exercises
  • Minicases
  • Appendix The Required Return and Asset Pricing Models
  • Chapter 4. Cash Accounting, Accrual Accounting, and Discounted Cash Flow Valuation
  • The Analyst's Checklist
  • The Dividend Discount Model
  • The Discounted Cash Flow Model
  • Free Cash Flow and Value Added
  • The Statement of Cash Flows
  • The Cash Flow Statement under IFRS
  • Forecasting Free Cash Flows
  • Cash Flow, Earnings, and Accrual Accounting
  • Earnings and Cash Flows
  • Accruals, Investments, and the Balance Sheet
  • Summary
  • The Web Connection
  • Key Concepts
  • The Analyst's Toolkit
  • A Continuing Case: Kimberly-Clark Corporation
  • Concept Questions
  • Exercises
  • Minicase
  • Chapter 5. Accrual Accounting and Valuation: Pricing Book Values
  • The Analyst's Checklist
  • The Concept Behind the Price-to-Book Ratio
  • Beware of Paying Too Much for Earnings
  • Prototype Valuations
  • Valuing a Project
  • Valuing a Savings Account
  • The Normal Price-to-Book Ratio
  • A Model for Anchoring Value on Book Value
  • Residual Earnings Drivers and Value Creation
  • A Simple Demonstration and a Simple Valuation Model
  • Applying the Model to Equities
  • The Forecast Horizon and the Continuing Value Calculation
  • Beware of Paying Too Much for Growth
  • Converting Analysts' Forecasts to a Valuation
  • Build Your Own Valuation Engine
  • Applying the Model to Projects and Strategies
  • Features of the Residual Earnings Valuation
  • Book Value Captures Value and Residual Earnings Captures Value Added to Book Value
  • Protection from Paying Too Much for Earnings Generated by Investment
  • Protection from Paying Too Much for Earnings Created by the Accounting
  • Capturing Value Not on the Balance Sheet—for All Accounting Methods
  • Residual Earnings Are Not Affected by Dividends, Share Issues, or Share Repurchases
  • What the Residual Earnings Model Misses
  • The Web Connection
  • Summary
  • Key Concepts
  • The Analyst's Toolkit
  • A Continuing Case: Kimberly-Clark Corporation
  • Concept Questions
  • Exercises
  • Minicases
  • Chapter 6. Accrual Accounting and Valuation: Pricing Earnings
  • The Analyst's Checklist
  • The Concept Behind the Price-Earnings Ratio
  • Beware of Paying Too Much for Earnings Growth
  • From Price-to-Book Valuation to P/E Valuation
  • Prototype Valuation
  • The Normal Forward P/E Ratio
  • The Normal Trailing P/E Ratio
  • A Poor P/E Model
  • A Model for Anchoring Value on Earnings
  • Measuring Abnormal Earnings Growth
  • A Simple Demonstration and a Simple Valuation Model
  • Anchoring Valuation on Current Earnings
  • Applying the Model to Equities
  • Converting Analysts' Forecasts to a Valuation
  • Build Your Own Valuation Engine
  • Features of the Abnormal Earnings Growth Model
  • Buy Earnings
  • Abnormal Earnings Growth Valuation and Residual Earnings Valuation
  • Abnormal Earnings Growth Is Not Affected by Dividends, Share Issues, or Share Repurchases
  • Accounting Methods and Valuation
  • The Fed Model
  • PEG Ratios
  • Summary
  • The Web Connection
  • Key Concepts
  • The Analyst's Toolkit
  • A Continuing Case: Kimberly-Clark Corporation
  • Concept Questions
  • Exercises
  • Minicase
  • Chapter 7. Valuation and Active Investing
  • The Analyst's Checklist
  • How the Fundamental Investor Operates
  • Common Misconceptions About Valuation
  • Applying Fundamental Principles
  • Challenging Speculation in the Market Price
  • Reverse Engineering the S&P 500
  • Challenging the Price of a Stock
  • Reverse Engineering with the Abnormal Earnings Growth Model
  • Build Your Own Active Investing Tool
  • The Web Connection
  • Summary
  • Key Concepts
  • The Analyst's Toolkit
  • A Continuing Case: Kimberly-Clark Corporation
  • Concept Questions
  • Exercises
  • Minicases
  • PART TWO. THE ANALYSIS OF FINANCIAL STATEMENTS
  • Chapter 8. Viewing the Business Through the Financial Statements
  • The Analyst's Checklist
  • Business Activities: The Cash Flows
  • The Reformulated Cash Flow Statement
  • The Reformulated Balance Sheet
  • Business Activities: All Stocks and Flows
  • The Reformulated Income Statement
  • Accounting Relations That Govern Reformulated Statements
  • The Sources of Free Cash Flow and the Disposition of Free Cash Flow
  • The Drivers of Dividends
  • The Drivers of Net Operating Assets and Net Indebtedness
  • Tying It Together for Shareholders: What Generates Value?
  • Build Your Own Analysis Engine
  • Summary
  • The Web Connection
  • Key Concepts
  • The Analyst's Toolkit
  • A Continuing Case: Kimberly-Clark Corporation
  • Concept Questions
  • Exercises
  • Chapter 9. The Analysis of the Statement of Shareholders' Equity
  • The Analyst's Checklist
  • Reformulating the Statement of Owners' Equity
  • Running with Nike
  • Reformulation Procedures
  • Dirty-Surplus Accounting
  • Comprehensive Income Reporting Under U.S. GAAP and IFRS
  • Ratio Analysis
  • Payout and Retention Ratios
  • Shareholder Profitability
  • Growth Ratios
  • Hidden Dirty Surplus
  • Issue of Shares in Operations
  • Issue of Shares in Financing Activities
  • Handling Diluted Earnings per Share
  • Share Transactions in Inefficient Markets
  • The Eye of the Shareholder
  • Build Your Own Analysis Engine
  • Accounting Quality Watch
  • The Web Connection
  • Summary
  • Key Concepts
  • The Analyst's Toolkit
  • A Continuing Case: Kimberly-Clark Corporation
  • Concept Questions
  • Exercises
  • Minicase
  • Chapter 10. The Analysis of the Balance Sheet and Income Statement
  • The Analyst's Checklist
  • Reformulation of the Balance Sheet
  • Issues in Reformulating Balance Sheets
  • Strategic Balance Sheets
  • Reformulation of the Income Statement
  • Tax Allocation
  • Issues in Reformulating Income Statements
  • Value Added to Strategic Balance Sheets
  • Residual Income from Operations
  • Comparative Analysis of the Balance Sheet and Income Statement
  • Common-Size Analysis
  • Trend Analysis
  • Ratio Analysis
  • Build Your Own Analysis Engine
  • Summary
  • The Web Connection
  • Key Concepts
  • The Analyst's Toolkit
  • A Continuing Case: Kimberly-Clark Corporation
  • Concept Questions
  • Exercises
  • Minicases
  • Chapter 11. The Analysis of the Cash Flow Statement
  • The Analyst's Checklist
  • The Calculation of Free Cash Flow
  • GAAP Statement of Cash Flows and Reformulated Cash Flow Statements
  • Reclassifying Cash Transactions
  • Tying It Together
  • Cash Flow from Operations
  • Summary
  • The Web Connection
  • Key Concepts
  • The Analyst's Toolkit
  • A Continuing Case: Kimberly-Clark Corporation
  • Concept Questions
  • Exercises
  • Minicase
  • Chapter 12. The Analysis of Profitability
  • The Analyst's Checklist
  • The Analysis of Return on Common Equity
  • First-Level Breakdown: Distinguishing Financing and Operating Activities and the Effect of Leverage
  • Financial Leverage
  • Operating Liability Leverage
  • Summing Financial Leverage and Operating Liability Leverage Effects on Shareholder Profitability
  • Return on Net Operating Assets and Return on Assets
  • Financial Leverage and Debt-to-Equity Ratios
  • Second-Level Breakdown: Drivers of Operating Profitability
  • Third-Level Breakdown
  • Profit Margin Drivers
  • Turnover Drivers
  • Key Drivers
  • Borrowing Cost Drivers
  • Build You Own Analysis Engine
  • The Web Connection
  • Summary
  • Key Concepts
  • The Analyst's Toolkit
  • A Continuing Case: Kimberly-Clark Corporation
  • Concept Questions
  • Exercises
  • Minicase
  • Chapter 13. The Analysis of Growth and Sustainable Earnings
  • The Analyst's Checklist
  • What Is Growth?
  • Warnings About Growth
  • Cutting to the Core: Sustainable Earnings
  • Core Operating Income
  • Issues in Identifying Core Operating Income
  • Core Operating Profitability
  • Core Borrowing Cost
  • Analysis of Growth
  • Growth Through Profitability
  • Operating Leverage
  • Analysis of Changes in Financing
  • Analysis of Growth in Shareholders' Equity
  • Growth, Sustainable Earnings, and the Evaluation of P/B Ratios and P/E Ratios
  • How Price-to-Book Ratios and Trailing P/E Ratios Articulate
  • Trailing Price-Earnings Ratios and Transitory Earnings
  • P/E Ratios and the Analysis of Sustainable Earnings
  • Price-to-Book and Growth
  • Summary
  • The Web Connection
  • Key Concepts
  • The Analyst's Toolkit
  • A Continuing Case: Kimberly-Clark Corporation
  • Concept Questions
  • Exercises
  • Minicases
  • PART THREE. FORECASTING AND VALUATION ANALYSIS
  • Chapter 14. The Value of Operations and the Evaluation of Enterprise Price-to-Book Ratios and Price-
  • The Analyst's Checklist
  • A Modification to Residual Earnings Forecasting: Residual Operating Income
  • The Drivers of Residual Operating Income
  • A Modification to Abnormal Earnings Growth Forecasting: Abnormal Growth in Operating Income
  • Abnormal Growth in Operating Income and the “Dividend” from Operating Activities
  • Eye on the Future: Sustainable Income
  • The Cost of Capital and Valuation
  • The Cost of Capital for Operations
  • The Cost of Capital for Debt
  • Operating Risk, Financing Risk, and the Cost of Equity Capital
  • Financing Risk and Return and the Valuation of Equity
  • Leverage and Residual Earnings Valuation
  • Leverage and Abnormal Earnings Growth Valuation
  • Leverage Creates Earnings Growth
  • Debt and Taxes
  • Mark-to-Market Accounting: A Tool for Incorporating the Liability for Stock Options in Valuation
  • Enterprise Multiples
  • Enterprise Price-to-Book Ratios
  • Enterprise Price-Earnings Ratios
  • Summary
  • The Web Connection
  • Key Concepts
  • The Analyst's Toolkit
  • A Continuing Case: Kimberly-Clark Corporation
  • Concept Questions
  • Exercises
  • Minicase
  • Chapter 15. Anchoring on the Financial Statements: Simple Forecasting and Simple Valuation
  • The Analyst's Checklist
  • Simple Forecasts and Simple Valuations
  • Introducing PPE, Inc.
  • The No-Growth Forecast and Valuation
  • The Growth Forecast and Valuation
  • Simple Forecasting: Adding information to Financial Statement Information
  • Weighed-Average Forecasts of Growth
  • Simple Valuations with Short-Term and Long-Term Growth Rates
  • Growth in Sales as a Simple Forecast of Growth
  • Information in Analysts' Forecasts
  • Simple Valuation as an Analysis Tool
  • Sensitivity Analysis
  • Reverse Engineering to Challenge the Market Price
  • Summary
  • The Web Connection
  • Key Concepts
  • The Analyst's Toolkit
  • A Continuing Case: Kimberly-Clark Corporation
  • Concept Questions
  • Exercises
  • Minicases
  • Chapter 16. Full-Information Forecasting, Valuation, and Business Strategy Analysis
  • The Analyst's Checklist
  • Financial Statement Analysis: Focusing the Lens on the Business
  • 1. Focus on Residual Operating Income and Its Drivers
  • 2. Focus on Change
  • 3. Focus on Key Drivers
  • 4. Focus on Choices Versus Conditions
  • Full-Information Forecasting and Pro Forma Analysis
  • A Forecasting Template
  • Features of Accounting-Based Valuation
  • Value Generated in Share Transactions
  • Mergers and Acquisitions
  • Share Repurchases and Buyouts
  • Financial Statement Indicators and Red Flags
  • Business Strategy Analysis and Pro Forma Analysis
  • Unarticulated Strategy
  • Scenario Analysis
  • The Web Connection
  • Summary
  • Key Concepts
  • The Analyst's Toolkit
  • A Continuing Case: Kimberly-Clark Corporation
  • Concept Questions
  • Exercises
  • Minicases
  • PART FOUR. ACCOUNTING ANALYSIS AND VALUATION
  • Chapter 17. Creating Accounting Value and Economic Value
  • The Analyst's Checklist
  • Value Creation and the Creation of Residual Earnings
  • Accounting Methods, Price-to-Book Ratios, Price-Earnings Ratios, and the Valuation of Going Concerns
  • Accounting Methods with a Constant Level of Investment
  • Accounting Methods with a Changing Level of Investment
  • An Exception: LIFO Accounting
  • Hidden Reserves and the Creation of Earnings
  • Conservative and Liberal Accounting in Practice
  • LIFO Versus FIFO
  • Research and Development in the Pharmaceuticals Industry
  • Expensing Goodwill and Research and Development Expenditures
  • Liberal Accounting: Breweries and Hotels
  • Profitability in the 1990s
  • Economic-Value-Added Measures
  • Accounting Methods and the Forecast Horizon
  • The Quality of Cash Accounting and Discounted Cash Flow Analysis
  • Growth, Risk, and Valuation
  • Summary
  • The Web Connection
  • Key Concepts
  • The Analyst's Toolkit
  • Concept Questions
  • Exercises
  • Minicase
  • Chapter 18. Analysis of the Quality of Financial Statements
  • The Analyst's Checklist
  • What Is Accounting Quality?
  • Accounting Quality Watch
  • Five Questions About Accounting Quality
  • Cutting Through the Accounting: Detecting Income Shifting
  • Separating What We Know from Speculation
  • Prelude to a Quality Analysis
  • Quality Diagnostics
  • Diagnostics to Detect Manipulated Sales
  • Diagnostics to Detect Manipulation of Core Expenses
  • Diagnostics to Detect Manipulation of Unusual Items
  • Detecting Transaction Manipulation
  • Core Revenue Timing
  • Core Revenue Structuring
  • Core Expense Timing
  • Releasing Hidden Reserves
  • Other Core Income Timing
  • Unusual Income Timing
  • Organizational Manipulation: Off-Balance-Sheet Operations
  • Justifiable Manipulation?
  • Disclosure Quality
  • Quality Scoring
  • Abnormal Returns to Quality Analysis
  • Summary
  • The Web Connection
  • Key Concepts
  • The Analyst's Toolkit
  • Concept Questions
  • Exercises
  • Minicases
  • PART FIVE. THE ANALYSIS OF RISK AND RETURN
  • Chapter 19. The Analysis of Equity Risk and Return for Active Investing
  • The Analyst's Checklist
  • The Required Return and the Expected Return
  • The Nature of Risk
  • The Distribution of Returns
  • Diversification and Risk
  • Asset Pricing Models
  • Fundamental Risk
  • Risk to the Return on Common Equity
  • Growth Risk
  • Value-at-Risk Profiling
  • Adaptation Options and Growth Options
  • Strategy and Risk
  • Discounting for Risk
  • Price Risk
  • Market Inefficiency Risk
  • Liquidity Risk
  • Inferring Expected Returns for Active Investing
  • Growth-Return Profiles
  • Finessing the Required Return Problem
  • Evaluating Implied Expected Returns with Value-at-Risk Profiles
  • Investing Within Risk Classes
  • Beware of Paying for Risky Growth
  • Expected Returns in Uncertain Times
  • Summary
  • The Web Connection
  • Key Concepts
  • The Analyst's Toolkit
  • Concept Questions
  • Exercises
  • Minicase
  • Chapter 20. The Analysis of Credit Risk and Return
  • The Analyst's Checklist
  • The Suppliers of Credit
  • Financial Statement Analysis for Credit Evaluation
  • Reformulated Financial Statements
  • Short-Term Liquidity Ratios
  • Long-Term Solvency Ratios
  • Operating Ratios
  • Forecasting and Credit Analysis
  • Prelude to Forecasting: The Interpretive Background
  • Ratio Analysis and Credit-Scoring
  • Full-Information Forecasting
  • Required Return, Expected Return, and Active Debt Investing
  • Active Bond Investing
  • Liquidity Planning and Financial Strategy
  • The Web Connection
  • Summary
  • Key Concepts
  • The Analyst's Toolkit
  • Concept Questions
  • Exercises
  • Minicase
  • A Summary of Formulas
  • Index