Financial Statement Analysis and Security Pricing (2nd Edition)

Author: (USA) Stephen H. Penman
Publisher:
Publish Date: 2005-09-01
Features: This book explains how to "conduct financial statement analysis for the purpose of security valuation." The author directly and specifically combines financial statement analysis with security valuation, enabling readers to "dissect" various financial statement data layer by layer and "adjust" raw data step by step to transform it into data that helps in assessing corporate value. Ultimately, these data are used to evaluate the value of the enterprise. The book begins with the relevant concepts and structure of financial statements, integrating financial and accounting concepts. The author believes that financial statement analysis and security valuation are closely related, with the latter being a direct result of the former. Therefore, the book takes security valuation as its main thread and conducts financial statement analysis from the perspective of investors, effectively addressing the integration of financial statement analysis and security market analysis. The author's approach and methods for financial statement analysis are unique and systematic: dissecting and adjusting various financial statement data layer by layer to transform them into data that is highly helpful for assessing corporate value. It also provides a set of effective analytical techniques and tools to help you understand how businesses operate, how they generate value, and how value is (or is not) reflected in financial statements. Ultimately, these data are used to evaluate the value of the enterprise. After completing this book, you will be able to write persuasive, streamlined equity research reports. This textbook to some extent fills the gap in domestic financial markets courses regarding financial statement analysis textbooks.