Customer Reviews

Analysis of Equity Investments: Valuation

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As an undergraduate Finance student prepping for the C.F.A. exam, I must say this is the best textbook I have seen on valuing equities. Clearly written by experienced C.F.A.'s, this guide to valuation has been more helpful and easier to use than any of the textbooks used in my finance classes.

It is well organized, making it easy to read as a single pass-through and to use as a reference for specific topics. The best thing about its writing style is the plentiful examples. Pages of practice problems and step-by-step demonstrations leave the reader with no misunderstanding of the material.

Some important topics covered include methods of valuation (discounted dividend, discounted cash flow, multiples, and the less popular residual income), methods of obtaining discount rates/required return, and other helpful information such as how analyst research reports are structured. Each topic is covered in great detail, encompassing just about every aspect an analyst should know and more. Do not expect to remember everything - I suggest building your own spreadsheet models using this book as a reference to help reinforce the information.

If you are a college student or studying for the C.F.A., this is a necessary book to have in your arsenal. If will provide clarity where other books do not suffice.

First, I am a physisict who is trying to learn how to value a company in order to make my on stock and mutual fund investments. So the math in this book was not difficult for me.

My background in finance is very limited so I have bought many books looking for an understanding of how to use financial statements from 10-Ks in order to put a value on a company's stock once I located one by screening, news letters, or some other method. I am trying to use Graham's and Klarman's "Margins of Safety" as my guide.
This book allows me to put a money value on a stock and see if the market is undervaluing it. Finally I found a book with sample problems--and their solutions! that will let me see if the finance principles I've learned are being used properly. I can highly recommend this book.
I am not using it for a CFA exam or text. I am looking for investing skills and AEI:V helps me toward that goal.

I paid extra for faster shipping but after not receiving it within the LARGE window given I sent a msg to the company but got no response. It finally came the day I sent an email to Amazon to get my money back.