From the Inside Flap
As part of the CFA Institute Investment Series, the Second Edition of Equity Asset Valuation has been designed for a wide range of individuals, from graduate-level students focused on finance to practicing investment professionals. This globally relevant guide outlines the essential methods used to evaluate modern equity investments—including those traded outside North America.
In this latest edition, the distinguished team of Jerald Pinto, Elaine Henry, Thomas Robinson, and John Stowe returns to provide you with the most up-to-date information associated with this important discipline. Blending theory with practice, they detail the contemporary techniques used to determine the intrinsic value of an equity security, and show you how to successfully apply these techniques in both foreign and domestic markets.
The Second Edition of Equity Asset Valuation clearly integrates finance and accounting concepts into the discussion—providing the evenness of subject matter treatment, consistency of notation, and continuity of topic coverage that is so critical to the learning process. Valuable for self-study and general reference, this revised guide contains clear, example-driven coverage of many of today's most important valuation issues, including:
Equity valuation—applications and processes
Return concepts essential for evaluating an investment
Discounted dividend valuation
Free cash flow valuation
Market-based valuation—including price and enterprise value multiples
Residual income valuation
Private company valuation
And to further enhance your understanding of the tools and techniques presented, Equity Asset Valuation Workbook, Second Edition—an essential study guide that contains challenging problems and solutions related to the concepts developed here—is also available.
With the authors bringing their own unique experiences and perspectives to the equity analysis process, this book distills the knowledge, skills, and abilities you need to succeed in today's dynamic financial environment. Filled with in-depth insights and practical advice, the Second Edition of Equity Asset Valuation does not simply examine a collection of valuation models for you to use, it challenges you to determine which models are most appropriate for specific companies and situations.
From the Back Cover
"The second edition of Equity Asset Valuation provides well written, accessible, comprehensive coverage of important concepts in the valuation of firms and the claims against their cash flows. The topical coverage and rigor are well suited for practitioners or university students who want to learn more about equity valuation concepts and applications or who want a reliable reference book in this area. I highly recommend it."–Robert Parrino, Lamar Savings Centennial Professor of Finance, McCombs School of Business, The University of Texas at Austin
"Superior equity research requires more than insightful business analysis—it requires effective company valuation. This book provides a thorough introduction to asset valuation, offering a survey of tools, practice and application."–Scott Stewart, PhD, CFA, former Fidelity Fund Manager and Faculty Director of Boston University's Investment Management Program
"Equity Asset Valuation, Second Edition clearly explains the critical concepts and approaches to valuing stocks in a single, easily digestible book. It is sure to be useful to both students approaching the subject with relatively little experience and to more experienced practitioners looking to refresh knowledge and stay up to date. As is now typical of CFA publications, Equity Asset Valuation, Second Edition sets out a body of practical 'how to' knowledge, while at the same time drawing on and absorbing, when appropriate, more recent academic research and views. This is a very useful book." –Steve Christie, PhD, Associate Professor, Applied Finance Centre, Macquarie University
"Equity Asset Valuation, Second Edition is comprehensive, highly readable, and replete with useful examples. It is a must read for stock market professionals and serious students of investment decision making."–Stephen E. Wilcox, PhD, CFA, Professor of Finance and Department Chair, Minnesota State University
