Customer Reviews

Financial Dynamics: A System for Valuing Technology Companies

5 star:		(3)
4 star:		(0)
3 star:		(1)
2 star:		(0)
1 star:		(0)

 

 

Dr. Westland provides a well argued case for replacing existing corporate valuation methods with the Financial Dynamics system described in his book.

I've had this book for about two weeks, and am halfway through reading it. The text is a mix of storytelling and methodology which makes enjoyable reading. I have been using the software to compute tech stock prices. I am really amazed at how useful the software is. The valuations generated by the software are presented both as graphs of future cash flows with confidence limits that describe how risky they are (the author calls these value cones) and as present values. The software predictions are a big improvement over existing cash flow analysis. I've already made some modest profits applying them to online trades. I'd highly recommend this book to anyone interested in understanding technology stocks. The software alone is worth the price of the book.

A marvelous review of the problems of current financial valuation methods, and Westland's solution to their shortcomings.

I read this book halfway through. The subject is very interesting and makes totally sense. But since English is not my first language, the reading is quite tough.
The book provides a lot of background information regarding accounting, which our accounting professor didn't bother to talk about. For example how the guilds were organized in the dark ages in Europe (and still are organised in Germany of today).
You should have some background in process automation and cybernetics or accounting.