Security Analysis on Wall Street: A Comprehensive Guide to Today's Valuation Methods, Univ. Edition (Wiley Nonprofit Law, Finance, and Management Series) [Paperback]

Jeffrey C. Hooke (Author)

Book Description

ISBN-10: 0471362476 | ISBN-13: 978-0471362470 | Publication Date: September 3, 1999

Security Analysis on Wall Street The principles of investing have always been simple: buy low, sell high. The information needed to make these potentially lucrative decisions, however, is often hard to find, difficult to decipher, and not always reliable. This authoritative new book is the essential reference for students who want to learn the rational, rigorous analysis that is still the most successful way to evaluate securities. Security Analysis on Wall Street explains how the values of common stocks are really determined in today's marketplace and takes a comprehensive look at the entire security evaluation process, as well as the major valuation techniques currently being used by Wall Street professionals. Beginning with an overview of the environment in which stocks are issued, researched, bought, and sold, Hooke examines the roles of the various players, the rules of the markets, and the activities surrounding initial public offerings. He then probes the intricacies of analyzing and reporting on securities with proven methods for evaluating the merits of a stock. This sophisticated yet straightforward system teaches students how to assess profitable firms; understand marginal performers, leveraged buyouts, and corporate takeovers; and-most importantly-to break down different analyses and get the big answers: Is the security fairly valued, and why or why not? "A welcome successor to Graham and Dodd's Security Analysis." -Barron's

Editorial Reviews

Review

Praise for the First Edition

"A cross between a textbook for analysts-in-training and a tell-all expose of the analyst profession."
—Business Week

"Hooke has written a step-by-step explanation of how to analyze stock. He takes the reader from the basic yardsticks used to judge companies -- intrinsic value, relative value and acquisition value - and goes all the way to analyzing stocks in emerging overseas markets."
—ABC News.com

Advance Praise for the Second Edition

"A welcome successor to Graham and Dodd's Security Analysis."
—Barron's Advance Praise for the Second Edition

"Jeff Hooke has written an excellent overview of the process of valuing individual equities and entire companies. It is useful for a variety of readers, ranging from active investors, to financial advisors, to principals of companies contemplating a sale or public offering. It has a tremendous amount of material between the covers of a single volume."
—William H. Heyman, Vice Chairman and Chief Investment Officer, The Travelers Companies, Inc.; and former director, Division of Market Regulation, U.S. Securities and Exchange Commission

"The Second Edition is released at a propitious time. As we recover from the worst financial crisis in recent memory, the need for thorough analysis is critical. Hooke's primer is readable and easily understood, even by those without CFA credentials. It should help practitioners avoid the mistakes of casual decision making."
—Dennis Flannery, retired executive vice president, Inter-American Development Bank

"This book is more than a textbook for anyone who wants to make a living as a valuation expert or securities analyst —it is a living, breathing, 'how to' guide on the latest methods, with plenty of real-life examples that hit home."
—Ron Everett, Managing Partner, Certified Business Appraiser, Business Valuation Center

"The financial crises of the pas... --This text refers to the Kindle Edition edition.

From the Publisher

A dynamic real-world antidote to the abstract approach to securities analysis found in other books on the subject. For more than 65 years, Graham and Dodd's Security Analysis has been the number-one guide on the subject. Offering an up-to-the-minute, real-world view of security analysis as it is currently practiced on Wall Street, this book picks up where Graham and Dodd leave off. A welcome departure from the rarefied approach taken at most business schools, Security Analysis teaches by example with dozens of recent securities issues. --This text refers to an out of print or unavailable edition of this title.

See all Editorial Reviews

Product Details

• Paperback: 512 pages
• Publisher: Wiley (September 3, 1999)
• Language: English
• ISBN-10: 0471362476
• ISBN-13: 978-0471362470
• Product Dimensions: 9.9 x 7 x 1.4 inches
• Shipping Weight: 2.4 pounds (View shipping rates and policies)
• Average Customer Review: 4.5 out of 5 stars  See all reviews (28 customer reviews)
• Amazon Best Sellers Rank: #296,463 in Books (See Top 100 in Books)

More About the Author

Discover books, learn about writers, read author blogs, and more.

Customer Reviews

Most Helpful Customer Reviews

10 of 10 people found the following review helpful:

5.0 out of 5 stars 2nd edition, May 23, 2010

By 

Dmitry Mikhaylov (Arlington, VA USA) - See all my reviews
(REAL NAME)   

This review is from: Security Analysis and Business Valuation on Wall Street + Companion Web Site: A Comprehensive Guide to Today's Valuation Methods (Wiley Finance) (Hardcover)

I just wanted to add several comments. Overall I am very familiar with the first edition of this book, because I had to use it as a major source of guidelines at my previous job. The book was a great source! I had some background in structured finance and investments analytics, but I had zero experience in equity valuation before. In some 40-60 hours I was able to learn a lot about firm valuation (especially useful material - dividend discount model, market comparables, and free cash flow models) so that I could start preparing my first equity valuation reports. The second edition is an extended version, which still has all the advantages of the first edition: straightforward approach to valuation, a lot of examples, as little cumbersome math as possible. It is definitely a must read for any private investor and novice financial analyst. By the way, some sections of this book (industry analysis) are still included in the CFA curriculum (level 2, Equity valuation).

10 of 11 people found the following review helpful:

5.0 out of 5 stars Terrific summary of how to value a stock!, October 11, 1998

By A Customer

This review is from: Security Analysis on Wall Street (Hardcover)

The book is a terrific summary of how to value a stock. It gives a step by step outline of the process for a variety of stock categories. For example,you can value a manufacturing company with one technique, while savings and loans stocks and hi tech stocks , for example, require other methods. The book explains how all these different industries are handled.

The first five chapters really gave me the insiders view of how Wall Street operates, and how it prices IPO's, for example. The author, Jeffrey Hooke, worked on Wall Street a lot, and he doesn't pull any punches. Many things that go on are only semi-honest and he isn't afraid to reveal the dark underbelly of the securities business. I really liked the way he showed how many firms exaggerate their sales and earnings per share. You nevre see this sort of thing in other books.

Just by following his advice on pricing stocks on a relative value basis saved me about $3,000 on a recent trade. I recommend this book.

5 of 5 people found the following review helpful:

4.0 out of 5 stars Very resourceful from a broad persperctive, April 16, 2004

By A Customer

This review is from: Security Analysis on Wall Street (Hardcover)

I would recommend this book to someone who wants a broad exposure of "Security Analysis on Wall Street." Mr. Hooke gives a great overview of the many facets of securities analysis. The drawback of this book is that it lacks specifics. For example, I was interested in getting a deeper analysis of valuation methodologies, however, what I found was a general overview of this section--the author then jumped right on to the next section. This example relates to all of the topic areas. Going deeper into topic areas so that more educated and experienced readers could get insight was not available for the most part. Nevertheless, I rate this book 4 stars because it does a great job of giving a strong overview of security analysis. I would recommend this book, especially for beginners and intermediate students and practitioners.