Customer Reviews

Streetsmart Guide to Valuing a Stock

5 star:		(11)
4 star:		(3)
3 star:		(1)
2 star:		(0)
1 star:		(3)

 

 

The methodology doesn't cover some industries (financial, insurance etc) but for the majority of companies this will come up with an intrisic value (not book value) of the future earnings discounted over time for inflation, risk etc. I made a spreadsheet that does the methodolgy the book teaches, but the author has one for sale. I wish I had the spreadsheet before reading it, as I had to reread sections to gain a good understanding after I had the spreadsheet. It allows you to follow along his examples and "see" the numbers and forecasts effect the valution. I will email my version to any interested parties. No instructions, bare bones, but works. You wont understand it without the book.

Everything you need to know about how to value a stock is inside this book - somewhere. Finding it however, can be a problem, as it sometimes seems that the editors used the random dart theory of selection in putting together the chapters. For example, in order to understand the concepts presented in Chapter two, you need information that is contained in Chapters three and five. Once you figure out how to navigate it, though, this book is a valuable resource and a powerful educational tool for investors from neophyte to intermediate. It's encyclopedic in its scope, and the pages in the included glossary are sure to become dog-eared from use. We [...] recommend this book to investors of all levels. Beginners will learn critical concepts and terms, while more experienced investors will come to rely on this book as a trusted reference companion.

One of the best investment valuation books ever written. This book is clear enough for the novice, but contains enough depth to please corporate finance and valuation afficionados who are fans of Copeland, Rappaport, Stewart and Damodaran. The software on the authors' website, Valuepro, is every bit as good as the book and is a must for anyone interested in trying his hand at valuation. The authors also go out of their way to support their product with an excellent message board on the website. This is one of my favorite books.

As the head of the Investor Relations department for a NYSE listed firm, I found Dr. Gray's book to be an excellent way to estimate my firm's fair market value. The book lays out its valuation methodology in a concise, easy to follow format. Since I have begun using this free cash flow model to cross check other more traditional methods of valuing firms in my industry, I have developed a high level of confidence in this model. Free Cash Flow- Way to go!

This book is the best book on the stock market since a random walk down Wall Street. Its very basic, and has some good humor to it. The book is very detailed on many areas. It espically has helped me when I decided whether or not to investe in companies such as Oakley, Coca-Cola, Microsoft, and McDonald's. The Streetsmart Guide to Valuing a Stock helps me with just this. I now know if a stock is extremely over-rated or would be a good buy. I would like to esp. express my congrats to the 3 Penn State professors who wrote this book!!!

This is a great book that delivers on its promise to teach the reader how to value stocks. The valuation process is broken down into easy-to-understand parts, then brought back together to determine final results. Using the tools in this book and the software, I can intelligently and quickly review stock recommendations from my broker or make picks myself. This book will more than pay for itself.

This book is worth a look for any investor, large or small. The software available seperately cuts through the hype of today's inflated stock prices to find the real values out there.

i found that the authors convesational style drifted in and out of his description of his discounted cash flow formula, making the 'chain' or 'formula' difficult to follow. i had to go to the website to get an overview while reading the book to make heads or tails of the system. i think he only wrote the book to sell his software. a more direct, no nonsense, clearly written choice would be john malloy's 'what are stocks really worth'. this gives the investor a customized formula for his needs. it is EXCELLENT. buy this book and make your own spreadsheet- you'll be glad you did

The first half of this book did an admirable job of introducing the reader to various stock valuation terminology & methodology.

Unfortunately, the second half of the book focused almost solely on explaining, applying, and encouraging the purchase of their stock valuation software. Without this software, the second half of the book is somewhate limited in its value and use.

The book's not a total loss, thanks to the first half, but is probably a better exercise in "book valuation". This one's valuation falls somewhere short of its purchase price. If it were a stock and I were to apply the owners valuation principles, it might be best to pass on buying it...

Hope this helps! Cheers!

If you do not know how to value a stock, how do you know if you are getting a good deal? You don't. Valuations are important and this book teaches readers how to estimate the intrinsic value of a company and its stock. I like how the author makes the point that investors must first like the company and that valuation is secondary. Valuations only help investors with determining if the stock is overvalued or undervalued.

Analysts also publish their opinions of intrinsic values. The author makes readers aware that valuation results depend on certain assumptions. Investors equipped with the skills of valuing companies will be able to make valuation determinations without relying on analysts who are biased and do not necessarily act in the best interest of individual investors. I highly recommend this book to investors.

- Mariusz Skonieczny, author of Why Are We So Clueless about the Stock Market? Learn how to invest your money, how to pick stocks, and how to make money in the stock market