- Series: Professional Finance & Investment
- Hardcover: 400 pages
- Publisher: McGraw-Hill Education; 1 edition (July 7, 2010)
- Language: English
- ISBN-10: 0071639233
- ISBN-13: 978-0071639231
- Product Dimensions: 6.2 x 1.1 x 9.2 inches
- Shipping Weight: 1.6 pounds (View shipping rates and policies)
- Average Customer Review: 6 customer reviews
- Amazon Best Sellers Rank: #1,264,577 in Books (See Top 100 in Books)
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Equity Valuation for Analysts and Investors (Professional Finance & Investment) 1st Edition
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About the Author
Jim Kelleher, CFA, is director of research and senior analyst at Argus Research, a New York–based equity research firm. He has three times been recognized in the Wall Street Journal's "Best on the Street" awards and has contributed numerous articles to leading financial publications. In addition to his experience managing several of the firm's widely used model portfolios, he actively participates in high-velocity institutional trading platforms, has helped design and launch Argus-branded investment products, and participates in other aspects of the firm's growth. Kelleher lives in New York City.
Top customer reviews
If you can read Equity Valuation cover to cover you must have an appetite for this type of text. Though I have been able to finish Anna Karenina and Don Quixote, a similar approach has not been used here. I am not criticizing Kelleher for being dry, and rather emphasize that the value he offers is probably found in reference material for the sedulous. With qualifications in mind, why not a five star rating similar to what many others have awarded? Here are some examples drawing on the current marketplace:
1) Amidst record low interest rates many corporations are borrowing inexpensively and buying back stock. Apple has announced a record program; other companies retiring their shares include Oracle, Merck and Co., Bed Bathy and Beyond, Macy's, and this is really only a partial list. Equity Valuations summarizes the author's feelings on the subject "...Companies pour cash down the sinkhole with share repurchase (Pages 55-6)." It does not go beyond that--or mention metrics used by financial institutions other than Argus, such as Enterprise Value / Free Cash Flow.
2) There are also some stocks that have share prices that trade at astronomically high multiples to any earnings or cash flows. Examples include LinkedIn, Salesforce.com, and Tesla. Pertinently, Netflix may have the best performing stock in the S&P 500 this year, up 227%. This book does not provide adequate tools to value such companies. One metric would be Enterprise Value / Sales, which is not included in the text (at least it is not mentioned in the index).
3) There are subscription services that purvey the research of financial institutions (such as JPMorgan, Goldman Sachs, or Deutsche Bank...), and also web sites that offer EV / FCF or EV / Sales. Getting such information can be so expensive that litigation may be cheap by comparison. Frustratingly, Equity Valuation, in discussing a Dividend Discount Model, says "On Bloomberg.com, you can enter any ticker, the Equity key, and type 'DDM' and you are transported instantly to the dividend discount model for that stock (Page 230)." Efforts to do so last night have proven entirely unsuccessful; but perhaps the model is offered through a premium Bloomberg service?
In fairness, this work's copyright date is 2010, indicating that it is three years old. A new edition may focus on different topics as times and methods to address them change. It probably is helpful to anyone taking a close look at insurance companies, industrials, or consumer staples.
To summarize, the book is either more of an introductory text than its publisher describes or is incomplete. Other reviewers like it and I believe there are valid reasons. However, to me, it is insipid because it not particularly insightful for the stocks that have been grabbing headlines.