Security Analysis and Business Valuation on Wall Street, + Companion Web Site: A Comprehensive Guide to Today's Valuation Methods

As a general valuation text, this book is, at best, of average quality. I would go with Damodaran's Investment Valuation or Koeller, et al.'s Valuation texts instead.Part One of this book on the Investing Environment is too long and had too much extraneous information.Part Two is pretty good. This is where I think most of the value in this book resides. The author gives you a good guide on how to perform an industry and company analysis, including things that have to be considered in order to determine the value of a company.Part Three is a discussion of various valuation methods, and this is where other books do a better job. For example, Damodaran or Koeller have a much better discussion of valuation methods. The one thing lacking here is that being a post-crisis valuation book, there is no discussion of issues with valuation during the crisis period. For example, blindly applying the CAPM when the risk-free rate was declining faster than increases in the risk premiums during certain periods during the crisis led to wacky results.Part Four is on "Special Cases," which was the most promising of all the topics but it turned out to be the biggest disappointment. I was (apparently) mistaken to think that this was going to be a more detailed discussion and implementation of the various special cases you can see from the TOC (PE, financial firms, insurance companies, etc.). However, this turns out to be just a high-level discussion of things most experienced valuation professionals know already (i.e., there are complications in valuing these other types of companies). The chapters in this section do not go into detail as to how to work around some of these complications. For example, the author discusses how to read what is purported to be an excerpt of the loss reserve table from the financial statements (this is also an incomplete, overly simplified depiction of the tables which are much more complicated in reality). However, the author doesn't go the next step to explain clearly as to how this information can be used in the valuation exercise.Part Five is also pretty weak. For example, the author spends time giving his opinion on the "causes" of 2008 crash, which I think would have been better spend discussing valuation issues during the crisis.

This book is a solid effort an balancing the basic techniques, using examples, and being interesting. I would recommend this book to any student of the market. I really enjoyed the breakdown of the four major techniques of evaluating a company's financials but I am a technical analysts so I do find the information questionable, in of it's self.

This is an extremely valuable book. It covers a broad field of knowledge, well organized and well written, delivering a personal tour of the industry by a veteran analyst/banker.I'm an accountant. I read this book to better understand how financial statements are actually used by analysts. I got more than that; this book provides seemingly comprehensive exposure to the financial industry, its development, regulation, and the methods used by actual practitioners across diverse situational themes--at a level of detail sufficient for a fundamental understanding. I read the first three sections, and all were well worth reading ( I had initially planned to skip the first few chapters but found them very enlightening and enjoyable ). Someone who wants a career as an analyst would obviously want to do a full depth financial curriculum, but this is a great introduction. I am now more confident that I can communicate with users of statements and have a mutual understanding.

This book is excellent. It it part of several MBA curriculums for a reason. The author very aptly explains all modern valuation framework and describes real life situations of how each would apply through case studies. Any serious investor, specially those with a value bent, should read this.

Despite what you hear about "efficient markets," the methodical work of security analysis and business valuation often takes a back seat to computerized research and trading these days. This book is pretty straight forward, and lays out the valuation process for practitioners, with lots of examples, anecdotes and insights that reflect today's reality, which includes, as we all know, Wall Street crashes, missed accounting shenanigans and herd mentality. The excel models that are on the site are helpful renditions of what Wall Street really uses, not some academic formula. You can tell this author really did time on Wall Street and private equity, and I thought many professionals who touch on finance and investment might find the book helpful, like lawyers, accountants, consultants and even government regulators. The book says "do your homework," and that applies to me and many others in the business!!

Very interesting for a book heavy on financial jargon

An earlier review had listed this book as a modern day version of Security Analysis. The book did not disappoint on that count. Methodical in balance sheet analysis and providing a framework for financial statement analysis, this book helps the reader wade through plethora of data to interpret information. The authors approach is matter of fact and data driven blending a right mix of theory and numbers. I plan to apply some of the concepts this FY.

The author was active in Wall Street, M&A, private equity and international finance, and it shows. The second edition goes over the entire waterfront of corporate valuation from a practical - not academic - viewpoint. The style is straightforward and shows healthy skepticism (it reviews the two crashes), and I just loved all the anecdotes and examples that made the subject, which is a little dry, come to life.

I was expecting something better to be honest. In particular, I was hoping to glean useful insights from the real world of valuation as practiced on "Wall Street". Material was actually quite generic. The case studies had no depth and provided little experience of the issues that an analyst would face. In terms of methodology example, the author mainly dwells on dividend discount models and ebitda multiples. This is quite curious as many analysts use free cash flows in the research reports and author provides little motivation for this omission.Overall, the book is too expense and doesn't really deliver in my view.

This book is mainly for sophisticated stock investors. They will find this book useful. It covers the way the opportunities are found, analyzed and decided upon in professional circles. It contains many nuggets that newly minted MBAs and intermediate level individual investors with 2-5 year experience will find useful. There are many takeaways that you can immediately apply to your investing. This book can take you one notch above where you stand today. If you are well read investor and looking for couple of new insights then this is the book for you.Recommended.

Full of knowledge from real investing expert. It's practical and tell different way of thinking and of acting at investing.

Отличная книга!Спасибо:)Очень рекомендую прочитать,достаточно простым языком объясняются азы.Awesome book.I give you my strong recommendation.Everything's explained in easy way.Good to start with

ウォールストリートの投資銀行やプライベートエクイテイの面々が、如何に企業価値評価やビジネスDDを通じて案件発掘、デイール提案等を行っているかが詳説されている。具体的なビジネスモデル分析の手法やレポート事例も披瀝されているので同業従事者には参考になる。また、DCFのスプレッドシートがWebからダウンロードできる点も評価に値する。