Financial Statement Analysis And Security Valuation Key Features • Problem-solving approach. Lot of cases • This book describes valuation as an exercise in financial statement analysis • The end-of-chapter material is comprehensive, with exercises and cases graded by degree of difficulty • The spreadsheet tools included in the book give students greater opportunity to apply the analysis to real data About The Author Stephen Penman The George O. May Professor and the Morgan Stanley Research Scholar in the Graduate School of Business, Columbia University. He also serves as co-director of Columbia's Center for Excellence in Accounting and Security Analysis. Prior to his appointment at Columbia in 1999, Stephen Penman was the L.H. Penny Professor in the Walter A. Haas School of Business at the University of California at Berkeley. From 1990-95 he served a Chairman of the Professional Accounting Program and Chairman of the Accounting Faculty at Berkeley. He also initiated and chaired Berkeley's Annual Conference on Financial Reporting. He has served as a Visiting Professor at Columbia University and the London Business School of Economic. Professor Penman received a first-class honors degree in Commerce from the University of Queensland, Australia, and M.B.A. and Ph.D. degrees from the University of Chicago Table Of Contents • Chapter 1: Introduction to Investing and Valuation • Chapter 2: Introduction to the Financial Statements PART I: FINANCIAL STATEMENTS AND VALUATION o Chapter 3: How Financial Statements Are Used in Valuation o Chapter 4: Cash Accounting, Accrual Accounting, and Discounted Cash Flow Valuation o Chapter 5: Accrual Accounting and Valuation: Pricing Book Values o Chapter 6: Accrual Accounting and Valuation: Pricing Earnings PART II: THE ANALYSIS OF FINANCIAL STATEMENT o Chapter 7: Business Activities and Financial Statements o Chapter 8: The Analysis of the Statement of Shareholders? Equity o Chapter 9: The Analysis of the Balance Sheet and Income Statement o Chapter 10: The Analysis of the Cash Flow Statement o Chapter 11: The Analysis of Profitability o Chapter 12: The Analysis of Growth and Sustainable Earnings PART III: FORECASTING AND VALUATION ANALYSIS o Chapter 13: The Value of Operations and the Evaluation of Enterprise Price-to- Book Ratios and Price-Earnings Ratios o Chapter 14: Simple Forecasting and Simple Valuation o Chapter 15: Full-Information Forecasting, Valuation, and Business Strategy Analysis PART IV: ACCOUNTING ANALYSIS AND VALUATION o Chapter 16: Creating Accounting Value and Economic Value o Chapter 17: Analysis of the Quality of Financial Statements PART V: THE ANALYSIS OF RISK o Chapter 18 The Analysis of Equity Risk and the Cost of Capital o Chapter 19 The Analysis of Credit Risk o Appendix A Summary of Formulas o Index