Security Analysis and Business Valuation on Wall Street + Companion Web Site: A Comprehensive Guide to Today's Valuation Methods (Wiley Finance)
Jeffrey C. Hooke | 2010-05-03 00:00:00 | Wiley | 408 | Finance
An insider's look at security analysis and business valuation, as practiced by Wall Street, Corporate America, and international businesses
Two major market crashes, numerous financial and accounting scandals, growth in private equity and hedge funds, Sarbanes Oxley and related regulations, and international developments changed security analysis and business valuation substantially over the last fourteen years. These events necessitated a second edition of this modern classic, praised earlier by Barron's as a "welcome successor to Graham and Dodd" and used in the global CFA exam.
This authoritative book shows the rational, rigorous analysis is still the most successful way to evaluate securities. It picks up where Graham and Dodd's bestselling Security Analysis - for decades considered the definitive word on the subject - leaves off. Providing a practical viewpoint, Security Analysis on Wall Street shows how the values of common stock are really determined in today's marketplace. Incorporating dozens of real-world examples, and spotlighting many special analysis cases - including cash flow stocks, unusual industries and distressed securities - this comprehensive resources delivers all the answers to your questions about security analysis and corporate valuation on Wall Street.
The Second Edition of Security Analysis on Wall Street examines how mutual funds, private equity funds, hedge funds, institutional money managers, investment banks, business appraisers, and corporate acquirers perform their craft of security analysis and business valuation in today's highly charged environment. Completely updated to reflect the latest methodologies, this reliable resource represents the most comprehensive book written by someone who has actually worked as an investment banker, private equity executive, and international institutional investor.
- Shows the methodical process that practitioners use to value common stocks and operating companies and to make buy/sell decisions
- Discusses the impact of the two stock market crashes, the accounting and financial scandals, and the new regulations on the evaluation process
- Covers how Internet and computing power automate portions of the research and analytical effort
- Includes new case study examples representative of valuation issues faced daily by mutual funds, private equity funds, hedge funds, institutional investors, investment banks, business appraisers, and corporate acquirers
- Is a perfect tool for professors wishing to show their MBA students the essential tools of equity and business valuation
Security analysis and business valuation are core financial disciplines for Wall Streeters, corporate acquirers, and international investors. The Second Edition of Security Analysis on Wall Street is an important book for anyone who needs a solid grounding in these critical finance topics.
Reviews
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!!
Reviews
As a long time practitioner of value investing, it is inspiring to see recent business school graduates and new investment analysts praise the first or second editions of the book and tell how valauble it was for them in understanding this complex area. This book is certainly a better resource that anything we had years ago at Harvard Business School.
Perhaps I am a good reviewing source from the investment community, as over the past five-year period 2005 to 2009, I ranked as the number #1 performing separate account value manager in the country, and this ranking includes all market cap categories (per the Morningstar rankings).
Both the first and second editions of the book sit on the top shelf in my office,and I probably have referred back to the first edition more than any other book that I have.
In my dealings with Mr. Hooke on investment matters over the years, he has proven himself to be one of the smartest people I know in the investment profession.
Douglas R. Cannon, CFA
President and Chief Investment Officer
Texas First Investment Management Company
Reviews
After working as a writer in the investment field for more than 10 years, I found myself using terms such as "discounted cash flow" without thorough understanding of what they really mean or how business valuation is done.
Now, after reading Security Analysis and Business Evaluation on Wall Street, I feel very well equipped to delve into the value of an investment and to better understand the analysis done by others.
The author clearly has thorough knowledge of a professional with many years of experience in investment banking, but he explains the concepts clearly so that any investor or business student can understand and use them.
Plenty of case histories explore specific companies and industries. It also includes a timely and cogent analysis of the 2008 crash--a fiasco largely caused by phony analysis of risk and value.
The book also includes access to a website with excellent working spreadsheets for Discounted Cash Flow and other valuation models. They alone are more than worth the price of the book. They could save an analyst or investor countless hours--plus they provide a great hands-on feel for the concepts so aptly illustrated in the book.
Reviews
Hooke's work is lucid and illuminating. The relative value techniques make complicated analysis simpler. Perfect stuff for an interested lay person though I can't swear that it is exhaustive for a professional.
Reviews
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).
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