Product Description
Traders and investors spend fortunes in time and money trying to gauge the real value of individual stocks. The Streetsmart Guide to Valuing a Stock introduces proven techniques for analyzing a stock’s value, spotting undervalued and overvalued stocks, and understanding the impact of interest rate changes and earnings reports on stock prices. New topics include:
- Finance theory in the stock valuation process
- Short-term stock price versus long-term value
- Use of valuation models to uncover misstatements and outright fraud
30 Apr
8:16 pm on April 30th, 2010
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.
Rating: 5 / 5
10:39 pm on April 30th, 2010
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!
Rating: 5 / 5
12:53 am on May 1st, 2010
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.
Rating: 4 / 5
3:38 am on May 1st, 2010
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.
Rating: 5 / 5
4:57 am on May 1st, 2010
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!!!
Rating: 5 / 5