Financial Statement Analysis and Security Valuation

This is the best book I have ever read on Value Investing. He starts with valuing a basic Bank Deposit and builds on that to valuing all securities using simple easily understood concepts - rather than complex financial engineering. Highly recommended.

I have made a mistake when I left my address, after 7 days I found this mistake.They reply on me as soon as I email them and send another copy immediately.Thnx so much.

I received the book within 3 days of ordering it. Other than a small crease on the front cover, the book looked brand new.

This book needs lots of diligent study, but if one has taken some accounting and/or finance courses it helps a lot. I use some concepts in this book (also in other text books by Lundholm and Sloan, CFA texts) to assess S&P 500 price vs. value. On October 29, 2013 S&P 500 is at 1769, book value (BV) is 667 and let's assume a 9% return. one year forward earnings is $120 for S&P (all this can obtained by various websites such as Barrons, S&P, Yardeni etc). Using the RE (Residual earnings model), implied growth rate is 3.56%, expected return is 9.276%. S&P 500 maybe trading slightly ahead of itself. Contrast 2013 expected return to that of 2007 when the implied growth rate was 6.46% (GDP 4%), S&P 500 is not over-valued. In 2011 implied growth was around 1.52% (S&P at 1136, BV of 593).Bottom line: 2007 S&P 500 index at 1527 was overvalued (implied growth rate of 6.46%) 2011 S&P 500 index at 1136 was undervalued (implied growth rate of 1.52%, less than GDP) 2013 S&P 500 index at 1769 appears to be fairly / or slightly over-valued (implied growth rate of 3.56%, about the same as GDP or slightly overvalued if we take GDP as 3%))I believe concepts in this text can be used to assess if a security (HPQ, GOOG, GE and lot more) is over-valued or undervalued using basic EPS, DPS, BV and other readily available numbers from yahoo finance. Overall, I would say, this is an excellent addition to valuation and financial statement analysts. I bought a used book, fourth edition (including S&H) only for $9 or less.

We had this book as the recommended text book in Strathclyde University (Glasgow) and initially I got a bit knocked out by Penman's approach because finance starts with CASH FLOWS and the writer does not approve the DCF Method. But once I settled into the book, trust me, its a BIBLE for FSA. Because the approach links Economic activity and Eco profit to valuation thus allowing greater clarity in understanding where VALUE actually comes from - something not so explicit when using DCF. And the best part of the book is the the 2-step to obtain FCF against the lengthy approach in Mckinsey Valuations and other text books. A good knowledge of excel can really help you get the best out of the book since using VLOOKUP and SUMIF you can create the templates just as described in the text book.The book does not use complicated language - basic concepts are from standard finance text books - Brealey & Myers, Ross Westerfield Jaffe, but the beauty lies in the way Penman integrates them into a holistic approach that can be used across various GAAPs and business functions.

On Wall Street, this book is a staple. A basic reference that explains financial statement analysis like no other. A must read introduction. The only downside is some of the terms the author uses are a little different than terms used in the Bloomberg or FactSet system, so it takes a little understanding to get that one straight. It will be a long time before someone publishes a better text.

I only buy paperback editions of my books for school because they are so much cheaper. There are plenty of examples and it is pretty much an easy read. Im pretty sure this is the same as the hardback copy.

I just received my book today, I bought from the used book section , what I didn't realize is, instead of buying the used book of the 4th edition, They sold me the 2nd edition of this book, which is quite outdated.When choosing a reliable seller, be careful to check which edition of the used book you are buying.

It is 2010 edition. A beautiful book packed with knowledge and plenty of exercises for practice.The book is must read for anyone interested in value investing.

Financial book with lots of detail, originally purchased it to help through a university module but been using it after as well, very interesting.

Fantastic book on financial statement analysis. One may find repetition of concepts, statements etc.. Leave those aside and one will learn a lot. Equally good for MBA students and practicing professionals.

it met my expectation, the usage was superb i would love to recommend it to my friends and other people that needed it

Really a great book who wants to be equity analyst, credit analyst, etc. Contains quantitative analysis of companies