Equity Asset Valuation

Navigate equity investments and asset valuation with confidence

"Equity Asset Valuation helps bridge the gap between financial theory and practice, providing an objective view of the complementary and competing theories of, and approaches to, valuation. The authors explain and demonstrate the key absolute and relative valuation methods that are important to both the analyst valuing a company and the student of finance seeking to master valuation techniques. The book's many examples involving actual companies help the reader better appreciate nuances in the application of different valuation methods. This book is an excellent primer on the art of valuation." —Pamela Peterson Drake, PhD, CFA, Chandler/Universal Eminent Professor of Finance, James Madison University

"Valuation is a bridge between stories and numbers. Equity Asset Valuation provides the tools and basic techniques that you need to master to be able to build that bridge, and it does so without intimidating jargon, unnecessary theory, and unwanted distractions." —Aswath Damodaran, Professor of Finance, Stern School of Business, New York University

"In order to succeed as a security analyst it is critically important to have a thorough understanding of the basic fundamental underpinnings of valuation. Equity Asset Valuation provides this in a clear methodical fashion." —Paul D. Sonkin, Portfolio Manager, Gabelli Asset Management, and Adjunct Professor, Columbia Business School

Navigate equity investments and asset valuation with confidence Equity Asset Valuation, Fourth Edition blends theory and practice to paint an accurate, informative picture of the equity asset world. The most comprehensive resource on the market, this text supplements your studies for the third step in the three-level CFA certification program by integrating both accounting and finance concepts to explore a collection of valuation models and challenge you to determine which models are most appropriate for certain companies and circumstances. Detailed learning outcome statements help you navigate your way through the content, which covers a wide range of topics, including how an analyst approaches the equity valuation process, the basic DDM, the derivation of the required rate of return within the context of Markowitz and Sharpe's modern portfolio theory, and more.