Book Description

In the long-awaited The Business of Business Valuation, veteran business valuators Gary E. Jones and Dirk E. Van Dyke give you the key factors in building a successful business valuation practiceNthe fastest growing niche in the accounting, finance, and economic professions. Turn to this important new book first for detailed coverage of: Tools to help you get certified by the American Society of Appraisers, Institute of Business Appraisers, National Association of Certified Value Analysts, and more; the 3 major phases of every comprehensive business valuation, including research and data gathering, analysis, and estimation and reporting of value; proven procedures for working with clients beyond the valuation, improving the value of both their business and your own; how to most accurately calculate risk premium, growth rate to use in capitalization, and excess earnings premium; and 6 common pitfalls to watch forNany one of which can handicap and ultimately undermine the valuation process. From rules for effectively marketing your services, through the engagement, assessment, and actual production of a comprehensive, quality business valuation, let The Business of Business Valuation be your guidebook for mastering the entire business valuation process. ... Read more

Reviews (5)

Invaluable resource
As a financial practictioner,

I have applied many of the concepts from this wonderful work.One of the good things about the book is that it addresses not only the technical aspect of valuing business but also the art form as well.The book has assisted me in valuing companies in several industries and I consider it to be a one of the resources that is a staple of my practice.

Much thanks to the authors

From Bowman's Accounting Report November 1998.
"One of the challenges to providing business valuation services is educating inexperienced staff.Without adequate training, leveraging this profitable and growing service can be a problem.A new book by CPAs GaryJones and Dirk Van Dyke helps.

The Business of Business Valuation is aprimer for those just getting started in valuations.It covers the reasonsfor doing a valuation, the process and components, the valuation expert'srole, as well as marketing and pricing.Even experienced valuators canbenefit from the discussion of valuation consulting -- helping a businessowner increase value, through smart management and policy, to achieve,overall personal, family and employee goals.

The anatomy of a businessvaluation is particularly helpful, as are the three sample valuationreports.You'll also find discussions of trends, ethics and coursework forporspective valuators."

The Most Important Valuation Book You Will Buy
This is the single most-important valuation book you will buy. It teaches you how to build a successful business valuation practice.

Gary Jones is a marketing genius, and this book contains far more marketing tips than youwill find anywhere else.

I have a bookcase full of books aboutvaluations. I've read this book twice: cover-to-cover. And it's packed sofull of practical know-how that I keep discovering new, profitable ideaseach time I dip back into it.

You may already know how to do businessvaluations. But if you want to build a successful practice...buy and readthis book.

Great book for valuators and all business owners.
"The Business of Business Valuation is a powerful book and it's abouttime.It is written in a clear and easy to understand style.What'sexciting is the breadth of audience it addresses.This book is not justfor valuation professionals...it is clearly for all business owners,employees, educators and students.

While most books on valuation onlyaddress the mechanics and components of the process, Jones and Van Dykehave given us directions on the business itself. The non-practitioner willespecially benefit from this book by gaining insight into the process, howto select a professional and manage the relationship.

It is often said,`Information is power,' and this book is a must-have tool to obtaining anoptimum result whether you are a valuator, business appraiser or the mostimportant element -- the client.

This book is exactly what our industryneeds at this time to continue fueling the flame of growth.Bravo!! Jones,Van Dyke and McGraw-Hill for having the courage to write and publish thiscutting edge work."

A recipe for success?
"Gary Jones had provided a recipe for success for those considering addingbusiness valuations to their practices.There are many technical, `how-to'books and courses in the valuation field; Gary's approach, however, isunique, comprehensive and valuable to aspiring business valuationpractitioners." ... Read more

Book Description

The valuation of assets, both tangible and intangible, is an important element of corporate finance.Putting a price tag on ideas is almost impossible, and in the new economy, where companies grow dependent on intangible assets all the time, market volatility can be attributed in large part to our collective ignorance of their value. There are two basic approaches to valuation: from financial statements to cash flows, and from cash flows to financial statements. The former projects historical financial statements into the future and the latter attempts to construct cash flow statements and use them in forecasting future financial statements.Established companies use the first method and start-ups the second. In Principles of Cash Flow Valuation, the authors strive to "close the gap" between these two approaches by presenting the principles of cash flow valuation and cost of capital in a clear and systematic fashion.

* Provides the only exclusive treatment of cash flow valuation
* Authors use examples and a case study to illustrate ideas
* Presentation appropriate for a range of technical backgrounds: ideas are presented clearly, full exposition is also provided
* Named among the Top 10 financial engineering titles by Financial Engineering News ... Read more

Book Description

An in-depth look at the strategies, capital structure, and fund raising techniques for emerging growth and middle-market companies.

Here is a comprehensive and practical guide to understanding and applying the basics of corporate finance to emerging growth and middle-market companies. Using empirical data and actual company cases to illustrate capital structures and financing approaches, the book provides a detailed discussion of the many funding instruments, from traditional bank loans and asset-based financing to different types of private equity and other creative solutions; the types of funding sources and their expected rates of returns; and typical deal terms. ... Read more

Reviews (1)

Financing Database Included
The book comes with access to its online funding sources database...with search features based on your criteria.The database includes over 400 firms that provide a variety of debt and equity financing for emerging growth and middle-market companies.
... Read more

Book Description

Key Features:

* Discusses the impact of retirement, and how to successfully prepare for it
* Devotes an entire chapter to tax planning and sophisticated tax strategies
* Explores key concepts and strategies of investment planning, including asset allocation
* Covers risk management strategies of insurance planning, including life, disability, health, and long term care
* Explains principles of estate planning and examines advanced estate planning strategies
* Explores the key aspects associated with divorce and death
* Underscores time value of money and creative use of calculators in financial planning
* Presents universally acclaimed methods of practice management
* Discusses the impact of September 11 (2001) disaster on the investing public ... Read more

Amazon.com

Should a company's management be most accountable to employees,customers, or management itself? In Creating Shareholder Value,Alfred Rappaport argues that management's primary responsibility is to company shareholders. First published 12 years ago, the ideas put forth byRappaport have since become commonplace in companies around the world.

Rappaport eschews the most common measures of a company's performance,such as price-to-earnings ratios ("Cash is a fact, profit is anopinion"), return on investment, and equity measures, insteadconcentrating on developing a shareholder value approach that measures "valuedrivers" such as sales-growth rates, operating profit margins, andcost of capital. This revised and updated edition addresses the issuesof corporate downsizing and the social responsibilities of business. Italso includes new sections on the value of mergers and acquisitions andhow to implement a shareholder value system. Both managers andinvestors alike will find this book useful. ... Read more

Reviews (8)

Valuation Fundamentals
Given that investors value bonds by discounting future cash flows, it stands to reason that they value stocks in the same fashion. Alfred Rappaport is the founder of the shareholder value mindset which gained importance in the '80 and is widely accepted in this new millenium. Rappaport starts the book explaining that objections to using a discounted Cash Flow model do not hold. Strong arguments and empirical evidence is given to explain the market's valuation mechanism. What follows is a basic but thorough explanation of the 3 elements for valuing a company (cash flows , risk and the competitive advantage period). In the second part of the book, it will become clear for the reader DCF is closely linked to strategic analysis and is not in contradiction with stakeholder analysis, customer value analysis, Activity Based costing or any other tool. On the contrary, Rappaport shows DCF is a communication tool that helps investors understand a company's implied performance and how to (re)act. Together with the Valuation book from Copeland, Koller and Murrin this is the book you need.

The Classic -- From the "Father" of Shareholder Value
Professor Rappaport's revised and updated edition, provides a clear explanation of shareholder value concepts and application. One welcomed insight: he compares and contrasts the various shareholder methodologies (EVA and CFROI). As an indepent consultant specializing in shareholder value, I owe professor Rappaport and "Creating Shareholder Value" a debt of gratitude for introducing the critical link between corporate finance and competitive strategy. This is definately the "classic" work on shareholder value.

Good explanation of creating shareholder value, but...
Professor Rappaport's revised version of his 1986 book on creating shareholder value provides a good description of the value based management concept that he helped create. However, many of the chapters are stand alone sections that do not flow well together. In some chapters he does not provide enough depth on how this book can actually be used by managers. In addition, the chapters on using his concepts to formulate value-maximizing business strategies was somewhat lacking.

Nevertheless, the book was an easy read and many of his points were right on target. I would also highly recommend interested readers to check out "The Value Imperative" by Marakon Associates and "Valuation" by McKinsey & Co for more information on value based management.

MAKE MANAGING SHAREHOLDER VALUE A CORE COMPETENCY
This continues to be a good book for raising awareness that shareholder value can and should be managed. It was not that many years ago when a survey of CEOs found that they thought it was immoral and unethical to try to raise share price! I am also pleased to see that Mr. Rapparport discussed appluications to planning, M&A, compensation and organizational development. I belong to an organization (SHARE PRICE GROWTH 100) that develops new tools and processes to improve stock price, and we have found new ways directily link stock price, finance, investor realtions and capital management. We also found that each company has different investor sensitivities, and few stocks move directly with cash flow. The concepts that we use are described in THE 2,000 PERCENT SOLUTION. One of Mr. Rapparport's questions, "what is the most appropriate measure of performance" is a question that was asked of Peter Drucker in the 1970s. Dr. Drucker responded by saying that companies should use as many measures as possible, because we learn something different from each one. That is what really improves business. Confusion sets in, however, because people think that the measures used to improve business performance are also the ones investors focus on. That thinking has misled many to improve performance while watching the stock price and the multiple do nothing. Managing stock price should become a core competancy. With the right infomation, you will find your 2,000 percent solutions.

Great insights into aligning shareholder/stakeholder goals.
This book covers: investment and the meaning of shareholder value; unjustified conflict between gaining competitive advantage and creating shareholder value; short-comings of accounting; approaches to calculating shareholder value; business strategy; stock market signals to management; and executive performance. Rappaport stresses the unity of goals between shareholder and stakeholders. An excellent and insightful book. ... Read more

Book Description

For quick and authoritative answers to questions on business and financial formulas and tools, this unique book is unequaled! It not only clearly explains all major business and financial formulas, it shows you how to apply them, step by step. Perfect for college and graduate students in business, finance, marketing, operations, management, and accounting, this comprehensive, portable guide gives you quick access to all major financial and business formulas with explanations you can grasp and use in seconds. You get explanations, examples, and demonstrations of formulas for vertical analysis; net-cost method; sales mix analysis; regression statistics; profit margin; sampling formulas; discount cash flow analysis; weighted averages; cost of capital; earnings per share; inventory turnover; and nearly 200 more. This is the handiest tool available for mastering business formulas! ... Read more

Reviews (2)

Not just for students
This is a reprint of "McGraw-Hill Pocket Guide to Business Finance: 201 Decision-Making Tools for Managers" with a single difference. The now out-or-print book came with a runtime version of MathCAD and formulas for using each of the tools, while this new version does not. Also, don't let the title fool you - this book is as useful to working professionals as it is to students.

The 201 tools contained in this small, highly useful book range from Acid Test (doing a quick ratio of financials) to Z-Scores. Each tool is listed alphabetically, its use explained, and instructions on how to use it is provided. What I particularly liked is the worked examples that accompany each tool.

As an IT consultant who specializes in service delivery this book is not one I would normally include in my professional library. I was introduced to it when a colleague and I were writing a white paper on recovery management. We were searching for a way to link business imperatives to justification for investment in recovery strategies. We found one piece of the puzzle in this book - the Altman Z-Score. This tool predicts whether or not a company is likely to enter into bankruptcy within one or two years. This led to the development of a copyrighted model that addressed survival level objectives, and also became a key part of the Tarrani-Zarate Information Technologies Management Model. All this from a single entry in a small book!

Aside from discovering a relatively obscure, but important, tool I also found other useful tools in this book. Because I am not a business consultant or financial expert the tools were like a cram course in financial management for non-financial people. For example, I was able to apply some of the tools to personal financial matters - the real costs of a loan become quickly apparent when you compute them. I was also able to employ some of the tools to conduct realistic cost/benefit analyses, examine trade-offs supporting approaches to projects, etc. In this respect this small book has significantly improved my professional skills and has inspired me to read other books on financial management.

I strongly recommend this book - collection of tools really - to anyone who deals with finance, anyone who has P&L responsibilities, and business and IT consultants. The latter group will find this book to be invaluable for developing proposals, deliverables and project plans that add value.

GREAT!
This book saved me through four accounting courses three finance courses and two real estate courses. It is well organized and easy to locate any formula that is needed. ... Read more

Reviews (2)

Best technical book written yet, on this subject
Well written and very thorough in its treatment of how probability methods are used to quantify cost risk; excellent textbook for students (lots of exercises), as well as for professional cost analysts.

A Must Book for Engineers and Engineering Managers!
This is a must book for engineers, scientists, and engineering managers. Garvey's book presents how probability theory is applied to model, measure, and manage risk in the cost of a systems engineering project. The work is a first of its kind in the engineering, cost engineering/analysis, and operations research communities.

The book provides readers a clear discussion on the nature of uncertainty, how it affects the cost of a systems engineering project, and how probability methods are used to model, measure, and control risk from a systems engineering perspective. Readers benefit from the numerous mathematical and professional anecdotes, case discussions, results, observations, and interpretations found throughout the chapters.

The book contains 110 applied and theoretical exercises. It is an outstanding text for students in engineering and the related fields. ... Read more

Book Description

"No one has a clearer understanding of valuation than does Al King. He knows the nuts and bolts of this subject, as well as its intricacies, because he has practiced his profession on the factory floor, in the boardroom, and in the courtroom. The mathematics of valuation is easy to understand. Applying the underlying principles to the ever-growing myriad of business assets and issues is very difficult. Only a handful of valuation professionals have the breadth of knowledge and experience necessary to meet that challenge. The author of this book is one of them, and he conveys that experience in a readable style. He writes as he speaks- clearly and to the point. Anyone who wishes to understand the appraisal process as it pertains to business assets needs this book." --Gordon V. Smith, President, AUS Consultants
"Al King's Valuation: What Assets Are Really Worth aims to give the reader a deep understanding of what 'value' really means-and it succeeds brilliantly. King clearly explains why there is no single 'correct' value for many assets, using real-world examples to show that the intended purpose of a valuation must affect the result. Further, he offers examples of business problems (sometimes disasters!) caused by faulty understanding of value. Only someone with a truly deep understanding of the subject can explain it with such crystalline clarity." --Robert E. Esch, Retired Executive (General Management), Consultant, and President of Sarah Woods Traditions, Inc.
"What a wonderful, commonsense book for guys like me that covers the minefields of cost, price, and value. Every buyer or seller can gain many valuable insights from Al King's engaging book." --Thomas Swanston, Executive Vice President, Bassett Furniture Industries
"As usual, Al King has distilled a somewhat complicated area into commonsense business analysis that we can all relate to. His book is a very worthwhile read for professionals and business owners looking to better understand valuation in the broadest sense, as well as how it applies to their particular situation. I highly recommend taking the time to read this book." --Mark Santarsiero, President, Marshall & Stevens
"Al King has taken a complex topic and separated it into easily understandable components, which he highlights with meaningful examples. The result is a resource that attorneys, accountants, and business people in general can use frequently to explain to clients both the importance of 'valuation' and the concepts which define it." --Sari Ann Strasburg, Pepe & Hazard LLP
"Al King has put his long and vast experience in the field of valuation and accounting to use in Valuation: What Assets are Really Worth. He uses extensive examples to delineate differences between cost, price, and value. He then proposes that future debate should lead to disclosure and use of 'value' on a continuous basis. This book has been authored by a true expert in this field." --Frank C. Minter, CPA, Chair, Institute of Management Accountants ... Read more

Book Description

Praise for the First Edition

"The beauty of this work is that it points the reader to each professional organization’s writings on issues relating to business valuation methodologies and applications. I can’t think of an attorney who works with business valuation professionals who should not have this book."
–Robert E. Kleeman Jr.
CPA/ABV, ASA, CVA, CFE, Clifton Gunderson, LLC

"Business Valuation Body of Knowledge will quickly become one of the foremost authoritative sources on the ‘body of knowledge’ for business valuations. It is well organized and written in a style which allows it to be used as both a teaching tool and a reference manual."
–R. James Alerding
CPA/ABV, ASA, CVA, Clifton Gunderson, LLC

"When you simply need the answer, Shannon has it for you. The Body is a no-nonsense repository of information!"
–Stephen J. Bravo
CPA/ABV, CBA, CPF, PFS, Apogee Business Valuations, Inc.

"This book is a ‘must have’ for every business valuation library. . . . [Shannon has] done an excellent job of compiling a core body of knowledge that is common to all of the major accrediting organizations in the business valuation profession."
–Thomas E. Hilton
CPA, CVA, Anders, Minkler & Diehl, LLP

"The book is great. I especially like the cost of capital chapter. . . . It’s one of the few books where there is a succinct description of the different methods to determine the cost of capital. I thoroughly enjoyed reading it and it was a great refresher for me."
–Mary McCarter
ASA, CFA, Columbia Financial Advisors, Inc. ... Read more

Book Description

Praise for Managing a Corporate Bond Portfolio

"Crabbe and Fabozzi’s Managing a Corporate Bond Portfolio is a refreshingly good book on the neglected topic in fixed income portfolio management. If you want to understand the latest thinking in corporate bonds, what drives prices and why, read this book. You will emerge with knowledge that will help you get an edge in the competitive investing arena."
–Tim Opler
Director, Financial Strategy Group, CSFB

"A practitioner’s guide . . . a creative, comprehensive, and practical book that addresses the myriad of challenges facing managers of corporate bond portfolios. The chapter on liquidity, trading, and trading costs is a must read."
–Mary Rooney
Head of Credit Strategy, Merrill Lynch

"As a Senior Portfolio Manager responsible for managing billions of dollars invested in fixed income product during the mid-1990s, Lee Crabbe was the one Wall Street strategist that I would read every week to help me figure out where value was in the corporate bond market, and for insightful and easy-to-understand special reports that educated me and most investors on the risks and opportunities inherent in new structures and subordinated products.Fortunately for me and investors, Lee Crabbe and Frank Fabozzi have written this book, which compiles much of their previous work on corporate bond valuation, along with new features that are a must read, especially in light of the volatile times in the corporate bond market over the past few years. For portfolio managers, analysts, traders, and even strategists, if there is one book in your bookshelf that you should have on corporate bond portfolio management, it is this one."
–William H. Cunningham
Managing Director, Director of Credit Strategy, J.P. Morgan Securities Inc.

www.wileyfinance.com ... Read more

Reviews (4)

Fantastic
Leland Crabbe's knowledge of the corporate bond market is just awesome.

Great Overview
If you want a detailed overview of the corporate bond market and how to manage corporate bond portfolios - this is the book for you. I highly recommend this book, it's educational and well written.

great book
great for professionals in the fixed income field or those studying for the CFA.

A solid book
Finally a book written for practicing professionals. This is a book to have on your shelf. You'll be amazed at what these two can teach you. ... Read more

Book Description

• Learn practical, real-world examples and techniques for managing cash
• Optimize cash flows and liquidity management
• Discover the implications of recently enacted financial deregulation laws
• Conduct financial transactions in the global, e-commerce economy
• Develop a partnership approach to bank relationships

Full of valuable tips, techniques, illustrative real-world examples, exhibits, and best practices, this handy and concise paperback will help you stay up-to-date on the newest thinking, strategies, developments, and technologies in managing corporate cash.

"A valuable addition to the corporate cash management business. The authors have provided a succinct, user-friendly guide to the industry. In an increasingly complex and constantly evolving field, Essentials of Managing Corporate Cash provides a practical and actionable guide for managing or directing a treasury function."
–Whitman E. Knapp, President, Flmetrix LLC

"Essentials of Managing Corporate Cash should be required reading for anyone new to the field of treasury management or requiring a refresher in the fundamentals. The book is comprehensive and easy to read. The authors have done a great job compiling a lot of information in a concise and well-organized fashion. All treasury organizations, and those associated with treasury organizations, will benefit from keeping a copy of this book on hand."
–Pamela S. Dempsey, Treasurer, CNA Insurance

"This book provides an excellent tutorial for practicing Cash Managers, but perhaps more important, for Treasurers or Chief Financial Officers having management responsibility for the cash management function without hands-on experience in that function. It is an easy read, covering not only the basics of the various functions, but also providing a historical perspective on how they developed. I can see it as the handy reference guide in treasury departments."
–Jan Cloyde, Executive Vice President, City National Bank ... Read more

Reviews (1)

Great book if you need to know this stuff
I am a software developer of cash managment products so I know the stuff from the inside out, but I never had a business view of the area. This explains clearly, quickly, and readably the essentials of field. It explains the business use of all of the products I have built (ACH, Wires, Acct Trx, IR, etc.). Remarkably enough, it was really interesting and a very quick read--2 short evenings. Certainly, a great starter book. ... Read more

Book Description

Praise for PRACTICAL SPECULATION

"This is a wonderful book. Victor Niederhoffer and Laurel Kenner probably know more about short-term movements than anyone else. Their knowledge, based on sophisticated analysis of their unique database, underlies the findings in this book–an invaluable guide for speculators."
–James H. Lorie, Eli B. and Harriet B. Williams Professor Emeritus of Business Administration Graduate School of Business, University of Chicago

"A Rabelaisian romp down Wall Street. Always taking the unconventional course, this book is fearless and occasionally shocking, but always the conclusions are backed up by supporting numbers. It leaves no sacred cow unskewered. Bold analogies and clever insights spill from its pages. Recommended to those seeking both fun and profit."
–Richard Zeckhauser, Frank P. Ramsey Professor of Political Economy, Harvard University

"A fascinating read, one that will both entertain and educate."
–Edwin S. Marks, Chairman, Carl Marks & Co., Inc.

"Practical Speculation is so good that I’ll guarantee it. If it’s not for you just return it to me with your sales receipt for a full prompt refund."
–Martin Edelston, Publisher, Bottom Line Personal

"Pearls of investment wisdom from a Wall Street legend that should be treasured not only for their insights into the workings of the market, but also for their candor and humor . . . I’ve learned more from reading Niederhoffer’s works than I care to admit, and recommend this to anyone with serious financial aspirations."
–Andrew Lo, Harris & Harris Group Professor
MIT Sloan School of Management ... Read more

Reviews (77)

Best trading book of this century
This book gives treasure maps, minefield maps, and road maps for the market. The treasure maps tell you how to make money by analyzing the balance sheet, (beware of inventory and accounts receivable), by buying the growth companies in the first and fourth quarter, by following after interest rates, by buying the biotech with the insider buying, by bargaining for a good price, by waiting after a bad year, by waiting until real estate is down.

The minefield maps tell you how to avoid the blowups from earnings propaganda, the heads and shoulders and all that, the low book value stuff, the short term mentality, the boastful companies, the propagandist who's always gloomy, the road maps show how to use scatter diagrams, return data from all countries, the value line, the conservation of energy, tennis, baseball and chess to provide a foundation for investing. It's all documented with dozens of original tables, also very funny, and scholarly. I think i've read every other book about investing, and this one is head and shoulders way above them. I read a review in active trader magazine that said this is the best trading book of this century, and that's an understatement.

Exceptional Insight
Overflowing with observations and interconnections from disparate fields such as sports, finance, and physics, the reader will find this text highly refreshing, especially when compared to typically available trading literature. As the title suggests, Practical Speculation eloquently bridges the gap between financial theory and potential opportunities for the trader, delivering several testable trading/investment ideas and a statistically based methodology for ongoing research.

Undoubtedly this book will be derided by hordes of chartists, and other interests who the authors have challenged. However, readers should keep in mind that the observations, studies, and wisdom in this book are the result of decades as practitioners in the field. Unfortunately the vast majority of books about trading are written by those whose writing and ideas are too infrequently disciplined by real money risks (and rewards) in the markets (often emboldening charlatans to suggest making money is easy).

Practical Speculation is successful in helping the reader establish a systematic approach to testing, and more generally to apply a healthy does of skepticism to the pronouncements of market gurus (and other experts). Ever wary of their own fallibility, the authors encourage the readers not to take the strategies proffered in the book at face value and test for themselves. To this end the chapter on How to Avoid Spurious Correlations alone is worth the price of the book, especially for quantitative traders. There are only a handful of trading and investments books worth reading - this is one of the best.

what is wrong w/ the other reviewers?!?
if you have a rudimentary knowledge of speculation (i.e. you know how to translate pop culture into hypothesis of mkt bubbles), then this book has absolutely nothing to offer you. if you don't know how to, suffice it to say you shouldn't speculate, and if you still want to, then this book is definitely going to lead you to the same ruin that the author himself found.

vic knows how to build an audience / loyal cadre far better than he can write, which in turn is far better than he can manage a hedge fund. ---i make this statement on the premise that some 70-odd lunatics thought this book was insightful! ---outside of running some rudinemtary regression analyses that offers support to preconceived notions (i.e. selective interpretations as a result of selective data sets), the authors take it upon themselves, high in their ivory towers, to tear down such sacred cows as value investing, trend following, ben graham (and likewise buffett), and market timing. ---and the fact that the authors have no success to show for themselves is not lost on this reader (whereas buffet's success speaks for his philosophy).

as an aside, i find that any book, ANY, that finds it necessary to put in testimonials and stories about individuals is obviously lacking in content, insight, and data. this book is full of testimonials (both in support and contrast of the authors).

here's a great example of non-information that the authors package as profound: if a stock went up 3 weeks in a row, would you bet that next week it would go up or down? decide! --vic's answer is that its more likely to go up--did you bet wrong? probably. i did....but i don't know, i'd like to look at the stock, the news, developments, chaikin $ flow, inst ownership, overall mkt sentiment, etc etc before i decide, thank you very much! for the rest of you who would throw your $ into an investment / object of speculation without asking any questions, then vic is your guy.

i often go back and re-read select investing books (eg: alchemy of finance: 3x; reminisces of a stock operator: 3x; intelligent investor: 4x; etc). this book: 1x, and my strongest recommendation to avoid.

Experienced perspective - enjoyable & valuable.
I'm a young trader at a regional brokerage firm and eager to expand my knowledge and move forward, so I always keep an eye out for good books. In my opinion the best choices are books by experienced market participants that I can learn from.

I recently bought 'Practical Speculation' and also 'Fooled by Randomness' by Nassim Taleb. Both are by well known fund managers. But whereas the Taleb book had no practical money making suggestions, or even any information about the author's trading style or track record, 'Practical Speculation' is
full of distilled wisdom and useful information.

I wish all the trading books I bought were half as valuable as 'Practical Speculation'. I just ordered 'Education of a Speculator' also and can't wait to read it.

Iconoclastic and Informative
There are numerous tidbits within that are worth many times the price of the book. For example, the advice to place buy and sell orders behind the quoted bid-ask has sharpened my own trading and serves as a check on emotion as well. The overall optimistic tone was contrarian and timely and should help you to think positively when the market is beset with gloom.

I especially enjoyed the authors' debunking of market technicians and their baseless prognostications. Niederhoffer is at his best when subjecting unwarranted assertions to the cold rigor of statistical analysis. ... Read more

Book Description

Investment Valuation

Tools and Techniques for Determining the Value of Any Asset

Valuation is at the heart of every investment decision, whether that decision is to buy, sell, or hold. But the pricing of any financial asset has become a more complex task in modern financial markets. Now completely revised and fully updated to reflect changing market conditions, Investment Valuation, Second Edition, provides expert instruction on how to value virtually any type of asset–stocks, bonds, options, futures, real assets, and much more.

Noted valuation authority and acclaimed NYU finance professor Aswath Damodaran uses real-world examples and the most current valuation tools, as he guides you through the theory and application of valuation models and highlights their strengths and weaknesses.

Expanded coverage addresses:

• Valuation of unconventional assets, financial service firms, start-ups, private companies, dot-coms, and many other traditionally valued assets
• Risk in foreign countries and how best to deal with it
• Using real option theory and option pricing models in valuing business and equity
• The models used to value different types of assets and the elements of these models
• How to choose the right model for any given asset valuation scenario
• Online real-time valuations that are continually updated at www.damodaran.com

A perfect guide for those who need to know more about the tricky business of valuation, Investment Valuation, Second Edition, will be a valuable asset for anyone learning about this critical part of the investment process. ... Read more

Reviews (8)

Thank you
I have just purchased this book after reading customer reviews. I just want to thank for these people in my making decision to buy this book. Although not finished yet, it is excellent..

A very good modular and implementable guide
This is a very good book for those who are familiar with valuation but want to delve deeper. The great thing about this book is that it is modular i.e. one can jump between chapters without loss of continuity.

It has a very practical treatment of real options which is to say that it helps you think about certain valuation situations in an Options framework rather than getting bogged down with the mathematics of the situation. It has a lot of worked examples and of particular interest are valuation examples relating to off-beat assets like a NYC Taxi Medallion! A decent treatment of valuation of real estate, professional practices (lawyers, doctors) etc. is also provided.

For those who like to think about conceptual issues, there is a very good treatment of estimation of betas, international cost of capital and other similar matters.

The only thing preventing me from giving this book 5 stars is a not-too-detailed treatment of the Market Approach and particularly adjustment of market multiples to reflect subject company parameters. Otherwise, a great book and definitely a must-have.

One of the two valuation reference books
For investors subscribed to discounted cash flows valuation (DCF), there is no other books that offer the kind of in-depth anlaysis (both in step-by-step description and available scenarios using real companies) like this book does. Plus, Professor Damodaran maintains a free website where Excel-based valuation models and industry data are periodically updated. These features make the book invaluable. In short, if I am allowed to buy only one investment book, this is the one.

But since I can buy as many books as I want, it would be more important to tell what this book does not do. First, it's always important to get a second opinion. In this case, it would be something other than DCF. Currently, DCF and relative valuation (such as PE and PV) are the dominent valuation methods used in the U.S. And yes, they are both covered in-depth by this book, in addition to the Economic Value Addded method which is gaining momentum in recent years. But this book essentially dismisses the income statements in favor of cash flows statements for valuing securities, preferring DCF to relative valuation. This is certainly understandable in lights of recent manipulation of GAAP income by offenders like Enron, WorldCom and Tyco. But I believe it's important for investors to hear the voice for income statements valuation method. For that investors should get James English's Applied Equity Analysis - another must-have - as a second valuation reference book. Secondly, this book uses CAPM model for finding the discount rate. Again, it is true that CAPM is the most widely used model in the U.S., but I came to a conclusion, after reading close to a hundred critically acclaimed articles published in the last fifty years as part of my MBA requirements, that factor models provide better tracking of stock prices than CAPM does. Unfortunately, there is no good book available. For institutional investors, they can have models from BARRA and Wilshire, etc, but individual investors would have to construct their own, probably (like me) using the Fama-French three-factor model. Description of their model is available mostly from theirs and other published papers. Data are available from Kenneth French's own website at Dartmouth. Now since you read all the way through my review, here is your reward: go to Damodaran's website and download the manuscript of this book for free if you are really frugal.

Valuation Enclopaedia
I have both the 1st edition and 2nd editions. It is the most logical and complete valuation text around. Takes you through valuation processes as well as compares various methods step-by-step, logically and rationally. I also have the McKinsey edition and although it's good, it cannot compare with Damodaran's in clarity of language and logical reasoning.

The best valuation book I know of, but not perfect.
I bought this book to replace an older valuation book also by Damodoran. I'm a professional analyst and am quite familiar with valuations, and this book provides a very thorough and comprehensive guide. I bought it just in time to serve as guidance through a very heavy and comprehensive research project.

Everything I needed for the project was in the book, however one thing surprised and disappointed me: the organization. I simply don't see much of a logical flow in the chapter structure, so I think it would be more difficult to someone who wasn't already familiar with the basic structure of the valuation process. Why is market efficiency jammed between unrelated chapters? Why is the discussion and examples of the pro-forma capitalization of R&D split between distant chapters? Throughout a single project, one would have to keep the book marked in several diffent places, not neccessarily in the order that one would have to deal with the questions if one were doing a valuation. The result is that this book is less easy to use as a practical guidebook than it could be, and will keep one busy in the index looking for where subjects are addressed.

This is nit-picking however. Professor Damodoran is to be congratulated for producing such a high quality and comprehensive text on valuation. ... Read more

Book Description

Praise for Applied Risk Analysis

"Once again, Dr. Mun has created a ‘must-have, must-read’ book for anyone interested in the practical application of risk analysis. Other books speak in academic generalities, or focus on one area of risk application. Applied Risk Analysis gets to the heart of the matter with applications for every area of risk analysis. You have a real option to buy almost any book–you should exercise your option and get this one!"
–Glenn Kautt, MBA, CFP, EA, President and Chairman, Monitor Group, Inc.

"Johnathan Mun’s book is a sparkling jewel in my finance library. Mun demonstrates a deep understanding of the underlying mathematical theory in his ability to reduce complex concepts to lucid explanations and applications. For this reason, he’s my favorite writer in this field."
–Janet Tavakoli, President, Tavakoli Structured Finance, Inc. and author of Collateralized Debt Obligations & Structured Finance

"Every year the market of managerial books is flooded again and again. This book is different. It puts a valuable tool into the hands of corporate managers who are willing to stand up against uncertainties and risks and are determined to deliver value to shareholder and society, even in rough times. It is a book for the new generation of managers, for whom Corporate America is waiting."
–Dr. Markus Götz Junginger, Managing Partner
IBCOL Consulting AG (Switzerland)

"Dr. Mun breaks through the hyperbole and presents a clear step-by-step approach revealing to readers how quantitative methods and tools can truly make a difference. In short, he teaches you what's relevant and a ‘must know.’ I highly recommend this book, especially if you want to effectively incorporate the latest technologies into your decision making process for your real world business."
–Dr. Paul W. Finnegan, MD, MBA, Vice President, Commercial Operations and Development, Alexion Pharmaceuticals, Inc.

"A must read for product portfolio managers . . . it captures the risk exposure of strategic investments, and provides management with estimates of potential outcomes and options for risk mitigation."
–Rafael E. Gutierrez, Executive Director of Strategic Marketing and Planning, Seagate Technology

"Johnathan Mun has previously published a number of very popular books dealing with different aspects of risk analysis-associated techniques and tools. This last publication puts all the pieces together. The book is really unavoidable for any professional who wants to address risk evaluation following a logical, concrete and conclusive approach."
–Jean Louis Vaysse, Deputy Vice President Marketing, Airbus (France) ... Read more

Book Description

A fully revised guidebook on the basics of accounting-- updated to cover an increasingly complex financial arena

In the wake of recent accounting scandals, most managers now realize they need to know more about the inner workings of finance. Many, however, don't know where they will find the time. The McGraw-Hill 36-Hour Course in Finance for Non-Financial Managers is designed to give readers a working mastery of all finance essentials in just 36 hours and has now been updated to help readers understand the substantial regulatory and practical changes that have taken place in the new world of business accounting. This hands-on workbook delivers its information in accessible and reader-friendly style, including self-study questions and case studies for each chapter. Information new to this edition includes:

• Key updates to generally accepted accounting principles (GAAP)
• Sections detailing what auditing is and what auditors do
• Entirely new sections on pro forma financial statements, stock options as an expense, and more

Book Description

Praise for Essentials of Entrepreneurship

"To all new entrepreneurs: please read Essentials of Entrepreneurship before making your Þrst visit to potential investors, be they corporate, venture capitalists, or angels."
–William F. Miller, Professor Emeritus, Stanford Graduate School of Business
Chairman, Borland Software Corporation

"An informative and inspirational book for aspiring entrepreneurs building collective experiences and wisdom of outstanding leaders in the Þeld."
–Laura D’Andrea Tyson, Dean, London Business School

"The book literally covers every aspect of preparing the entrepreneur for creating a successful company."
–Suhas Patil, Founder and Chairman Emeritus, Cirrus Logic Inc.

"A unique collaboration of TiE, which has brought together experts from competing Þrms for the beneÞt of entrepreneurship."
–Alfred Berkeley, Vice Chairman, the NASDAQ Stock Market

"This book represents the collective wisdom of The Indus Entrepreneurs (TiE); a required reading for aspiring and practicing entrepreneurs."
–Desh Deshpande, Co-Founder & Chairman, Sycamore Networks ... Read more

Reviews (1)

Must read book written by 60 practitioners and experts
I am one of the authors and am the director of TiE Entrepreneur Institute. TiE is a premiere entrepreneurial support organization started in the silicion valley in 1992 and now has 42 centers in 12 countries. TiE focuses on mentorship, networking and education. Many of the authors are associated with TiE and helped create companies valued over 200 billion dollars. You won't find the material written in this book anywhere else because many of the people are not academics but practitioners: VCs, successful entrepreneurs, consultants with real experience in building companies. Many of the people who wrote this book are luminaries in their field. This book contains guidelines, processes, practical suggestions and charts to help you launch and run your business to become successful.

We use this book as a resource book in TiE Institute to teach our entrepreneur sessions (over 2000 people attended our sessions in silicon valley last year) and recommend that you buy it and check it out for yourself! ... Read more

Book Description

The ninth edition of this successful text provides a comprehensive and contemporary introduction to financial management, focusing on shareholder wealth maximization and cash flow management, the international aspects of financial management, the ethical behavior of managers, and the increased impact of the Internet in business practice. In addition, content has been added or enhanced to reflect the changing focus on finance areas including topics such as discounted payback period, dividend practices of foreign firms, risk management, and real options. ... Read more

Reviews (4)

A Useful Book For My Work
The person I bought this book for found it very useful for his studies and the attached Cd-ROM very useful with its chapter reviews and tests.

Far too easy
The book is far too easy for professionals and for university students. The blanks exercises are really stupid. If you are not experienced in mathematics or statistics you will probably like the book because there are no derivations of formules or demonstrations of theorems.

An Excelent Book
Because of the deep grade themes are studied. Basic for student and professionals...

CONTEMPORARY
I POSSES THE THIRD EDITION REVISED PRINTING. I WAS WERY SATISFIED WITH THE BOOK. I GET IT FROM MY RELATIVES IN USA. NOW I WOULD LIKE TO HAVE THE "CONTEMPORARY" EDITION. BEST REGARDS FROM SLOVENIJA JANEZ KURE ... Read more

Book Description

A practical guide to proactive investor relations (IR)
Investor relations (IR) has traditionally been an administrative function within corporate communications, responsible for disseminating public information and answering investor and media questions. Using Investor Relations to Maximize Equity Valuation challenges this approach, by arguing that IR has been underutilized and then illustrating how it should be elevated to lead a strategic communications effort to preserve or enhance corporate value and lower a company's cost of capital. Divided into four comprehensive parts, this book clearly describes capital markets strategies and tactical operations that these former, senior-level equity analysts and portfolio managers employ.
Chad A. Jacobs (Westport, CT) and Thomas M. Ryan (Westport, CT) are the cofounders and co-CEOs of Integrated Corporate Relations. ... Read more

Book Description

PROFITS ARE AN OPINION, BUT CASH IS A FACT.

Understanding CASH FLOW

If the term "cash flow" has always remained uncomfortably vague in your mind, Understanding Cash Flow will give you, quickly and simply, a firm grasp of this crucial index of a company's health and direction. It covers, in detail, the process, the terminology, and the internal and external players in the flow of cash through a company. You'll learn:

• The fundamentals of cash management and how it affects the quality of a company's earnings
• How to read cash flow statements
• How cash balances are analyzed and monitored—including internal controls over cash receipts and disbursements, plus bank account reconciliation and activity analysis
• How to avoid the pitfalls of granting credit—evaluating customer credit, sources of credit information, and overall credit policy
• How to prevent fraud and waste
• And much more!

Understanding Cash Flow is a part of the new Wiley series, Finance Fundamentals for Nonfinancial Managers—designed to serve managers, owners, investors, students and others by explaining clearly and concisely what they need to know about important areas of cash flow management. Other titles in the series will cover income statements, return on investment, budgeting, and balance sheets. ... Read more