Security Valuation

Security Valuation: A Simple Introduction offers an accessible guide to the principles and methods of security valuation, with examples and calculations to support the analysis.




Compare the three-step asset valuation process with the stock picking process, and understand why economy analysis, industry analysis, and company analysis are all essential parts of valuation.




Examine the theory of valuation, determine the required rate of return, understand the stream of returns and the return on equity with the DuPont system, and reach an investment decision.




Learn how to value bonds, and preferred stock. Value common stock with the Dividend Discount Model and Gordon Growth Model. Model supernormal growth, and firms with different capital structures.




Explore the benefits of relative valuation, and understand price-to-earnings, price-to-cash flow, price-to-book, and price-to-sales methods.