Financial Statement Analysis and Security Valuation  (English, Paperback, Penman Stephen)

A classic academic text that enables readers to demystify financial statements, making optimum stock purchase decision possible and proclaims an epoch making statement “one buys a business and not a stock”.

Summary Of The Book

The third edition of Financial Statement Analysis And Security Valuation met with thunderous appreciation of the critics as it unfolds in simple, and easy to understand language, the methodology of analyzing financial statements before buying a stock in a company. While purchasing a stock, an investor actually purchases an interest in the business therefore taking the right decision at the right time could make or mar a stakeholder. Financial statement books usually baffle the readers with complex terms and fail to arouse interest in the subject. Professor Stephen’s text is a brilliant exception that presents the subject with astonishing clarity doing away with drab academic jugglery.

The book bridges the gap between Accountancy and Finance by successfully integrating them to facilitate optimal decision making. With loads of real life case studies, this book outlines the valuation tools and emphasizes their use as a regular exercise in financial statement analysis. Coming handy with spreadsheet tools to give the students look and feel of real life data analysis, the book comprises of comprehensive exercises in increasing order of difficulty.

The book presents multifarious ratios of analysis and challenges the readers to think beyond accrual accounting and cash flow. The beauty of Professor Stephen’s work culminates in seamlessly integrating two apparently standalone activities of Accounts and Finance into one meaningful whole.

About Stephen H. Penman

Dr. Stephen H. Penman, a well known name in the erudite circle is a brilliant teacher who won various accolades for his notable contribution in the field of Finance and Accountancy.

His Accounting for Value by Columbia Business School Publication is rated as an all time best by graduate and postgraduate students of Finance around the globe. He is the author of a distinguished treaty on Financial Accounting known as A Framework for the Development of a Theory of Financial Accounting.

Acclaimed for his writing style that elucidates complex concepts of Finance in simple words understandable to layman, Professor Penman continues enriching academic literature with his astounding works. His writing is free from jargons and provides a systematic framework for investors to make meaningful investment possible. He challenges a lot of conventional accounting formulae and clearly indicates their limitations.

A first class graduate with honors from the University of Queensland, Australia, he holds an MBA and Ph.D. degree from University of Chicago and has several research papers to his credit. His research revolves around interpreting account information for analyzing securities and delves into valuation of equity capital. He has published creditworthy works for various academic journals and lectured in various seminars across the world. Proud recipient of the honorary Doctorate from the Stockholm School of Economics, Professor Penman adorns the George O May Professor’s chair in the Graduate School of Business, Columbia University.