Applied Equity Analysis: Stock Valuation Techniques for Wall Street Professionals

Today's Most Comprehensive Practitioner's Guide to Modern Equity Analysis

professional equity analysts must contend with a number of strong forces, each pulling in separate but equally relentless directions. Applied Equity Analysis ties these disparate elements into a seamless whole, and presents a clear, complete equity analysis picture.

written from the working analyst's point of view, in a singularly candid style that is both thought provoking and illuminating, Applied Equity Analysis covers:

• How to think, speak, and develop investment recommendations in the language of Wall Street
• How competitive forces directly impact financial results and, in the process, drive stock valuation
• How to use valuation methodologies designed to quantify the growth and earnings assumptions inherent in speculative stock prices

Applied Equity Analysis emphasizes techniques that work on a day-to-day basis, rather than traditional but often impractical academic approaches. By combining a solid discussion of finance and investment theory with techniques popular among today's buy- and sell-side analysts, it presents a picture of stock investment analysis that is analytically rigorous, aggressively uncompromising, and based on earnings­­the true driving force of Wall Street.

"The equity analyst's job is to present a position, supported by financial and non-financial evidence. Data unnecessary to the argument are, in a word, unnecessary. However, the analyst must understand all the data, relevant or not. The ultimate goal of the equity analyst is the exploitation of any difference between a stock's price and its value."
­­from chapter 1

Applied Equity Analysis is about understanding all the data. Written by former JP Morgan managing director James English­­an adjunct professor of finance at the Columbia University School of Business, honored by the wall street journal for his stock analysis skills­­this innovative book treats valuation as a practical tool rather than a theoretical exercise. Its integrated approach shows you how to build straight-line connections between a firm's fundamental competitive situation and its stock performance, by combining an understanding of a firm's competitive strengths and weaknesses with accurate financial statement analysis­­to build a more complete model of a firm's future stock market performance

combining a solid discussion of finance and investment theory with techniques frequently used by working buy- and sell-side analysts, Applied Equity Analysis discusses:

• Specific valuation techniques for identifying stocks that are undervalued relative to their peers
• Quantitative techniques to link a firm's projected future financial performance to its potential future valuation­­based upon the current trading patterns of comparable stocks <...