This book will teach you how to bring together what you know
of finance, accounting, and the spreadsheet to give you a new
skill—building financial models. The ability to create and unde
stand models is one of the most valued skills in business an
finance today. It’s an expertise that will stand you in good stea
in any arena—Wall Street or Main Street—where numbers ar
important. Whether you are a veteran, just starting out on you
career, or still in school, having this expertise can give you
competitive advantage in what you want to do....
Financial Analysis Tools and Techniques, a business-focused revision of Erich Helfert's perennial college bestseller Techniques of Financial Analysis, is a quick, easy read for nonfinancial managers and an excellent refresher and reference for finance professionals. This practical, hands-on guide provides a new introductory chapter that gives context to today's valuation turmoil and helps professionals understand the economic drivers of a business and the importance of cash flow.
Professor Wahlen's teaching and research interests focus on financial accounting, financial statement analysis and the capital markets. His research investigates earnings quality and earnings management; earnings volatility as an indicator of risk; fair value accounting for financial instruments; accounting for loss reserve estimates by banks and insurers; stock market efficiency with respect to accounting information; and testing the extent to which future stock returns can be predicted with earnings and other financial statement information. ...
We decided to write this book when we discovered that a majority of the companies
we talked to had dysfunctional and low-value added processes for budgeting, fore-
casting, and financial reporting. And, as financial executives come and go, typically
little is done to streamline these processes. Even when large amounts of money are
invested in new financial software, the solutions are usually put in place based on
the old, inefficient routines.
The original Streetsmart Guide to Valuing a Stock was conceived and
outlined on a trip to Spain. The concepts underlying stock valuation
crystallized only as real livestock (6 fighting bulls and 8 steers) at-
tempted to run over us on the narrow, crowded streets of Pamplona.
Integral to the book’s progress were the discussions, over many fine
meals with our friends in Navarra, of its structure and international
appeal. Ana Vizcay and Eduardo Iriso, María Jesus Ruiz Ciordía and
Emilio Goicoechea, Luis Arguelles and Merche Amezgaray,...
Measuring and Managing the Value of Companies
WILEY FINANCE Advanced Fixed-Income Valuation Tools, Narasimham Jegadeesh and Bruce Tuckman Beyond Value at Risk, Kevin Dowd Buying and Selling Volatility, Kevin B. Connolly Chaos and Order in the Capital Markets: New View of Cycles, Prices, and Market Volatility, Second Edition, Edgar E. Peters Corporate Financial Distress and Bankruptcy, Second Edition, Edward I.
This volume is an adaptation for the professional market of the most recent 10th (“millennium”) edition of Dr. Helfert’s best-selling Techniques of Financial Analysis, which, with more than half a million copies in print over the past 38 years, has given the student, analyst, and business executive a concise, practical, usable, and up-to-date overview of key financial/economic analysis tools.
Financial Analysis Tools and Techniques, a business-focused revision of Erich Helfert's perennial college bestseller Techniques of Financial Analysis, is a quick, easy read for nonFinancial managers and an excellent refresher and reference for...
Some 20 years ago, after years of teaching corporate finance and writing
related textbooks and casebooks, I began teaching healthcare financial
management in the University of Florida’s Master of Health Administration
(MHA) program. The move prompted me to write my first healthcare
finance textbook, Understanding Health Care Financial Management. The
book was designed for use in health services administration financial management
courses in which students had prerequisite courses in both accounting
and corporate finance.
The process of financial reporting, financial statement analysis, and valuation is intended
to help investors and analysts to deeply understand a firm’s profitability and risk and to use
that information to forecast future profitability and risk and ultimately value the firm,
enabling intelligent investment decisions. This process lies at the heart of the role of
accounting, financial reporting, capital markets, investments, portfolio management, and
corporate management in the world economy.
The process of financial reporting, financial statement analysis, and valuation is intended to help investors and analysts to deeply understand a firm’s profitability and risk and to use that information to forecast future profitability and risk and ultimately value the firm, enabling intelligent investment decisions. This process lies at the heart of the role of accounting, financial reporting, capital markets, investments, portfolio management, and corporate management in the world economy.
The Financial Valuation Workbook (FVW) contains both educational exercises that
guide the reader through a complete business valuation and valuation tools that
professionals can use in preparing business valuations. It is structured to be used on
a stand-alone basis. It is also a companion text to Financial Valuation: Applications
and Models (FV) (John Wiley & Sons), where the subject matter contained in the
workbook is expanded upon.
Basic Skills: (Time value of money, Financial Statements)
Investments: (Stocks, Bonds, Risk and Return)
Corporate Finance: (The Investment Decision - Capital Budgeting)
For Investors, the rate of return on a security is a benefit of investing.
For Financial Managers, that same rate of return is a cost of raising funds that are needed to operate the firm.
In other words, the cost of raising funds is the firm’s cost of capital.
In a “perfect world” environment with no taxes, no transaction costs and perfectly efficient financial markets, capital structure does not matter.
This is known as the Independence hypothesis: firm value is independent of capital structure.
In general, the intrinsic value of an asset = the present value of the stream of expected cash flows discounted at an appropriate required rate of return.
it’s like common stock - no fixed maturity.
technically, it’s part of equity capital.
it’s like debt - preferred dividends are fixed.
missing a preferred dividend does not constitute default, but preferred dividends are cumulative.
Bonds pay fixed coupon (interest) payments at fixed intervals (usually every 6 months) and pay the par value at maturity.
Debentures - unsecured bonds.
Subordinated debentures - unsecured “junior” debt.
Mortgage bonds - secured bonds.
Zeros - bonds that pay only par value at maturity; no coupons.
Junk bonds - speculative or below-investment grade bonds; rated BB and below. High-yield bonds.
Eurobonds - bonds denominated in one currency and sold in another country. (Borrowing overseas).
example - suppose Disney decides to sell $1,000 bonds in France. These are U.S.
The combination of opportunity and execution.
Opportunities must be recognized, and
Employees must be ready, willing and able to take advantage of the opportunities.
Using the P/E ratio:
If a firm’s P/E ratio is 20, then a dollar increase in earnings per share will create $20 in additional equity value per share.
Problem: ignores R&D, which would reduce earnings per share, but should increase future earnings!
The first all-inclusive guidebook for designing, building, and implementing a sturdy core valuation/projection model
In today’s no-room-for-error corporate finance market, precise and effective financial modeling is essential for both determining a company’s current value and projecting its future performance. Yet few books have explained how to build models that accurately interpret a company’s financial statement, while none have focused on projection models.
Financial markets play a major role in allocating wealth and excess savings to productive
ventures in the global economy. This extremely desirable process takes on various
forms. Commercial banks solicit depositors’ funds in order to lend them out to businesses
that invest in manufacturing and services or to home buyers who finance new
construction or redevelopment. Investment banks bring to market offerings of equity
and debt from newly formed or expanding corporations.