Streetsmart Guide to Valuing A Stock: The Savvy Investor’s Key to Beating the Market
$15.65
Streetsmart Guide to Valuing A Stock covers everything from basic stock valuation to more advanced valuation models and techniques. Its nuts-and-bolts, nontheoretical methods will be invaluable in helping you locate and analyze undervalued stocks. The book outlines the fundamentals of making an investment decision in a stock based on a reasoned evaluation of that stock’s worth. The writing is direct, logical, and remarkably interesting.
Intorduction:
Streetsmart Guide to Valuing a Stock is a how-to book that provides you with the tools to make money in the stock market. The book’s focus is on stock valuation—an area of great interest to many investors, but understood by very few. When you’ve finished this hands-on, easy-to-use guide, you will have learned how to:
- Value stocks of general market and high-tech companies, such as Microsoft and Cisco Systems;
- Value stocks of financial companies and real estate investment trusts, such as Citigroup, Merrill Lynch, Berkshire Hathaway, and Washington REIT;
- Spot undervalued or overvalued stocks for buying and selling opportunities;
- Estimate important valuation inputs such as growth, operating margin, and cost of capital;
- Find valuation inputs on free Internet Web sites;
- Develop a spreadsheet to value a stock;
- Combine stocks in an efficiently structured investment portfolio;
- Manage your risk; and
- Use the 10 principles of finance to your advantage.
This book is for all of you who mistakenly think you have to be a stock market guru to value stocks like a pro. All the tools you need to value stocks are outlined in the chapters that follow. All that is required is a bit of patience, practice, and persistence. You don’t need an MBA to understand the book’s concepts or the 10 principles. The goal of the book is to give all stock market participants—individual investors, investment club members, stockbrokers, SEC staffers, corporate managers, directors of corporate boards, and ordinary people who want to learn about stock valuation—a simple quantitative approach for estimating stock values. Our model is a recipe for correctly and conservatively valuing common stock and increasing investment profits.
Our goal is to teach you about stock valuation by using a simple and powerful valuation model. This book will make you a better informed, more intelligent, more profitable investor and will help you to understand why stocks such as Cisco trade at $14.45 and Berkshire Hathaway trades at $72,000 per share. Our valuation approach revolves around some very simple calculations that use only addition, subtraction, multiplication and division—no calculus, differential equations, or advanced math. So let’s begin by taking our initial plunge into stock valuation.
Contents:
- INTRODUCTION AND OVERVIEW
- THE 10 PRINCIPLES OF FINANCE AND HOW TO USE THEM
- STOCK VALUATION: SOME PRELIMINARIES
- HOW TO VALUE A STOCK
- FORECASTING EXPECTED CASH FLOW
- ESTIMATING THE COST OF CAPITAL
- FINDING INFORMATION FOR VALUATIONS
- VALUING A STOCK—PUTTING IT ALL TOGETHER
Streetsmart Guide to Valuing A Stock: The Savvy Investor's Key to Beating the Market By Gary Gray, Patrick Cusatis, J. Randall Woolridge pdf
| Author(s) | |
|---|---|
| Format | |
| Pages | 289 |
| Publication Year | 2004 |
20 reviews for Streetsmart Guide to Valuing A Stock: The Savvy Investor’s Key to Beating the Market
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Eden Patton (verified owner) –
Excellent
Aziel Gonzalez (verified owner) –
Very cheap products
Abigail Brewer (verified owner) –
Finally, there is a book that answers the question, “what is the stock truely worth?” The software makes it really easy to value companies, and has helped me a great deal in my investment decisions.
Sterling Page (verified owner) –
I expected much more from this book but it really dispointed me.
Sarai McDowell (verified owner) –
i found that the authors convesational style drifted in and out of his description of his discounted cash flow formula, making the ‘chain’ or ‘formula’ difficult to follow. i had to go to the website to get an overview while reading the book to make heads or tails of the system. i think he only wrote the book to sell his software. a more direct, no nonsense, clearly written choice would be john malloy’s ‘what are stocks really worth’. this gives the investor a customized formula for his needs. it is EXCELLENT. buy this book and make your own spreadsheet- you’ll be glad you did
Kamari Fleming (verified owner) –
The methodology doesn’t cover some industries (financial, insurance etc) but for the majority of companies this will come up with an intrisic value (not book value) of the future earnings discounted over time for inflation, risk etc. I made a spreadsheet that does the methodolgy the book teaches, but the author has one for sale. I wish I had the spreadsheet before reading it, as I had to reread sections to gain a good understanding after I had the spreadsheet. It allows you to follow along his examples and “see” the numbers and forecasts effect the valution. I will email my version to any interested parties. No instructions, bare bones, but works. You wont understand it without the book.
Fernando Boone (verified owner) –
Using discounted cash flow (DCF) to estimate the intrinsic value of a stock is not for those looking for those looking for easy rules of thumb; it requires work. This book, together with the related website, does a good job of showing how, in language that doesn’t require you to be an MBA. Recommended.
Declan Gibson (verified owner) –
If one is patient with this book, one will reap many rewards.
DCF explained from start to finish.
Lachlan Blackburn (verified owner) –
If you do not know how to value a stock, how do you know if you are getting a good deal? You don’t. Valuations are important and this book teaches readers how to estimate the intrinsic value of a company and its stock. I like how the author makes the point that investors must first like the company and that valuation is secondary. Valuations only help investors with determining if the stock is overvalued or undervalued.
Analysts also publish their opinions of intrinsic values. The author makes readers aware that valuation results depend on certain assumptions. Investors equipped with the skills of valuing companies will be able to make valuation determinations without relying on analysts who are biased and do not necessarily act in the best interest of individual investors. I highly recommend this book to investors.
Frida Hess (verified owner) –
“Risk comes from not knowing what you’re doing”
― Warren Buffett
This book really crystallize the Graham/Buffett approach to value investing with a Margin of Safety. I’ve done very well in the Stock market apply the methodology laid out in this book.
Remy Norman (verified owner) –
A good read. Worth the time.
Lawrence Krueger (verified owner) –
Not much information. Seems to be trying to sell a product throughout book.
Mariam Alvarado (verified owner) –
As soon as I read “High returns requires taking high risk.” I stopped reading. The book assumes volatility to equal risk. That is a fundamental premise I don’t agree with. Value investors look elsewhere.
Holland Campbell (verified owner) –
Was what I wanted
Cruz Henderson (verified owner) –
The first half of this book did an admirable job of introducing the reader to various stock valuation terminology & methodology.
Unfortunately, the second half of the book focused almost solely on explaining, applying, and encouraging the purchase of their stock valuation software. Without this software, the second half of the book is somewhate limited in its value and use.
The book’s not a total loss, thanks to the first half, but is probably a better exercise in “book valuation”. This one’s valuation falls somewhere short of its purchase price. If it were a stock and I were to apply the owners valuation principles, it might be best to pass on buying it…
Hope this helps! Cheers!
Andres Kaur (verified owner) –
Everything you need in an easy to understand format.
Karina Higgins (verified owner) –
Book was Great!
Moises Zhang (verified owner) –
Everything you need to know about how to value a stock is inside this book – somewhere. Finding it however, can be a problem, as it sometimes seems that the editors used the random dart theory of selection in putting together the chapters. For example, in order to understand the concepts presented in Chapter two, you need information that is contained in Chapters three and five. Once you figure out how to navigate it, though, this book is a valuable resource and a powerful educational tool for investors from neophyte to intermediate. It’s encyclopedic in its scope, and the pages in the included glossary are sure to become dog-eared from use. We […] recommend this book to investors of all levels. Beginners will learn critical concepts and terms, while more experienced investors will come to rely on this book as a trusted reference companion.
Cataleya Jenkins (verified owner) –
Although some portions of the book are really tough to get through (formulas), overall the book is an easy read. Particularly given the human quips the authors insert throughout.
Christopher Colon (verified owner) –
Hakuna Matata = There are no problems (Simba in The Lion King).
Excellent – Merchandise arrived as described, excellent condition, prompt and well packaged, great quality, value and dependable service – I’m a happy camper: Thanks, and may the Force be with you!