Traders and investors spend fortunes in time and money trying to gauge the real value of individual stocks. The Streetsmart Guide to Valuing a Stock introduces proven techniques for analyzing a stock's value, spotting undervalued and overvalued stocks, and understanding the impact of interest rate changes and earnings reports on stock prices. New topics include:
- Finance theory in the stock valuation process
- Short-term stock price versus long-term value
- Use of valuation models to uncover misstatements and outright fraud
About the Author
Gary Gray, Ph.D., is a professor of finance at Penn State University. A consultant to Wall Street investment banks, Dr. Gray was previously a managing director at Lehman Brothers. He contributes articles to a number of academic journals, including Harvard Business Review.
Patrick Cusatis, Ph.D., is a professor of finance at Penn State University at Harrisburg. Previously, he was a director with First Union Bank and vice president with Lehman Brothers. His articles have appeared in a number of academic journals, including the Journal of Financial Economics.
J. Randall Woolridge, Ph.D., is a chaired professor of finance at Penn State University. A former recipient of Penn State's Excellence in Teaching Award, Dr. Woolridge contributes articles to academic journals and has been highlighted in The Wall Street Journal and on CNN.
Table of ContentsEmpower Yourself with Information!
How to Value A Stock.
The Importance of Cash Flow.
The Five Most Important Cash Flow Measures.
"Don't Count Until You Discount!"
Where and How to Obtain Information for Valuations.
Valuations in Action.
A Spreadsheet Valuation Approach.
A: Web Site Addresses.
B: Stock Market Efficiency.
C: Investors' Required Return on Stocks.