Business Analysis and Valuation: Using Financial Statements

by Krishna G. Palepu, Paul M. Healy, Victor L. Bernard

Financial statements are the basis for a wide range of business analysis. Managers, securities analysts, bankers, and consultants all use them to make business decisions. There is strong demand among business students for course materials that provide a framework for using financial statement data in a variety of business analysis and valuation contexts. BUSINESS ANALYSIS & VALUATION: USING FINANCIAL STATEMENTS, TEXT & CASES, 4E allows you to undertake financial statement analysis using a four-part framework--(1) business strategy analysis for developing an understanding of a firm's competitive strategy; (2) accounting analysis for representing the firm's business economics and strategy in its financial statements, and for developing adjusted accounting measures of performance; (3) financial analysis for ratio analysis and cash flow measures of operating; and (4) prospective analysis. Then, you'll learn how to apply these tools in a variety of decision contexts, including securities analysis, credit analysis, corporate financing policies analysis, mergers and acquisitions analysis, and governance and communication analysis.

Genres: Finance, Business, Accounting, Textbooks, Economics

336 pages, Paperback

First published January 1, 1996

Reviews

[Jose Parra · Rating 4 out of 5]

comparisons of IFRS and GAAP are interesting

[Greg · Rating 3 out of 5]

Textbook for financial analysis of businesses. I felt like it was put together from different pieces and didn't contain full mental models of the issues discussed.

It contains information on:
- competitiveness analysis
- basic accounting rules
- financial statement analysis (also motives for management to use accounting rules to suit their bonuses and how to spot them e.g. changes of rules without adequate reason)
- financial forecasting
- valuation techniques (DCF, Discounted Abnormal Earnings, Price Multiples - no mention e.g. price to multi-year multiples like CAPE)
- credit analysis
- mergers and acquisitions analysis (pricing, financing, friendly vs hostile)

In summary the book contains valuable information but it is not a great book.

[Andy Tan · Rating 4 out of 5]

good.

[دينـا]

its foucs more on finance than accounting , i found some difficalte with the way of book but its good ..

[Jay Vallender]

Pretty sure there is an Asia Pacific edition but read the edition in uni back in the day. It was provided to the class with a PDF link and was able to use it in class. I think there is a similar valuation book from Aswath Damodaran that is based on reviews comparable. I have that one to read so may come back to update. Otherwise case studies were the highlight. Maybe review the contents for the company names then do a search for them for your own analysis.