<< 1 >>
Rating: 
Summary: Compact, Valuable
Review: This compact (252 page) book provides a practical approach to structured forecasting and valuation which is based on the Eval 2003 software provided on CD-ROM. This software, though containing a few bugs, provides a systematic methodology for predicting income statements and balance sheets, based on data provided on more than 3000 companies in a consistent format. Given that this book assumes quite a bit of knowledge about financial statement analysis, I do not consider it a substitute for a basic textbook. However, after having built dozens of valuation spreadsheets over the years, I appreciate the work that went into developing Eval. The book documents the approach well, and when in doubt the Eval spreadsheet can be consulted. The authors of this text are experts in their field, and in particular have made lasting contributions to Accounting Analysis ("accruals") that are described in this book. One caveat -- during the process of working with Eval I found a number of bugs in the software (a field was not imported correctly, a minus sign appeared to have left out of another field, etc.) that should have been caught prior to publication. Readers should pay particular attention to the "plug" assumptions, since these may be require adjustments in many cases. However, if Eval is treated as a point of departure for a financial analysis, rather than a final result, readers will gain considerable value from this book and will be able to stay clear of potential pitfalls.
Rating:
Summary: Compact, Valuable
Review: This compact (252 page) book provides a practical approach to structured forecasting and valuation which is based on the Eval 2003 software provided on CD-ROM. This software, though containing a few bugs, provides a systematic methodology for predicting income statements and balance sheets, based on data provided on more than 3000 companies in a consistent format. Given that this book assumes quite a bit of knowledge about financial statement analysis, I do not consider it a substitute for a basic textbook. However, after having built dozens of valuation spreadsheets over the years, I appreciate the work that went into developing Eval. The book documents the approach well, and when in doubt the Eval spreadsheet can be consulted. The authors of this text are experts in their field, and in particular have made lasting contributions to Accounting Analysis ("accruals") that are described in this book. One caveat -- during the process of working with Eval I found a number of bugs in the software (a field was not imported correctly, a minus sign appeared to have left out of another field, etc.) that should have been caught prior to publication. Readers should pay particular attention to the "plug" assumptions, since these may be require adjustments in many cases. However, if Eval is treated as a point of departure for a financial analysis, rather than a final result, readers will gain considerable value from this book and will be able to stay clear of potential pitfalls.
<< 1 >>
| 
