Applied Equity Analysis

About the book and its Contents

Spanning 420 pages, Applied Equity Analysis is one of the most expensive finance books I have ever invested in a few years back. It is also a very highly advanced work which requires a fair amount of knowledge in finance. You do not however, need to be a stock trader working in a stock brokerage firm to understand the chapters.

The first chapter gives an introduction to the life of an equity analyst. the fundamentals of stock behavior and some frameworks for understanding the firm's business environment. The second part of the book expounds on the tools you will need such as reading financial statements. The third part discusses financial modeling, The last parts end with the discussion on equity valuation and the writing down of the report.

Review

There is a great amount of knowledge that can be obtained from this work. Furthermore, this book is done with a more practical teaching approach instead of an entirely theoretical one. It contains many real-life examples of companies listed in the U.S. It also contains a lot of charts and formulas. The only thing lacking with this work however is that it does not teach you how to encode the formulas in Microsoft Excel. The reader should be the one to find a way on how to incorporate it for his own use.

Difficulty Level = 4/5

This work is suitable for those with advanced knowledge in investments and finance.

Personal Rating = 4/5

Although quite expensive, this is one of the most authoritative reference books you can find in finance.



Personal finance tip for today:


Do not spend everything you earn as if the world will end tomorrow. What if the world didn't end and life continued to move on? How will you survive then? Regardless of how much you earn, you should allot a sizable percentage of your income to your personal savings. Having a pool of savings to sustain you in times of need reduces a lot of stress.


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