Security Analysis and Business Valuation on Wall Street, Second Edition: A Comprehensive Guide to Today's Valuation Methods -- Contents -- Preface -- WHAT IS SECURITY ANALYSIS? -- RECENT TRENDS -- WHY STUDY SECURITY ANALYSIS AND BUSINESS VALUATION? -- OVERVIEW OF THE CONTENTS -- WHAT'S NEW IN THE SECOND EDITION -- Part One: The Investing Environment -- Chapter 1: Why Analyze a Security? -- THE ORIGINS OF SECURITY ANALYSIS -- NO PROFIT GUARANTEE -- DAY-TO-DAY TRADING AND SECURITY ANALYSIS -- HERD PSYCHOLOGY AND SECURITY ANALYSIS -- MOMENTUM INVESTORS -- GAME THEORY AND SECURITY ANALYSIS -- THE PREMISE OF SECURITY ANALYSIS -- SCIENTIFIC METHOD -- SECURITY ANALYSIS TECHNIQUES -- BASIC VALUATION APPROACHES -- OTHER VALUATION APPROACHES -- SUMMARY -- Chapter 2: Who's Practicing Security Analysis and Business Valuation? -- SECURITIES FIRMS AND THEIR ANALYSTS -- MAJOR INSTITUTIONAL INVESTORS -- A DYING ART? -- INDEX FUNDS AND EXCHANGE-TRADED FUNDS -- SMALL MONEY MANAGEMENT FIRMS -- RATING AGENCIES -- INDIVIDUAL INVESTORS: A SPECIAL CATEGORY -- BUSINESS VALUATION -- SUMMARY -- Chapter 3: Seeking a Level Playing Field -- BRIEF HISTORY OF SECURITIES REGULATION -- THE CHIEF REGULATOR: THE SECURITIES AND EXCHANGE COMMISSION -- SALES AND TRADING PRACTICES -- MARGIN REGULATION -- THE LIFE CYCLE OF A NEW SECURITY ISSUE -- SUMMARY -- Chapter 4: Other Sources of Information -- THE BUSINESS MEDIA -- THE FREE INTERNET -- THE FEE-FOR-SERVICE INTERNET -- TRADE ASSOCIATIONS, CONSULTING FIRMS, GOVERNMENT PUBLICATIONS, AND FINANCIAL ORGANIZATIONS -- CREDIT RATING AGENCIES -- SECURITIES FIRM RESEARCH -- NEWSWIRES -- INDEPENDENT EXPERT SERVICES -- SUMMARY -- Part Two: Performing the Analysis and Writing the Research Report -- Chapter 5: Starting the Analysis -- THE SECURITY ANALYSIS PROCESS -- MODEL RESEARCH REPORT -- THE ANALYST'S RESPONSIBILITY.

THE CASCADE OF PROJECTIONS -- SELECTING STOCKS FOR STUDY: TOP-DOWN VERSUS BOTTOM-UP -- LIMITED TIME AND RESOURCES -- THE MARGIN OF SAFETY -- SUMMARY -- Chapter 6: Industry Analysis -- BACKGROUND -- ORGANIZING AN INDUSTRY ANALYSIS -- INDUSTRY CLASSIFICATION -- EXTERNAL FACTORS -- DEMAND ANALYSIS -- SUPPLY ANALYSIS IN THE INDUSTRY STUDY -- PROFITABILITY, PRICING, AND THE INDUSTRY STUDY -- INTERNATIONAL COMPETITION AND MARKETS -- SUMMARY -- Chapter 7: Company-Specific Analysis -- SYSTEMATIC APPROACH OF A BUSINESS ANALYSIS -- OVERVIEW AND BUSINESS DESCRIPTION -- PRODUCTS AND MARKETS SECTION -- PRODUCTION AND DISTRIBUTION -- COMPETITION -- OTHER TOPICS INCLUDED IN THE BUSINESS REVIEW -- SUMMARY -- Chapter 8: Financial Statement Analysis of an Established Business -- BEGINNING THE INVESTIGATION -- THE RAW MATERIALS OF AN ANALYSIS -- EVOLUTION OF THE APPROACH TO FINANCIAL STATEMENTS -- ILLUSTRATION OF THE BASIC APPROACH -- REVIEW OF NEIMAN MARCUS FINANCIAL ANALYSIS -- SUMMARY -- Chapter 9: The Limitations of Accounting Data -- BASIC ACCOUNTING ISSUES -- GLOBAL ISSUES -- COMPANY-SPECIFIC ACCOUNTING ISSUES -- THE FUNDAMENTAL OBJECTIVE OF PUBLIC COMPANIES -- CASE STUDY: STABILITY CORPORATION -- SUMMARY -- Chapter 10: Financial Analysis and Company Classification -- COMPANY CLASSIFICATIONS -- THE MATURE COMPANY -- THE GROWTH COMPANY -- THE CYCLICAL COMPANY -- THE DECLINING COMPANY -- THE TURNAROUND -- THE PIONEER -- FINANCIAL GAMES -- EXTRA SHARES OUTSTANDING? -- SUMMARY -- Chapter 11: Financial Projection Pointers -- THE CASCADE OF PROJECTIONS -- THE TYPICAL FINANCIAL PROJECTION -- ALTERNATE MEANS OF FORECASTING -- CRITIQUING THE HUNTSMAN CHEMICAL PROJECTION -- PREPARING PROJECTIONS -- CYCLICAL COMPANY FORECAST -- HOCKEY STICK PHENOMENON -- SUMMARY -- Part Three: Valuation and the Investment Decision -- Chapter 12: Valuation Methodologies.

ASSESSING EACH METHODOLOGY -- APPLYING MULTIPLE METHODOLOGIES -- SUMMARY -- Chapter 13: Intrinsic Value and Discounted Cash Flow -- ISSUES IN APPLYING DISCOUNTED CASH FLOW -- DISCOUNTED CASH FLOW VERSUS RELATIVE VALUE -- DISCOUNTED CASH FLOW AND THE P/E RATIO -- THE DISCOUNTED CASH FLOW VALUATION PROCESS -- SUMMARY -- Chapter 14: Discounted Cash Flow: Choosing the Right Discount Rate -- BETA -- THE BUILDUP METHOD FOR THE EQUITY RATE OF RETURN -- SPECIAL CASES -- SUMMARY -- Chapter 15: The Relative Value Approach -- REAL ESTATE ANALOGY -- WHAT'S THE RIGHT P/E RATIO? -- CASE STUDY: TEMPORARY STAFFING SERVICES -- VALUING AN INITIAL PUBLIC OFFERING -- BALANCE SHEET ITEMS AND RELATIVE VALUE -- HOW HIGH IS UP? -- SUMMARY -- Chapter 16: Marginal Performers -- DEFINING THE PROBLEM COMPANY -- SMALL COMPANIES AND RELATIVE VALUE -- SUMMARY -- Chapter 17: The Mergers and Acquisitions Market, Security Analysis, and Valuation -- UNDERSTANDING LEVERAGED BUYOUTS -- LBO MECHANICS -- CASE STUDY: KEANE, INC. -- HOW MUCH CAN THE PE FIRM PAY? -- LBO VALUATION AND THE SECURITY ANALYSIS OF A PUBLICLY TRADED COMPANY -- STRATEGIC TAKEOVER VALUES -- SUMMARY -- Chapter 18: Sum-of-the-Parts Analysis -- BACKGROUND -- TAXES FAVOR SPIN-OFFS VERSUS CASH SALES -- SAMPLE SUM-OF-THE-PARTS ANALYSIS -- BUSINESS DIVISION VALUATION -- NONOPERATING CORPORATE ASSETS AND LIABILITIES -- UNLOCKING SUM-OF-THE-PARTS VALUES -- SUMMARY -- Chapter 19: The Investment Recommendation -- SUMMARY TOP-DOWN ANALYSIS -- DISCOUNTED CASH FLOW VALUATION -- RELATIVE VALUE/SUM-OF-THE-PARTS VALUATION APPROACH -- ACQUISITION VALUE -- LEVERAGED BUYOUT METHOD -- INVESTMENT RECOMMENDATION -- SUMMARY -- Part Four: Special Cases -- Chapter 20: Private Equity -- INDUSTRY SEGMENTATION AND SIZE -- FEE STRUCTURE -- PRIVATE EQUITY DOES NOT BEAT THE S&P 500 -- PRIVATE EQUITY FUNDS AND INFORMATION COLLECTION.

PRIVATE EQUITY CHANGES TO THE PUBLIC COMPANY VALUATION METHODOLOGY -- LIQUIDITY AND CONTROL ADJUSTMENTS -- SUMMARY -- Chapter 21: Natural Resource Companies -- GENERAL METHODOLOGY -- THE FINANCIAL REPORTING OF NATURAL RESOURCE COMPANIES -- CASE STUDY: ENCORE ACQUISITION COMPANY -- MINING COMPANIES -- SUMMARY -- Chapter 22: Financial Industry Stocks -- PRODUCT LINES -- THE NATURE OF FINANCIAL ASSETS -- TWO SETS OF SKILLS -- LENDING -- LARGE COMMERCIAL BANKS -- SUMMARY -- Chapter 23: Insurance Companies -- GENERAL BACKGROUND -- PRINCIPAL FUNCTIONS OF AN INSURANCE COMPANY -- INSURANCE COMPANY REGULATION -- FINANCIAL STATEMENT ANALYSIS: PROPERTY AND CASUALTY COMPANY -- FINANCIAL STATEMENT RATIOS -- LIFE INSURANCE COMPANIES -- SUMMARY -- Chapter 24: Highly Speculative Stocks -- BACKGROUND -- DISCOUNTED CASH FLOW -- CASE STUDY: BALLARD POWER SYSTEMS -- VENTURE CAPITAL MARKUPS AND IPOS -- HISTORICAL PERSPECTIVE -- SECURITY ANALYSIS, TECHNOLOGY STOCKS, AND PORTFOLIO -- SUMMARY -- Chapter 25: Distressed Securities and Turnarounds -- INVESTMENT OPPORTUNITIES -- SCREENING TECHNIQUE -- RECOGNIZE THE OPTIONS OF AN UNSUCCESSFUL TURNAROUND -- FINANCIAL ANALYSIS OF A COMPANY WITH LEVERAGE PROBLEMS -- THE INVESTMENT DECISION -- EVALUATING TURNAROUNDS -- LIQUIDATIONS -- SUMMARY -- Chapter 26: International Stocks -- THE ROLE OF SECURITY ANALYSIS -- AMERICAN DEPOSITARY RECEIPTS -- DEVELOPED COUNTRY MARKETS -- RELATIVE VALUE MULTIPLES -- SUMMARY -- Chapter 27: The Emerging Markets -- EMERGING MARKETS AND SECURITY ANALYSIS -- STOCK PRICING GUIDELINES -- FINANCIAL PROJECTIONS -- EMERGING MARKET EQUITY DISCOUNT RATE -- RELATIVE VALUE IN THE EMERGING MARKETS -- SUMMARY -- Part Five: In Conclusion -- Chapter 28: Asset Booms and Busts -- THE 2008 CRASH: CONTRIBUTING CAUSES -- COLLAPSE OF THE U.S. HOUSING BUBBLE -- FAILURE OF THE REFEREES -- THE CERTAINTY OF ANOTHER CRASH.

HOW MIGHT SECURITY ANALYSIS AND BUSINESS VALUATION CHANGE? -- SUMMARY -- Chapter 29: Closing Thoughts -- Notes -- About the Author -- Index.