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Product Description Navigate equity investments and asset valuation with confidence Equity Asset Valuation, Third Edition blends theory and practice to paint an accurate, informative picture of the equity asset world. The most comprehensive resource on the market, this text supplements your studies for the third step in the three-level CFA certification program by integrating both accounting and finance concepts to explore a collection of valuation models and challenge you to determine which models are most appropriate for certain companies and circumstances. Detailed learning outcome statements help you navigate your way through the content, which covers a wide range of topics, including how an analyst approaches the equity valuation process, the basic DDM, the derivation of the required rate of return within the context of Markowitz and Sharpe's modern portfolio theory, and more. Equity investments encompass the buying and holding of shares of stock in the anticipation of collecting income from dividends and capital gains. Determining which shares will be profitable is key, and an array of valuation techniques is applied on today's market to decide which stocks are ripe for investment and which are best left out of your portfolio. Access the most comprehensive equity asset valuation text on the market Leverage detailed learning outcome statements that focus your attention on key concepts, and guide you in applying the material accurately and effectively Explore a wide range of essential topics, such as the free cash flow approach, valuation using Graham and Dodd type concepts of earning power, associated market multiples, and residual income models Improve your study efforts by leveraging the text during your CFA certification program prep Equity Asset Valuation, Third Edition is a comprehensive, updated text that guides you through the information you need to know to fully understand the general analysis of equity investments. From the Inside Flap CFA INSTITUTE INVESTMENT SERIES Navigate equity investments and asset valuation with confidence "Equity Asset Valuation helps bridge the gap between financial theory and practice, providing an objective view of the complementary and competing theories of, and approaches to, valuation. The authors explain and demonstrate the key absolute and relative valuation methods that are important to both the analyst valuing a company and the student of finance seeking to master valuation techniques. The book's many examples involving actual companies help the reader better appreciate nuances in the application of different valuation methods. This book is an excellent primer on the art of valuation." Pamela Peterson Drake, PhD, CFA, Chandler/Universal Eminent Professor of Finance, James Madison University "Valuation is a bridge between stories and numbers. Equity Asset Valuation provides the tools and basic techniques that you need to master to be able to build that bridge and it does so without intimidating jargon, unnecessary theory and unwanted distractions." Aswath Damodaran, Professor of Finance, Stern School of Business, New York University "In order to succeed as a security analyst it is critically important to have a thorough understanding of the basic fundamental underpinnings of valuation. Equity Asset Valuation provides this in a clear methodical fashion." Paul D. Sonkin, Portfolio Manager, Gabelli Asset Management, and Adjunct Professor, Columbia Business School From the Back Cover Whether you are a novice investor or an experienced practitioner, Equity Asset Valuation, Third Edition has something for you. Part of the CFA Institute Investment Series, this authoritative guide is relevant the world over and integrates both accounting and finance concepts to deliver a potent collection of valuation models, as well as challenge readers to determine which models are most appropriate for specific companies and situations. This updated edition brings back the distin