An insider's look at security analysis and business valuation, as practiced by Wall Street, Corporate America, and international businesses

Two major market crashes, numerous financial and accounting scandals, growth in private equity and hedge funds, Sarbanes Oxley and related regulations, and international developments changed security analysis and business valuation substantially over the last fourteen years. These events necessitated a second edition of this modern classic, praised earlier by Barron's as a "welcome successor to Graham and Dodd" and used in the global CFA exam.

This authoritative book shows the rational, rigorous analysis is still the most successful way to evaluate securities. It picks up where Graham and Dodd's bestselling Security Analysis - for decades considered the definitive word on the subject - leaves off. Providing a practical viewpoint, Security Analysis on Wall Street shows how the values of common stock are really determined in today's marketplace. Incorporating dozens of real-world examples, and spotlighting many special analysis cases - including cash flow stocks, unusual industries and distressed securities - this comprehensive resources delivers all the answers to your questions about security analysis and corporate valuation on Wall Street.

The Second Edition of Security Analysis on Wall Street examines how mutual funds, private equity funds, hedge funds, institutional money managers, investment banks, business appraisers, and corporate acquirers perform their craft of security analysis and business valuation in today's highly charged environment. Completely updated to reflect the latest methodologies, this reliable resource represents the most comprehensive book written by someone who has actually worked as an investment banker, private equity executive, and international institutional investor.

• Shows the methodical process that practitioners use to value common stocks and operating companies and to make buy/sell decisions
• Discusses the impact of the two stock market crashes, the accounting and financial scandals, and the new regulations on the evaluation process
• Covers how Internet and computing power automate portions of the research and analytical effort
  
• Includes new case study examples representative of valuation issues faced daily by mutual funds, private equity funds, hedge funds, institutional investors, investment banks, business appraisers, and corporate acquirers
• Is a perfect tool for professors wishing to show their MBA students the essential tools of equity and business valuation

Security analysis and business valuation are core financial disciplines for Wall Streeters, corporate acquirers, and international investors. The Second Edition of Security Analysis on Wall Street is an important book for anyone who needs a solid grounding in these critical finance topics.

Average Customer Review: ( 28 customer reviews )
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The first five chapters really gave me the insiders view of how Wall Street operates, and how it prices IPO's, for example. The author, Jeffrey Hooke, worked on Wall Street a lot, and he doesn't pull any punches. Many things that go on are only semi-honest and he isn't afraid to reveal the dark underbelly of the securities business. I really liked the way he showed how many firms exaggerate their sales and earnings per share. You nevre see this sort of thing in other books.

Just by following his advice on pricing stocks on a relative value basis saved me about $3,000 on a recent trade. I recommend this book.

5 of 5 found the following review helpful:

Very resourceful from a broad persperctiveApr 16, 2004

I would recommend this book to someone who wants a broad exposure of "Security Analysis on Wall Street." Mr. Hooke gives a great overview of the many facets of securities analysis. The drawback of this book is that it lacks specifics. For example, I was interested in getting a deeper analysis of valuation methodologies, however, what I found was a general overview of this section--the author then jumped right on to the next section. This example relates to all of the topic areas. Going deeper into topic areas so that more educated and experienced readers could get insight was not available for the most part. Nevertheless, I rate this book 4 stars because it does a great job of giving a strong overview of security analysis. I would recommend this book, especially for beginners and intermediate students and practitioners.

7 of 8 found the following review helpful:

Warren Buffet would love this!Oct 15, 1998

This book is a cross between a textbook for would- be security analysts, a how-to book for corporate execs and investors and an expose of the Wall Street security analysis profession. It's a great insider look at the secutiry analysis business and he tells many of the seamy hidden sides of the Wall Street business of valuing stocks. At the same time, Hooke provides a very practical outline of how the pros come up with prices for stocks.. He tackles many different kinds of securities, from hi tech stocks to the distressed variety.

The book does a good job of explaining things to the individual investor. It's a little complicated in the middle of the book, but I think most readers and investors can profit by his methodical approach.

A 1990's version of Warren Buffet would like the book because it adheres to a modern value approach. Too many of the books I read on stock selection are so basic that they don't help much. This ones is a good guide, and it also can assist execdutives that need to value their company stocks.

4 of 4 found the following review helpful:

Budding Bankers (and others) Beware NOT reading this BookMay 17, 2010
By Afishbein
There are virtually no good textbooks for undergraduate and graduate students who need a broad introduction to the tools used by junior investment bankers (the ones that do the work), desk analysts, distressed securities investors and hedge fund traders. This book, newly updated, provides one. It is not a lot of theory. Rather it provides realistic descriptions of the techniques used everyday by professionals. And it is all in one place.

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