Instead of focusing on the short term--earnings per share, price-earnings multiples--Rappaport (Creating Shareholder Value), formerly a professor at Northwestern's Kellogg School of Management, and Mauboussin, chief investment strategist at Credit Suisse First Boston, recommend "expectations investing," which "starts with the current stock price and uses the discounted cash-flow model to `read' what the market implies about a company's future performance." They discuss sample companies (Gateway), historical patterns, competitive strategies and share value. Though they expertly simplify a complex topic, beginners may find the book overly technical. However, the authors' credentials, a national interview campaign and author appearances should attract deserved attention. Tables.
Copyright 2001 Cahners Business Information, Inc.
Offers a more practical and effective alternative for identifying value-price gaps--the key to superior returns.
Teaches how to value stocks in the new economy, interpret current prices, and determine whether the company's managers are on track.
Practical and teachable, like The Balanced Scorecard.
Introduces a unique Shareholder Value Added (SVA) roadmap for tracing the process of value creation from the basic economic forces that affect a company's resulting value drivers.
I haven't read the book but I saw an unintentionally funny quote on the book jacket. Amongst other people praising the book and urging you to buy it, there is a quote from one... Read morePublished on Sept. 2 2002
I used to always wonder how do investment analysts evaluate stocks.Buffett never beleived in P/E nor P/S or P/CF. Read morePublished on July 9 2002
totally agree with one of the reviewers that this book hasn't made valuation any easier, or more accurate, it's good in its review of the various value drivers and competitive... Read morePublished on April 3 2002 by Seeker
This book starts off on the premise that 1) companies can manipulate eps but not cashflow and 2) rather than engage in all sorts of scenario analysis, look at the securities price... Read morePublished on Feb. 19 2002
Mauboussin was far and away the best professor I had at Columbia Business School. His security analysis course is consistently rated tops by second year students at CBS and I... Read morePublished on Feb. 4 2002 by Michael Benevento
This book is a must read for anyone that invests in the market and wants to make consistent gains in his/her portfolio. Read morePublished on Jan. 23 2002 by Sam
Rappaport and Mauboussin expertly utilize the often misapplied DCF model to identify and analyze market assumptions that determine stock price. Read morePublished on Jan. 20 2002 by Elizabeth Spiers
The book looks very much like Rappaports earlier book Creating Shareholder Value, but from a different angle. The bottom line remains the same. Read morePublished on Jan. 13 2002 by D. Simons