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| Preface | |
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| Getting Started | |
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| A Day in the Life | |
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| Talking the Talk | |
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| Doing the Work | |
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| Taking a Position | |
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| Equity Analysis and Objectivity | |
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| Notes | |
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| Fundamentals of Equity Valuation | |
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| GAAP-Based Financial Accounting | |
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| The Problems with GAPP Accounting | |
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| The Primacy of Return on Capital: High Times at Consolidated Imports Ltd. | |
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| Competitive Equilibrium: Troubles for Consolidated Imports Ltd. | |
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| Growth and Value: Hope Rises from the Ashes at Consolidated Imports Ltd. | |
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| Transitory Earnings: An Unexpected 10 Percent Price Increase at Consolidated Imports Ltd. | |
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| The Equivalence of Growth and Investment | |
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| Growth in Perpetuity | |
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| Notes | |
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| Strategy and Competition I: The Firm's External Environment | |
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| Good Companies = Good Stocks? | |
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| Market Efficiency and Competitive Impediments | |
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| SWOT, Nature, and Nurture | |
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| The Generic Opportunities: Emerging to Mature Industries | |
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| Beyond Porter | |
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| Notes | |
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| Strategy and Competition II: The Firm's Internal Competitive Resources | |
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| The Porter Approach: Cost Leadership, Differentiation, and Focus | |
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| The Resource View: What about Internal Resources? | |
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| Sustaining Resource Heterogeneity | |
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| Operational Effectiveness Is Not Strategy | |
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| The VRIO System | |
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| A Dynamic View: Renewal and Erosion of Advantage | |
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| Notes | |
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| Fundamentals of Stock Behavior | |
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| A Thought Experiment: The Haugen Methodology | |
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| The Evidence Suggests Market Bias Is Real, Maybe | |
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| Implications for Investment Styles | |
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| Efficient and Inefficient Markets | |
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| If You're So Smart, Why Aren't You Rich? | |
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| Maybe Keynes Was Right | |
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| Notes | |
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| The Basic Tools | |
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| Reading a Financial Statement: The Accuracy, Sustainability, and Predictability of Financial Information | |
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| Financial Misreporting: The Seven Shenanigans | |
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| Facing Reality: Earnings Surprises and Analytic Inertia | |
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| Predicting performance: Nonrecurring Items | |
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| An NRI Analysis of Gateway | |
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| Notes | |
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| Financial Statements | |
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| Gateway Financial Statements | |
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| Reading a Financial Statement: The Composition of Returns | |
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| The Focus of Ratio Analysis Is ROE | |
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| Margins Reveal Operational Decisions | |
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| Turnovers Describe Investment Decisions | |
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| Leverage Is the Return Amplifier | |
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| Some Other Ratio Issues | |
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| Connecting Strategy to Value | |
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| The Composition of Returns | |
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| Gateway Time Series Analysis | |
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| Dell Computer in Its Industry Context | |
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| Direct Sellers Have the Edge | |
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| Notes | |
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| Comparative Financial Analysis: Personal Computer Industry | |
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| Reading a Financial Statement: Early-Stage Companies and Investment Capacity | |
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| Stages of Company Development | |
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| Startup: The Company Defines Itself | |
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| Emerging Growth: The Battle Is Joined | |
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| Notes | |
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| Reading a Financial Statement: Later-Stage Companies and the Transition to Maturity | |
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| Established Growth: Past the Shakeout | |
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| The Transition to Maturity: Maximum Analytic Risk | |
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| Mature Companies: The Old--But Good--Economy | |
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| Declining Companies: Demand Shrinks | |
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| Notes | |
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| Economic Value Added: An Alternative to Traditional Analysis Techniques | |
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| The Foundations of EVA | |
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| The Firm As a Savings Account | |
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| NOPAT Is the Pool of Profits | |
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| Gateway: EVA in Practice | |
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| Notes | |
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| Gateway's Cost of Capital | |
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| Cost of Equity | |
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| Weighted-Average Cost of Capital | |
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| Financial Models | |
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| Financial Modeling: Base Case Assumptions and Model Design | |
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| Consistency and Continuity in Financial Models | |
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| Those Pesky Quarterly Earnings Forecasts | |
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| The Laws of Economics and Other Disappointments | |
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| Financial Model Design: Tricks and Traps | |
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| Starting a Financial Model: Dell Computer | |
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| A Partial Reality Check | |
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| Notes | |
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| Dell Computer Corporation Consolidated Statement of Income | |
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| Financial Modeling: The Income Statement and Balance Sheet | |
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| The Income Statement: The Equity Analyst's Lodestone | |
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| The Balance Sheet: Overcoming Circularity | |
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| Closing the Balance Sheet: Avoiding Circularity | |
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| Alternative Balance Sheet Closers | |
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| Other Financial Model Features | |
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| Notes | |
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| Financial Modeling: The Statement of Cash Flows | |
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| The Origins of the SOCF | |
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| The Direct SOCF Format | |
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| Total Cash Flow Format | |
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| Notes | |
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| Equity Valuation | |
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| Valuation: Foundations and Fundamentals | |
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| Combat Finance | |
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| Accounting Is Sometimes Annoying, But It Is Not Fatally Flawed | |
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| Discounted-Cash-Flow Valuation | |
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| Terminal Values Are a Big Deal | |
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| Dell Computer | |
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| Notes | |
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| Combat Finance: Relative Methods and Companion Variable Models | |
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| The Theory, As Usual | |
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| The Computer Industry | |
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| Other Industry Valuation Models | |
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| Cheap Stocks | |
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| Companion Variables and Target Prices | |
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| Times Series Models | |
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| Notes | |
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| Hybrid Valuation Techniques | |
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| An Equity Reformation | |
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| Self-Correcting Valuations | |
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| The Growth Content of Stock Prices | |
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| The Complete Specification of Valuation Multiples | |
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| Valuation Multiples and Company Performance | |
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| Notes | |
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| The Quirky Price/Earnings Ratio | |
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| The Drivers of the P/E Multiple | |
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| Gordon Growth and the P/E Ratio | |
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| The P/E-to-Growth Ratio: Another Casualty | |
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| P/E and the Franchise Factor | |
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| Notes | |
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| Valuation of Speculative Stocks | |
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| Reverse Engineering Speculative Stocks | |
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| Amazon.com | |
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| The Calculation | |
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| Dell Computer | |
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| Relative Valuation Techniques Falter | |
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| Another Rule of Thumb: Hope Springs Eternal | |
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| High Growth Stocks: The Siegel Calculator | |
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| Notes | |
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| Equity Analysis and Business Combinations | |
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| The Unfortunate Value Story | |
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| Deals Happen Anyway | |
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| Earnings Accretion and Value Addition | |
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| Notes | |
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| Getting It Down on Paper | |
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| Financial Writing: Don't Bury the Lead | |
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| The Structure of an Analytic Report | |
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| Giving the Reader a Break | |
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| Style and Its Abuse | |
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| The Chained-Logic Trap | |
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| Notes | |
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| Bibliography | |
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| Index | |