Applied Equity Analysis and Portfolio Management, + Online Video Cours - Tools to Analyze and Manage Your Stock Portfolio

A "hands-on" guide to applied equity analysis and portfolio management
 
From asset allocation to modeling the intrinsic value of a stock, Applied Equity Analysis and Portfolio Management + Online Video Course offers readers a solid foundation in the practice of fundamental analysis using the same tools and techniques as professional investors. Filled with real-world illustrations and hands-on applications, Professor Weigand's learning system takes a rigorous, empirical approach to topics such as analyzing the macro-finance environment, sector rotation, financial analysis and valuation, assessing a company's competitive position, and reporting the performance of a stock portfolio.
 
Unlike typical books on this subject--which feature chapters to read and exercises to complete--this resource allows readers to actively participate in the learning experience by completing writing exercises and manipulating interactive spreadsheets that illustrate the principles being taught. The learning system also features instructional videos that demonstrate how to use the spreadsheet models and excerpts from the author's blog, which are used to depict additional examples of the analysis process. Along the way, it skillfully outlines an effective approach to creating and interpreting outputs typically associated with a top-down money management shop -- including a macroeconomic forecasting newsletter, detailed stock research reports, and a portfolio performance attribution analysis.
* Covers topics including active and passive money management, fundamental analysis and portfolio attribution analysis
* Companion streaming videos show how to use free online data to create yourown analyses of key economic indicators, individual stocks, and stock portfolios
* A valuable resource for universities who have applied equity analysis and portfolio management courses
 
Practical and up-to-date, the book is an excellent resource for those with a need for practical investment expertise.

List of contents

Preface ix
 
Acknowledgments xv
 
Chapter 1 Perspectives on Active and Passive Money Management 1
 
Terminology: Investors, Investment Vehicles, Risk, and Return 1
 
The Top-Down Fundamental Analysis Process 3
 
The Record of Professional Money Managers 8
 
Market Efficiency, Behavioral Finance, and Adaptive Expectations 10
 
Additional Perspectives on Investing 18
 
Professional Investment Policy Statements 26
 
Summary 30
 
Questions 30
 
Answers to Selected Questions 32
 
References 33
 
Notes 34
 
Chapter 2 Analyzing the Macro-Finance Environment 35
 
Economic Analysis: The First Step of a Top-Down Fundamental Process 35
 
Data Considerations: Nominal and Real-Time Series 41
 
National Income, Corporate Profits, and Job Creation 41
 
Leading Economic Indicators 43
 
Coincident Economic Indicators 54
 
Lagging Economic Indicators 58
 
Supplemental Economic Indicators 64
 
Summary 67
 
Questions 67
 
References 69
 
Notes 69
 
Chapter 3 Valuation, Expected Returns, and the Dividend Discount Model 71
 
Finance Principle 1: Valuation 71
 
Finance Principle 2: Value and Expected Returns 77
 
Summary 88
 
Questions and Problems 88
 
Answers to Selected Questions and Problems 93
 
Reference 96
 
Note 96
 
Chapter 4 Historical Performance Analysis 97
 
Getting Started 98
 
Historical Stock Returns 100
 
Growth in Revenues, Profits, and Dividends 101
 
Gross, Operating, and Net Profit Margins 108
 
Relative Valuation 111
 
Liquidity and Debt 115
 
Profitability: ROA and ROE 118
 
NOPAT, Total Invested Capital, Free Cash Flow, and ROIC 122
 
Value Creation: Cost of Capital, EVA, MVA, and Intrinsic Value 127
 
Using Diffusion Indexes to Summarize Performance Analysis 134
 
Summary: Historical Performance Analysis 136
 
Appendix: United Technologies' Financial Statement Highlights, 2009-2012 136
 
Questions 138
 
Answers to Selected Questions 139
 
References 142
 
Notes 142
 
Chapter 5 Financial Statement Forecasting, Financial Analysis, and Valuation 143
 
The Income Statement Forecast Worksheet 144
 
The Percent-of-Sales Forecasting Method 144
 
Forecasting MCD's Income Statement 145
 
Forecasting MCD's Balance Sheet 153
 
Pro Forma Analysis: MCD 159
 
Intrinsic Value Modeling 164
 
Financial Fitness and Probability of Bankruptcy Scorecards 170
 
Summary 171
 
Case Study 5.1: Two Perspectives on Valuation Analysis: The Curious
 
Case of Amazon, Inc. 172
 
Questions 175
 
References 208
 
Notes 208
 
Chapter 6 Analyzing Company Strategy and Identifying Catalysts 209
 
Sources of Information 212
 
Unique Capabilities Lead to Sustainable Competitive Advantage 212
 
Getting Started: Analyzing Strategy and Competitive Advantage 216
 
Porter's Five Forces Model 223
 
SWOT Analysis 229
 
Catalysts 232
 
Summary 232
 
Questions 233
 
Answers to Selected Questions 233
 
References 234
 
Chapter 7 Portfolio Risk and Performance Attribution 235
 
Foundations: Risk and Expected Return 236
 
Statistical Representations of Macroeconomic and Firm-Specific Risk 240
 
Extending the Mean-Variance Framework: Beta 249
 
Performance Attribution: Sector Weights, Dividend Yield, Beta, and St

About the author

ROBERT A. WEIGAND, PHD, is Professor of Finance and Brenneman Professor of Business Strategy at Washburn University in Topeka, Kansas. Previously, he was a faculty member at Texas A&M University, the University of Colorado, and the University of South Florida. Dr. Weigand is the author of over 40 scholarly articles and book chapters. His research has supported various innovations in the field of asset management, including Russell Investment's CrossVol(TM) Volatility Indexes. He earned a PhD in financial economics from the University of Arizona in 1993.

Summary

From asset allocation to selecting investments in a global market, Applied Equity Analysis and Portfolio Management offers readers a solid foundation in the field of finance and presents the same tools used extensively by professionals, organizations, and academic institutions.

Product details

• Authors: Weigand, Ra Weigand, Robert A Weigand, Robert A. Weigand, Weigand Robert A.
• Publisher: Wiley, John and Sons Ltd
• Languages: English
• Product format: Paperback / Softback
• Released: 18.03.2014
• EAN: 9781118630914
• ISBN: 978-1-118-63091-4
• No. of pages: 336
• Series: Wiley Finance; Wiley Finance Editions; The Wiley Finance Series; Wiley Finance; Wiley Finance Editions; The Wiley Finance Series
• Subjects: Social sciences, law, business > Business > Business administration; Kapitalanlage, Business & Economics / Investments & Securities / General, Business / Economics / Finance, Finance & Investments, Finanz- u. Anlagewesen, Kapitalanlagen u. Wertpapiere, Investments & Securities