At this point, many topics have been presented. While all the topics are interrelated, it may not have always felt that way. This chapter integrates all the previous discussion points and leads to valuing a company, creating shareholder value, and enhancing the value of the firm.

Valuation of a firm begins with a solid understanding of the company’s strategic goals and objectives, as well as its day-to-day business practices. To judge the financial success of a firm and to develop a reasonable value for that firm or a share of that firm’s stock, it is necessary to know how to read its financial statements (Chapter 2), analyze those statements (Chapter 3), and project the firm’s ...

Get The Essentials of Financial Analysis now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.