Table of Contents

Section One
Introduction 1
Chapter 1
What Is Value Investing? 3
Chapter 2
Why Strategic Value Investing? 13
Chapter 3
Barriers to Successful Value Investing 31
Chapter 4
Strategic Selection of Companies: Economic Analysis, Industry Analysis, and Screening 53
Chapter 5
Company Analysis 77

Section Two
Measuring Value 111
Chapter 6
Concepts of Value 113
Chapter 7
Dividend Discount Models 133
Chapter 8
Free Cash Flow Models 153
Chapter 9
Asset-Based Approaches 173
Chapter 10
Residual Income Models 193
Chapter 11
Relative Valuation 205

Section Three
Value Investing Styles and Applications 225
Chapter 12
Variations on a Theme: Value Investing Styles 227
Chapter 13
Choosing the Right Style and Valuation Model 245
Chapter 14
Distressed Investing 265
Chapter 15
Applying Value Investing to the Market 285

Notes 299
Resources 311
Index 318

About the Author

STEPHEN M. HORAN is managing director and co-lead of education activities at CFA Institute. Prior to joining CFA Institute, he was a principal of Alesco Advisors, LLC, and a professor of finance at St. Bonaventure University.
ROBERT R. JOHNSON is professor of finance in the Heider College of Business at Creighton University and also serves as a director of RS Investment Management. Prior to joining the faculty at Creighton, he was deputy CEO of CFA Institute, responsible for all aspects of the CFA program.
THOMAS R. ROBINSON is managing director of the Americas at CFA Institute. He joined CFA Institute as head of educational content in 2007 from the University of Miami, where he was an associate professor of accounting and director of the Master of Professional Accounting Program.