Accounting for Value

For medium term and long term investors, the book Accounting for Value by Stephen Penman may be just the book you are looking for. The book is based on the premise that valuation of stocks is actually a matter of accounting for value.

Penman covers how to evaluate investments, stocks in particular, by using practical accounting tools. The primary goal is to avoid the risk of paying too much. The investor can avoid speculation by accounting for value. The book helps investors grasp the comprehension of accounting in valuation.

For a practical book that will help you understand the use of accounting in understanding stock valuation, Accounting for Value is the resource you are looking for you.