My Favorite Text for Finance!
359190
I used this book for several graduate courses. I have a number of different Finance texts and I often come back to this one as a reference after several years of owning it. It clearly defines concepts and calculations. I would say that it is an intermediate level text: you need a basic knowledge of algebra, but not advanced calculus.
4737632
This book explains so much about finance I did not really understand while working as a researcher in a large corporation. The most important thing I have learned so far, is that the mathematics is quite simple, but that the terminology is very obtuse, with many different terms used for the same function depending upon context. This book patiently takes you through all this, though it does require patience on the readers part also. "Anecdotes" interspersed in the text brighten it up enormously. I would recommend it to anyone who wants to understand what makes their finance colleagues tick.
4329211
Penman's book is rapidly becoming THE textbook for MBA courses in fundamental analysis and equity valuation, and rightly so. The approach he suggests just plain makes good economic sense, and he is able to offer a method that allows the users of financial statements to get to the core of how economic profits are created, and perhaps most importantly, how those profits should be valued.

In the end, of course, no one has all of the answers -- a major weakness in the book, in my opinion, is a less-than-complete discussion of the issues surrounding the determination of the elusive "cost of operations". He rather vaguely suggests the application of a basic statistical method that I won't go into here (read the book and see what you think!), but the discussion is a little thin and will hopefully be beefed up in future editions. But, hey, like I said: no one has really cracked the case on this perennial grey area, and Penman's ideas are as good as any I've encountered.

Again, though, this book provides the reader with some rather powerful tools with which to tackle financial statements. My only regret is that I bought the softcover international edition to save some cash -- I can honestly say that this is the only textbook I've ever purchased where I wished I had picked up the hardcover edition. Don't make the same mistake. This is a text you will want to refer to time and time again, so just go ahead and buy the real, hardcover deal. I know I'll be picking up my own hardcover copy once the next edition is released.

Professor Penman, if you happen to read the reviews here, thanks for the effort and please keep striving to improve on this landmark text!!
1671367
I just used this text for the first time while teaching an undergraduate course in QM. It is now my favorite QM book and I plan to use it from now on.

The main attraction for me was the large number of worked examples and the practical leanings of many of the calculations. In both of these traits it is better than Griffiths' text, which is what I had used most recently.  However, I soon became a fan of the text style as well: Zetilli is very readable and straightforward in his presentation and covers all of the necessary historical and mathematical background (which may be shortened or skipped if the class has the math skills already).  While there were some typos, most should be caught by the instructor (or perhaps a sharp student!).

Other books I have used simply jump right into the Schrodinger equation or relegate some of the important calculations to the homework with no comparable examples in the text.  This can work if the instructor is willing to go "off-book" frequently to fill in the gaps but can be frustrating to a student working on his or her own.  Each chapter has numerous "examples" in the text, with end-of-chapter "problems" (with complete solutions) and "exercises" (unsolved, though there is an instructor's solutions manual). This makes it much easier for students to find a model for the type of problem they are learning how to solve.  In fact, I often listed helpful "problems" every time I assigned "exercises," which my students greatly appreciated.

I strongly feel that one skill that faculty should cultivate in their students is the ability to read - really read - a text book on their own and learn from it.  For an undergraduate course this is a self-contained book that will serve as a valuable reference for self-study.  It is very readable and I expect that the students will be happy to have it nearby when they take QM in grad school.
600632
I found this textbook very interesting compared to others in the past. It makes finance easy to understand for those without a strong financial background
2694236
The Quest for Value is the best modern financial text available today and certainly the best written since Benjamin Graham's Security Analysis. I teach the Quest for Value to graduate students at the University of St.  Thomas in Minneapolis and manage FalkerInvestments, an investment firm  specializing in EVA investments.  The Quest  for Value is our financial bible.
A few tips in reading this excellent  book.  Read the Preface by Joel Stern and Chapter 1, the introduction; then  skip to Chapter 12 which deals with the best discussion of the concepts of  cost of capital available today.  Then read chapters 2 and 3 and select the  following chapters based on what interests you.
This book appeals to  business readers at all levels, so those with less experience should not  get bogged down in some of the more sophisticated areas of the book.  In  other words, it can be read selectively for content.
1238834
An INSEAD MBA, I have spent quite a while researching the Institute's  library and looking for a good-quality book on valuations and financial  modeling. I have found Simon Benninga's book is an absolutely wonderful  source of information on financial mathematics, portfolio theory, corporate  finance, and related Excel applications applied in modeling and  forecasting. Having paged through many a book on the subject, I can  honestly state that this one is, probably, the best available in the  market.
Hope my comment was helpful. Regards, Luria.
1724104
I finished a BS in economics and specialized in econometrics. This is one of my favorites texts that I read. A lot of professors will churn out mathematical equations and theory. As someone that relies more on intuition and big picture, this text was perfect for making sense of that the professor was saying. I strongly suggest doing a stats project with this text as a companion then just reading the book. You will learn a ton.
805058
As the student of the Msc in Mathematical Finance programme organized by the University of Oxford, I found that this book is indeed an excellent reference. Paul, as the founder of the captioned programme, write this book as a completion collection on all-you-have-to-know in quantitative finance. Most of the books for this topics are really expensive and Paul's work summarizes all the essential as well as the recent theories. For the 'Quants' who could able to derive models by themselves, or the semi-professionals in derivatives finance, it serves as 'budget' quick reference. As a cult writer, Paul's presentation is very funny indeed. All in all, it is a must buy for all students in this subject.
1389565
I utilized this text first in an introductory climate science course; it was fabulous, accessible, detailed, and meshed well with everything my professor was lecturing about. Furthermore, in the many years since I first began such learning, I've returned to this text time and time again to refer its clear, easy to find charts, illustrations and definitions. I've used it for probably three or four different courses, even though it was only one professor who asked me to buy it.
1135789
This is an excellent financial resource for the seasoned professional or enthusiastic student. The book is the first of its kind to address finance and investing from the point of view of the trader.
It widely known that improper implementation of an investment decision can negate much of a manager's anticipated alpha, but how exactly should managers examine the set of potential implementation schemes? The solution to this question is the primary focus of Optimal Trading Strategies. The authors provide a very thorough investigation of transaction costs (e.g. when, where, and why they arise) and continue with an easy-to-understand analytical process to estimate, manage, and control those costs. The authors' approach to developing these "optimal trading strategies" also turns out to be the basis for achieving "best execution." The net result to managers is higher returns. I highly recommend this reference for anyone interested in understanding all aspects of finance and investment theory, and it makes a wonderful complement to graduate level texts.
3099827
I hate buying textbooks for class, but this is the one textbook that i'm going to keep after class. It is more like a handbook as it contains an incredible amount of useful information on valuation. WACC, ROIC, EP, DCF it is all here the list could go on and on and ..... The later chapters in this book are more useful than the beginning chapters for those who are established in the field. This book is considered the Bible of Valuation, it really covers just about everything.
1345001
I will strongly recommend this book to anyone planning to study advanced corporate finance. This book is more advanced than the classic text on Principles of Corporate Finance by Brealey & Myers. If you are specializing in Finance and want to know more than what is discussed in the standard textbooks, or if you want to know the derivation of most of the results in Finance or if you want to do PhD in Finance and want a book that will lay a very strong foundation for you, then this is the book.

This is a must-have book for all MBA (Finance)and PhD students and Finance professors.
3176683
Perfect for my masters class. The book breaks things down well for those that may have a hard time. Pair this book with the HP 10bII+ Financial Calculator (NW239AA) and you'll be on your way! Cheers!
4709880
I used this text for my MBA (Finance) and CMA preparation, and I found it full of extensive knowledge which not only train beginners but also add value to the knowledge of experts. I wholeheartedly admit that this (especially alternate edition) is comprehensive text covering common lexicon, mechanics of financial systems, background of theoretical concepts and mathematical modelings, risk analysis & measurement, and a lot more than that. I also bought another book&nbsp;<a data-hook="product-link-linked" class="a-link-normal" href="/Principles-of-Corporate-Finance-with-S-P-bind-in-card/dp/0073368695/ref=cm_cr_arp_d_rvw_txt?ie=UTF8">Principles of Corporate Finance with S&P bind-in card</a>&nbsp;by Myers and Brealey and didn't find any helpful as this one and&nbsp;<a data-hook="product-link-linked" class="a-link-normal" href="/Fundamentals-of-Corporate-Finance-Alternate-Edition/dp/0077246128/ref=cm_cr_arp_d_rvw_txt?ie=UTF8">Fundamentals of Corporate Finance Alternate Edition</a>by Ross, Westerfield, and Jaffe.

Thank you very much.
3043012
I purchased this book close to ten years ago before I finished college. I took a look at the table of contents and felt like crying because I didn't understand anything. Then I spent the next ten years working on my technical skills in finance, accounting, statistics, and corporate finance. I took the book off my bookshelf, dusted off the dust, and looked at the table of contents again. I am proud to say that after mastering the skills and working towards completing the CFA charter (currently Level 3 candidate), this book is amazing. The amazing thing about this book is that it teaches us how to calculate every single thing that has always been given to us in the textbooks as a given assumption. For instance, everyone knows the theory of efficient portfolios. In the CFA curriculum I spent lots of time studying all aspects of the theory. However, in every textbook I ever read all the real world assumptions were given to us as readers. In this book, the author teaches us how to calculate every data point. For example, relating to the efficient frontier, one would need to have a variance-covariance matrix. In all my years in the CFA and undegrad studies mastering corporate finance, the variance covariance matrix was always a given. This is the only book that actually taught me how to calculate every data point needed to run an entire optimization portfolio as a student, and on my own portfolio of stocks. The most abstract concepts in finance that undergraduate students take for granted in the textbook as given are all shown to us how to calculate. It teaches option pricing, linear programming for bond immunization strategies (which is extremely technical, advanced, and the realm of fixed income portfolio management for big insurance companies), basics of VBA, absolutely anything and everything that only the most passionate person would care to know how to calculate. I truly feel that I could literally raise a small fund with a very broad mandate, take the money, and just create different investment strategies by going through this book page by page. The author of this book is one of the highly regarded professors at Wharton Business School. I envy those lucky students that get to actually take his lecture and visit him during office hours. Finally, although I have read this entire book, I went ahead and purchased the new 3rd edition as well. I am giving this book as a gift to a very mathematical investor friend so he can enjoy its contents too in his investment strategies. And I am writing a new review for the 3rd edition as well. My review is but one of close to 200 positive reviews for this amazing book.
535108
I have just begun teaching a summer section of calculus 1 out of this text, and so far I am quite thrilled with the product.  I plan to write a more formal review at the end of the semester, but here are a few brief reasons for my high rating:

1.  This book dispenses of all the cutesy pictures and graphics that have begun to pop up in the 8th+ editions of some of the more well-known calculus texts.  Why would I want to insult my students with childish pictures of "people in the real-world" in the margins?

2.  The prose is really well-written.  For the first time, I am tackling epsilon-delta proofs with my calculus 1 students, because I think Taalman and Kohn do such an excellent job explaining them.

3.  The problem sets are rich and dense.  Each section's problem set is broken down into multiple sections:  Thinking Back, Concepts (Exceptional!), Skills, Applications, Proofs (Awesome!), and Thinking Forward.

More to come at the end of the semester...