# Accounting for Value - Hardcover

by **Stephen Penman** (Author)

_Accounting for Value_ teaches investors and analysts how to handle accounting in evaluating equity investments. The book's novel approach shows that valuation and accounting are much the same: valuation is actually a matter of accounting for value.

Laying aside many of the tools of modern finance--the cost-of-capital, the CAPM, and discounted cash flow analysis--Stephen Penman returns to the common-sense principles that have long guided fundamental investing: price is what you pay but value is what you get; the risk in investing is the risk of paying too much; anchor on what you know rather than speculation; and beware of paying too much for speculative growth. Penman puts these ideas in touch with the quantification supplied by accounting, producing practical tools for the intelligent investor.

Accounting for value provides protection from paying too much for a stock and clues the investor in to the likely return from buying growth. Strikingly, the analysis finesses the need to calculate a "cost-of-capital," which often frustrates the application of modern valuation techniques. Accounting for value recasts "value" versus "growth" investing and explains such curiosities as why earnings-to-price and book-to-price ratios predict stock returns. By the end of the book, Penman has the intelligent investor thinking like an intelligent accountant, better equipped to handle the bubbles and crashes of our time. For accounting regulators, Penman also prescribes a formula for intelligent accounting reform, engaging with such controversial issues as fair value accounting.

### Author Biography

Stephen Penman is George O. May Professor of Accounting and Morgan Stanley Research Scholar at the Columbia Business School. He is the author of _Financial Statement Analysis and Security Valuation_, for which he received a Wildman Medal Award, and an editor of the _Review of Accounting Studies_.

**Number of Pages:** 264

**Dimensions:** 0.87 x 9.24 x 6.36 IN

**Illustrated:** Yes

**Publication Date:** December 30, 2010

## Details

- **Price:** 44.95 USD
- **Vendor:** Books by splitShops
- **Type:** Books
- **Tags:** Books by splitShops, Shopify Collective

## Variants

| Variant | Price | Available |
|---------|-------|-----------|
| Default Title | 44.95 USD | In stock |

## Images

- Accounting for Value - Hardcover

---

> Source: [Smart supply deals](https://smartsupplydeals.com/products/accounting-for-value-hardcover)
> Updated: 2026-07-21