Why Debt & Equity Investors Look at Financial Statements Differently — And Why You Should Care

In this 7-page Working Paper, You'll Discover...

  • Why equity investors and credit investors can come up with completely different conclusions for a company -- and how not understanding the view of the other investor can lose you money
  • Why equity investors need to care about debt maturity schedules in forecasting future expenses when modelling (except for the times they don’t)
  • Why it is essential to make adjustments for the misrepresentations from traditional accounting statements to get comparability across peers for valuation and performance benchmarking analysis... and why making these adjustments can also further distort your investor conclusions

Armed with this knowledge, you'll be able to better understand and adjust your financial modeling to avoid portfolio torpedoes and identify unique investing opportunities that similar investors may be missing.

Click on the orange "GET MY COPY" button to get instant access to your copy of the working paper.

 

 

Professor Joel Litman is Chief Investment Strategist at Valens Research. He is Professor of Strategy & Valuation at Hult University, one of the highest ranking international MBA and Exec MBA programs according to FT, Economist, and Bloomberg Businessweek. Litman also serves as Chairman/CEO of Valens Securities and is a member of the Board of Directors of COL Financial Group (PSE:COL).

Litman has appeared on CNBC, has been quoted in Barron’s and Institutional Investor, and published in Harvard Business Review. He co-authored the highly-acclaimed book, DRIVEN: Business Strategy, Human Actions, and the Creation of Wealth. Litman has
taught or guest-lectured at Harvard Business School, Wharton, and LBS as well as for CalPERs, Fidelity, Credit Suisse, among others, and CFA and CPA/CA Societies around the world.

 

Joel Litman

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About the Authors

© 2016 Valens Research. All Rights Reserved.

Barry Jay Epstein, Ph.D., CPA, is a financial reporting expert, author, and litigation consultant with over 40 years experience. Dr. Epstein has done substantial work for the Securities and Exchange Commission (SEC), the Department of Justice and other federal and state agencies. He is highly regarded as an expert in accounting malpractice, financial reporting and securities fraud, and forensic accounting. Epstein is a Certified Public Accountant (CPA) and holds a B.S.C. from DePaul University in accounting and finance, an M.B.A. from University of Chicago in Accounting, Economics and Behavioral Sciences, and a Ph.D. from University of Pittsburgh – Information Systems, Statistical Decision Theory and Finance.

Barry Jay Epstein

“...a valuable tool for investment managers and individual investors to identify companies whose shares have a high probability of producing long run returns...”

—Al Heron

Financial Advisor and Ombudsman at The World Bank, Treasurer of Esso Standard Eastern Philippines, Projects Manager of Infrastructure at Asian Development Bank, and Former CEO of International Carriers, Inc.

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“...what we as educators and thought leaders should embed in our curricula and teachings in business schools throughout our education programs...”

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Ph.D., Chairman of the Board of Directors of The Association to Advance Collegiate Schools of Business (AACSB International), and Dean at George L. Argyros School of Business and Economics, Chapman University