1. To cover the different approaches that can be taken to value assets
2. To provide a framework to decide which approach is most appropriate for valuing a particular asset
3. To provide examples of how particular assets are valued
4. To make each approach self-contained, although not entirely independent of one another

One the whole, the author succeeds in his attempt to demonstrate how someone can approach asset valuation. For the most part the author approaches the valuation process from the foundation of determining the present value of all future cash flows from an asset. It is the sum of the present values of the expected future cash flows that determines the asset's worth.

While the author successfully applies the principles of asset valuation in the book, a number of shortcomings make this book less than ideal for use in a course on security analysis. After introducing the reader to the approaches he plans to cover in the book, the author launches into a discussion of the relationship between the risks of owning an asset and the returns expected from the asset in chapter 3. This chapter includes an explanation of the Capital Asset Pricing Model, one of the foundations of modern finance theory. Such a rapid exposure to modern finance may leave readers wondering if they are in over their heads. Normally, such discussions are left for a later chapter after a discussion of financial statements and ratio analysis.

Furthermore, the author tackles the estimation of discount rates without first providing us with a discussion of the financial instruments that are sold in the marketplace whose costs of financing typically compose the discount rate.

Still, the book is worthwhile to read for those who are already familiar with the concepts of finance and the time value of money and who want to learn more about how assets are valued. The book also can be used in an upper-level finance class devoted to asset valuation.