PPT-Common Stock Valuation

chapter 10 Present value approach Capitalization of expected income Intrinsic value based on the discounted value of the expected stream of cash flows Multiple of earnings approach Valuation relative to a financial performance measure. Presenter. Venue. Date. Discounted Cash Flow Models. 2. Choice of Discounted Cash Flow Models. 3. Valuing Common Stock Using . a . Multi-period . DDM. 4. Example: Valuing Common Stock Using . a . Multperiod. Riley J. Busenlener, CPA/ABV, ASA, JD. The Report. Cover of the report. Math. Signatories. Standards. Assumptions. The Cover of the Repot. Subject Entity. Valuation Date. Standard of Value. Appraisers. Jiajun. Chen. 364657. Value the . cash flows . or . earnings. . under new ownership. Value the . dividends. . under the existing management. Value the . assets. MAX. MIN. Introduction. Ask: if stock market is . Investment decision process. Determine the required rate of return. Evaluate the investment to determine if its market price is consistent with your required rate of return. Estimate the value of the security based on its expected cash flows and your required rate of return. MBA Finance 571. Week 2. Stock Valuation and Analysis. 2. Stock Valuation and Analysis. 3. Stock Valuation and Analysis. 4. Stock Valuation and Analysis. 5. 5. The student will find answers for:. a. Enterprise Value. Stock Market Equilibrium. 2. Topics in Chapter. Features of common stock. Valuing common stock. Preferred stock. Stock market equilibrium. Efficient markets hypothesis. Implications of market efficiency for financial decisions. Definition. : Stocks are . A type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings.. 2. . Types. : . Common Stock. (usually entitles the owner to vote at shareholders' meetings and to receive dividends). . Alexander Motola, CFA. Alexander Motola, 2013. 1. What is “Valuation”?. It is NOT the stock price. It is NOT the market capitalization. Is a $50 stock expensive?. What if it was $25 3 months ago?. Zagg (NASDAQ: ZAGG) April 3, 2014 1 Jason Chan Michael DeRenzo Rodrigo Serna Agenda Introduction Company Overview Macroeconomic Outlook Relevant Stock Market Prospects Financial Analysis Valuation Notes Compiled by:. Dr. RUCHIKA KAURA. Assistant Professor. Department of Commerce. INVESTING IN STOCK MARKETS. Important Questions. What do you mean by ‘valuation of stock’? What are the objectives of stock valuation?. – ANALYSIS & VALUATION. 1. Meaning of Common Stock:. A Stock is a share in the ownership of a company. Stock represents a claim on the company’s assets and earnings. . Holding a company’s stock means that we are one of the many owners of a company and as such we have a claim to everything the company owns. . Cautionary Note. Stock valuation is often a topic dedicated to one or more 3-credit elective courses.. FINC852 at UD is a stock valuation and portfolio theory course.. Think of this chapter as a “scratching the surface” of the topic, or as the “tip of the iceberg.”. Cash Flow Models of Equity Valuation.. Dividend Discount Models. Accrual Discount Models . Determining the Value Drivers. Cases in Valuation Model Analysis. Reading: SAIS, sec. 8.1, 8.2 and 8.3 and . Dr. Lakshmi Kalyanaraman. description of equity or stock securities and the markets in which they trade. . description of the different types of corporate stock.. how they are sold to the public and then traded; first in primary markets and then in...