Common stock valuation

Fundamental Analysis ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

[object Object],[object Object],[object Object],Present Value Approach

Required Inputs ,[object Object],[object Object],[object Object],[object Object],[object Object]

Required Inputs ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

[object Object],Dividend Discount Model

Dividend Discount Model ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

[object Object],[object Object],[object Object],Dividend Discount Model

[object Object],[object Object],[object Object],[object Object],Dividend Discount Model

Dividend Discount Model ,[object Object],[object Object],[object Object],[object Object],[object Object]

Dividend Discount Model ,[object Object],[object Object],[object Object]

Example: Valuing equity with growth of 30% for 3 years, then a long-run constant growth of 6% D 0 = 4.00 5.20 6.76 8.788 9.315 4.48 5.02 5.63 59.68 P 3 = 9.315 74.81 = P 0 .10 0 k=16% 1 2 3 4 g = 30% g = 30% g = 30% g = 6%

What About Capital Gains? ,[object Object],[object Object],[object Object],[object Object]

Intrinsic Value ,[object Object],[object Object],[object Object],[object Object]

P/E Ratio or Earnings Multiplier Approach ,[object Object],[object Object],[object Object],[object Object]

[object Object],[object Object],[object Object],P/E Ratio Approach

P/E Ratio Approach ,[object Object],[object Object],[object Object],[object Object]

Understanding the P/E Ratio ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

P/E Ratios and Interest Rates ,[object Object],[object Object],[object Object],[object Object]

Which Approach Is Best? ,[object Object],[object Object],[object Object],[object Object]

Which Approach Is Best? ,[object Object],[object Object],[object Object],[object Object],[object Object]

Other Multiples ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Common stock valuation

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to Common stock valuation

Similar to Common stock valuation (20)

More from Babasab Patil

More from Babasab Patil (20)

Recently uploaded

Recently uploaded (20)

Common stock valuation

Editor's Notes