Equity valuation ppt WPFS – 29 November -1 December 2010. FIL 404 ; Keldon Bauer, PhD ; 2 Equity Valuation. Topics like share values, ownership percentage, founders can be discussed with this completely editable Equity Valuation 13 Bodie, Kane, and Marcus Essentials of Investments, 9th Edition. 6. Select the prime factors you want to focus on and develop your strategies. Their claims can not be paid until the claims of all creditors, including both interest and principle payments on debt have been satisfied. Intro to Free Cash Flows • If applied to dividends, the DCF model is the dividend discount model (DDM) from Chapter 2. CA vidhyadhari penujuru Follow. For a simple firm Liabilities + Equities = Debt Capital + Equity Capital + “Non-Capital” Capital = Debt Capital + Equity Capital C = DB + EB. The More videos at https://facpub. Book value is the value of common equity on the balance sheet. A small handbook for everybody's use in The PowerPoint PPT presentation: "Equity Valuation Models" is the property of its rightful owner. 6 Valuation of Equity Shares 3. It provides examples to calculate these measures and explains how During the first month of internship Varsha Bezzam, a student made this absolutely detailed presentation on HUL. Slide 29 : The purpose o the following slide is to provide target company valuation using discounted cash flow method , the provided table hoighlights the net operating losses , free cash flow and total enterprise I. 576 views • 16 slides. This document discusses various equity valuation models used by fundamental analysts to value stocks. Review Paine Webber’s Free Cash Flow Calculation. 3 The P/E Approach to equity valuation 3. Use Equity Valuation (a) for firms which have stable leverage, whether high or not, and (b) if equity (stock) is being valued Use Firm Valuation (a) for firms which have leverage which is too high or too low, and expect to change the leverage over time, because debt payments and issues do not have to be factored in the cash flows and the discount rate (cost of capital) does not 4! Approaches&to&Valuaon&! Intrinsic&valuaon ,&relates&the&value&of&an&assetto&its&intrinsic& characteris=cs:&its&capacity&to&generate&cash&flows&and&the& Equity valuation is a blanket term and is used to refer to all tools and techniques used by investors to find out the true value of a company's equity. Preferred Stock Valuation (Non-callable, Non-convertible Shares). 4. An important thing to understand is when to use equity value and when to use enterprise value. DCF will provide us with the fair valuation of the total firm (Enterprise value). This Chapter 5 Bond and Stock (Equity) Valuation. It is calculated as the purchase price minus the fair value of net assets. It is a framework for analyzing companies and assessing how well they compare to their peers in terms of performance Equity Valuation 13 Market-Based Valuation: Price and Enterprise Value Multiples The candidate should be able to: contrast the method of comparables and the method based on forecasted fundamentals as approaches to using price multiples in valuation and explain economic rationales for each approach calculate and interpret a justified price multiple describe rationales for and Equity Research Report Example. Equity IPO/ FPO Family Separation PPA Portfolio Value of Investments Regulatory Approval Litigation Test of Impairment Buyback of Shares Purchase / Sale of Business Why Valuation? Merger/ Demerger . Role of RBI in the Indian EQUITY ANALYSIS & VALUATION Dr Reddy's ppt • Download as PPTX, PDF • 2 likes • 705 views. 2. Limitations of Book Value 13. Valuation. Wide scope of marketability : equity shares are lower denominations, hence they can be purchased by persons of limited income also. OUTLINE Balance Sheet Valuation Dividend Discount Model Earnings Multiplier Approach Earnings – Price Ratio, Expected Return, and Growth Other Comparative Valuation Ratios Equity Portfolio Management. 10 When DCF Valuation works best ¨ At the risk of stating the obvious, this approach is designed for use for assets (firms) that derive Methods Used for Valuation in Equity Research The following slide displays the equity valuation methods such as balance sheet methods, earning multiple methods and discounted cash flow method. Share buttons are a little bit lower. Financial Services Review, 1999. It is useful to share insightful information on Equity Valuation Models This PPT slide can be easily accessed in standard screen and widescreen aspect ratios. FCFE Approaches to Equity Valuation LOS: Describe, compare, and contrast the FCFF and FCFE approaches to valuation. shekhar sharma Follow. Measuring what firms can return to their stockholders Given what firms are returning to their stockholders in the form of dividends or stock buybacks, how do we decide whether they are returning too much or too Chapter 13 EQUITY VALUATION How to Find Your Bearings. Case. You are valuing Exxon Mobil, using the Enterprise value and equity value may both be used in the valuation or sale of a business but each offers a slightly different view. Valuation of Securities • Important terms associated with Debentures – Face Value: the amount on which the issuer pays interest, and which, most commonly, has to be repaid at the end/ maturity. This is a completely editable PowerPoint presentation and is 3. • Historical costs underestimate economic costs. Layer 1: Base Year fixation. Valuation - Download as a PDF or view online for free. While the current market price is said to reflect all variables (including irrational Improve your presentation delivery using this Brand Equity Valuation Ppt PowerPoint Presentation Complete Deck With Slides. Apply the free cash flow models to equity valuation. LO18-3 Understand the corporate form of organization and the nature of stock. Key Concepts and Skills • Understand how stock prices depend on future dividends and dividend growth • Be able to compute stock prices using the dividend growth model • Understand how corporate directors are elected • Understand how stock markets work • Understand how stock prices are quoted ¤ equity research analysts, whose job it is to follow sectors and make recommendations on the most under and over valued stocks in that sector ¤ equity portfolio managers, who have tobe fully (or close to fully) invested in equities Aswath Damodaran 9. Hit The Right Buttons And Spur On Your Audience. Steps in Valuation Obtaining Information Data analysis & review Discussion with the management of the company Selection of method Conducting sensitivities on Chapter 3Free Cash Flow Valuation. Can have different classes - A, B, etc. 6. Introducing our Equity Valuation PPT. 18 ) Equity Valuation Models . Statement of Cash. The sale price will depend on the buyer’s expected cash flows. It depends on the metric 7 Equity Valuation versus Firm Valuation Value just the equity stake in the business Value the entire business, which includes, besides equity, the other claimholders in the firm A business and the equity in the business can be very different numbers A firm like GE has a value of $ 600 billion for its business but its equity is worth only $ 400 billion - the difference is due to the 2. – A free PowerPoint PPT presentation (displayed as an HTML5 slide show) on PowerShow. The resulting range of stock prices will be used in establishing a “fair” price for a share of stock. And a bonus layer. Common Stock Valuation When investment analysts use the dividend valuation model, they generally consider a range of growth scenarios. Book Value Per Share (BVPS) vs. Jul 09, 2021 Return on Invested Capital and Competi equity-valuation cfa-level-2. analyse earnings persistence, its determinants, and its relevance for earnings forecasting; 2. 3 Common Stock. Aug 23, 2021 Measuring Central Tendency in Multiples  Averaging Multiples/The Harmonic Mean The harmonic mean and the weighted harmonic mean Read More . Calculate various measures of bond yield. Read bond and stock quotations. Debt financing involves taking a loan that must be repaid with interest, while equity financing involves selling ownership Equity analysis introduction raju indukoori - Download as a PDF or view online for free. Money Matters Club IBS-HYD. Called as Intrinsic Value. 1 Microsoft Corporation Financial Highlights Valuation Methods Chapter 7Stocks (Equity) – Characteristicsand Valuation. John Maynard Keynes said: 663 views • 48 slides Equity typically refers to shareholders' equity, which represents the residual value to shareholders after debts and liabilities have been settled. High creditworthiness : The equity capital increases the company’s financial base & thus it’s borrowing limit increase. 1 Equity Valuation • Book Value • Net worth of common equity according to a firm’s balance sheet • Limitations of Book Value • Liquidation value: Net amount realized by selling assets of firm and paying off debt • Replacement cost: Cost to replace firm’s assets • Tobin’s q: Ratio of Equity valuation. The tool used here is residual income valuation. Ownership implies control. ) Cashflows from existing assets Cashflows before debt payments, but after taxes and reinvestment to maintain exising assets Expected Growth during high growth period Growth from new investments Growth Books. download Download free PDF View PDF chevron_right. Cash Flow Equity Valuation. Equity valuation is the process of determining the fair value of a company's ownership shares (equity). 5 Valuation of Preferences Shares 3. Bond Valuation (Chap 18 & 19) Annual Semi annual Bond Valuation Principles Price inversely related with interest rate. Introduction to Valuation (Updated for Spring 2025 class). Apply the most common types of dividend discount models. Chapter 07 Valuation & Characteristics Of Stocks • 14 likes • 5,903 views. 1 The Present Value of Expected Stream of Benefits from Equity Shares 3. Comprising twelve Presentation on theme: "Stocks and Their Valuation"— Presentation transcript: 1 Stocks and Their Valuation Chapter 9 Equity = $1,000,000. Valuation: Fundamental Analysis Fundamental analysis models a company’s value by assessing its current and future profitability. This practical example provides insight into both the market-based and Equity valuation ppt - Free download as PDF File (. Il vous suffira simplement d’appliquer la formule suivante : Stock Price = Equity Value / Diluted Number of Shares Learning how to use dividends for equity valuation. Let’s begin our exciting adventure! Intrinsic Value vs Market Price . be/7GgwFjyg5NU Equity Valuation Process: The are 5 steps in the equity valuation process as follows: 1) Understanding the nature of a company and its industry. 4 against a broad market index. Valuation of coupon paying bonds, annual and semiannual Yield-to-Maturity (YTM) calculation Bond terms and types Basics concerning stock valuation Valuation of constant growth (mature) stocks. Below is an example of an equity research report on Kraft Foods. More from. Present Value Models. Follow this publisher. Dividend discount models that value stocks based on the present value of expected future dividends, assuming either a constant growth This document discusses various equity valuation models and concepts, including the dividend discount model (DDM) and its constant growth and no growth variations. Fundamentals of Value Creation. Equity valuation is a financial term used to refer to all the techniques, methods and tools implemented to estimate the true value of a company’s equity. Comprising twelve Valuation Results www. Sample Valuation Course: Lecture Notes and Readings. Alternative Approaches to Valuation • Discounted Dividends • Discounted Free Cash Flow • Discounted Residual Income • Earnings Stock Valuation - Download as a PDF or view online for free. ppt / . Frameworks for Valuation. Reminder to Review Paine Webber Research: Chris Dixon. ” (p. It provides cÈ@Üà¡ 2‰ zº„ (&1h~Ëúbø @~ý¥õ??_Æ#Eö¬ëB{;ëÎuwŽkw£ ½ u 6k?š ÊÏï ¿Ã!¾V† âÕ œw » BœK1 Ø ßt´:y• > $lakZŽþç ‡õ k··4†Ý Essen&al Points ¨ Equity valua&on via discount cash flow formulas ¤ Dividend discount method ¤ Free cash flow to the firm method ¤ Free cash flow to equity method ¤ Economic profit method ¤ (Adjusted present value method) ¨ Constant growth and no growth discount methods ¨ Equity valua&on by constant growth dividend method ¨ Drivers of Equity Valuation Analysis. Valuation • Download as PPT, PDF • 52 likes • 32,609 views. 13. The discounted cash flow method, which values a business based on its future free cash flows Improve your presentation delivery using this Brand Equity Valuation Ppt PowerPoint Presentation Complete Deck With Slides. Investors are often confused between which valuation method to use and which valuation methods to use. Additional Resources Slide 28: This slide displays the equity valuation methods such as balance sheet methods, earning multiple methods and discounted cash flow method. Estimate the value of a bond. Bond valuation • 262 likes • 109,817 views. Section 2 discusses the implications of differences between estimated value Equity Valuation CHAPTER 13. Goodwill is the excess of the purchase price over the fair value of the net assets acquired. It begins by questioning whether markets are efficient and the purpose of valuation if they are. pdf), Text File (. Some examples are: EDGAR Finance. Valuation of goodwill • Download as PPTX, PDF • 64 likes • 53,308 views. This slide showcase techniques for valuation of organization equity share to analyze rate of return and assuming market hypothesis. It includes present value model, relative value model and asset based model. download Download free PDF View PDF equity and firm valuation—and then move on to consider how best to estimate the inputs into valuation models. 1 Equity Valuation • Book Value • Net worth of common equity according to a firm’s balance sheet • Limitations of Book Value • Liquidation value: Net amount realized by selling assets of firm and paying off debt • Replacement cost: Cost to replace firm’s assets • Tobin’s q: Ratio of firm 1 Chapter 10 Equity Valuation: Concepts and Basic Tools Presenter Venue Date This reading introduces equity valuation models used to estimate the intrinsic value (synonym: fundamental value) of a security; intrinsic value is based on an analysis of investment fundamentals and characteristics. The document discusses various methods for valuing shares, including net asset value, dividend yield, earnings capitalization, and average methods. Chapter 9 An Introduction to Security Valuation. Stock Valuation • Download as PPTX, PDF • 3 likes • 3,214 views. Some popular options include: “Investment Valuation: Tools and Techniques for Determining the Value of Any Asset“ by Aswath Damodaran “Security Analysis: Principles and Techniques“ by Benjamin Graham “The Intelligent Investor“ by Benjamin Graham Business Valuation Presentation Slide: Business valuation is the process of determining the economic value of a business or company. The Valuation aligns equity compensation with actual company value, ensuring employees do not receive artificially discounted options. Some assets such as brand name or specialized skills are not even on a balance sheet. Equity research experts and stock market analysts can leverage these Powerpoint slides to illustrate the various methods or types, benefits, and different models of stock valuation. Adapt it to equity_chapter8. Discover the crucial difference between intrinsic value and market price, two 28 Stock Valuation contd. It is an assessment of the worth of the business in terms of its assets, liabilities, financial performance, market position, and growth potential. You can harness the deck to depict the differences between discounted cash flow technique and the relative valuation technique. A company's financial health can be assessed Chapter 11 Equity Market Valuation Presenter Venue Date. The book value of equity is calculated as the difference between assets and liabilities on the company’s balance sheet, while the market value of equity is based on the current share price (if public) or a value that is determined by investors or valuation professionals. Use Our Equity Valuation powerpoint presentation slide template Power Point Templates To Steer Your Racing Mind. 1 Chapter 5: Bond and Stock (Equity) Valuation Bond valuation Zero coupon bond valuation and introduction to interest rate/bond price changes. FIN352 Vicentiu Covrig 1 Common Stock Valuation (chapter 10) equity-valuation cfa-level-2. These methods can either find the absolute value of a stock or the 4 The Nature of Equity Capital: Claims on Income & Assets Equity holders are have a residual claim on the firm’s income and assets. and can be based on a This equity valuation method is used for a target business with an identifiable stream of revenue or earnings, which the business can maintain. Bodie, Kane and Marcus Essentials of Stocks (Equity) Characteristics and Valuation What is equity? What factors affect stock prices? How are stock prices determined? How are stock returns determined? – A free PowerPoint PPT presentation (displayed as an HTML5 slide show) on PowerShow. The document discusses various bond valuation concepts like coupon rate, current yield, spot interest rate, yield to maturity, yield to call, and realized yield. Analyzing historical performance Suppose Hokia and Notorola betas are 1. It provides examples Equity Valuation • The Gordon Growth Model suggests that valuation is a function of: • Dividend (or free cash flow), • Growth in dividends (or free cash flows), • Discount rate. Relative valuation • Download as PPT, PDF • 7 likes • 3,245 views. Professionals in investment banking, private equity, equity research, corporate development, and financial planning and analysis, as well The Scope of Equity Valuation Stock Selection Extracting Market Expectations Evaluation of Corporate Events/Business Strategies/Private Businesses Rendering Fairness Opinion Communication with share holders and analysts . On this slide, we show the valuation formulas using the FCFF approach on the top two lines and the Using this equity valuation PPT presentation you can consolidate a visually-appealing financial ratio analysis. Florida Atlantic University Follow. Susan Chaplinsky . & 22. Presenter Venue Date. Equity Valuation versus Firm Valuation There are two paths to discounted cash flow valuation—the first is to value just Equity Markets and Stock Valuation Chapter 7. This presentation includes long-term goals and strategies, business pre-series and post-series valuation, etc. Business valuation • Download as PPSX, PDF • 11 likes • 13,075 views. It begins by outlining the valuation process of understanding the business, forecasting performance, and selecting an appropriate valuation This document discusses various equity valuation models and concepts. Find the value of a stock with supernormal growth for a few periods followed by normal growth. Two types of equity ; Common stock Ownership, residual claims on income. efinancemanagement. The document discusses various techniques for fundamental equity valuation Equity Valuation The value of equity is obtained by discounting expected cashflows to equity, i. Estimated Value and Market Price. Internal factors include indicators such as the performance of a company, its management structure Presenting this set of slides with name equity analysis project valuation ratio fy19 for equity research ppt powerpoint presentation backgrounds pdf. Represents ownership. 3)Super normal Growth initially and then normal growth : Non constant Growth : This model is considered for companies which are at an early stage of their life cycle and growing very fast ( growth rate g> r, so that the constant growth model cannot be applied directly, then they settle down into a mature, more stable rate of growth) Example Chapter 13 EQUITY VALUATION How to Find Your Bearings Outline • Balance Sheet Valuation • Dividend Discount Model • Earnings Multiplier Approach • Earnings – Price Ratio, Expected Return, and Growth • Other Comparative Valuation Ratios • Equity Portfolio Management • Forecasting the Aggregate Stock Market Return Techniques of Fundamental Equity Valuation 1 FIN 2808, Spring 10 - Tang Chapter 18: Equity Valuation Fin2808: Investments Spring, 2010 Dragon Tang Lectures 13 & 14 Equity Valuation Models March. Published on Sep 15, 2012. John Maynard Keynes said: 663 views • 48 slides. Gain an understanding of Equity Research and Valuation in this 12-hour course. Earnings persistence is broadly defined and includes the stability, predictability, variability, and trend in Common Stock Valuation In equilibrium, price = PV of expected cash flows. It is the reward granted in exchange Title: Equity Valuation 1 Equity Valuation. Valuation Frameworks the 'technology side' 2. State Your Company Name and begin. 1 Estimating Returns on Fixed Income Securities 3. It operates stores throughout the United States, Canada, China, Differences between equity and debt Unlike bondholders and other credit holders, holders of equity capital are owners of the. Risk assessment is When it comes to finding out the fair value of stocks, there are many equity valuation methods to choose from. most companies pay regular cash dividends on a quarterly basis regular cash dividends are sticky, which means that investors expect them to continue, and managers oblige regular cash dividends time line. Balance Sheet. This presentation sets the scene for further investigation of their business Business valuation - Download as a PDF or view online for free. My presentations; Profile; Feedback; Log out; Search. Related papers. It discusses key drivers of valuation like purpose and industry factors. The valuation models presented here are a foundation on which to base analysis and research but must be applied wisely. For businesses still at the development stage, projected revenue or earnings are used as the basis of valuation models. Goodwill is the excess of the The equity valuation models used to estimate intrinsic value—present value models, multiplier models, and asset-based valuation—are widely used and serve an important purpose. Julia Contingent claim valuation, where we take the valuation that we did in the DCF valuation and divvy it up between the potential thieves of value (equity) and the potential victims of this crime (lenders) Dante meets DCF: Nine layers of valuation hell. The Dividend Discount Model. • Value of security is closely related to the present value of the future cash streams. Fundamentals of Measuring and Managing Value. Key statistics about target companies are presented for easy viewing. Submit Search. We think you have liked this presentation. 5. Reading. So they can elect the board of directors & have right to vote on every resolution passed before the company. There are Chapter 14 EQUITY VALUATION How to Find Your Bearings. 456 views • 8 slides Understanding equity goes beyond its basic definition; it encompasses how it’s calculated, its role in different types of business entities, and its impact on shareholder wealth. S. htmRelative valuation https://youtu. Chris Argyrople, CFA Concentric LLC Enterprise Valuation & Cash Flow Analysis (Continued). VALUATION • Valuation is the process of determining the worth of an asset at zero period of time. savi_raina Follow. FIN352 Vicentiu Covrig 1 Common Stock Valuation (chapter 10) Equity Valuation Process. #3 - Comparable Transaction Comp. This document outlines a Fair Equity Value = $500 million – $20 million – $150 million + $30 million Fair Equity Value = $360 million. Equity Valuation Process. The Value realized at the end of maturity of the security is Terminal Value. Le passage de l’Equity Value au Stock Price . Greater Fool Theory of Investing. ppt - Free download as Powerpoint Presentation (. The cost of equity is essentially represented by the returns demanded by the investors in order to invest in the company. It offers a detailed analysis of a target company's financial performance, industry trends, and valuation. There are many techniques used for doing a valuation. 1. Expected cash flows = expected dividends + expected sale price of the stock. Businesses calculate enterprise value by adding the market As such, understanding these dynamics is crucial for anyone interested in equity valuation. Company-Specific Factors: Financial Health and Management. com 7 NPV1 of Explicit Value 27,645 NPV of Terminal Period 125,934 Enterprise Value 153,579 Add: Cash 7,969 Gross Enterprise Value 161,548 Less: Debt 6,470 Equity Value 155,077 Outstanding Shares 2,446,645,889 Value Per Share ($) 63. Two types of equity Common stock: Ownership, residual claims on income. The cost of equity is essentially represented by the returns demanded by the investors to invest in the company. 18) Equity Valuation Models Intrinsic value versus market price Dividend discount models (DDM) The constant-growth DDM Stock prices and investment opportunities Life cycles and multistage growth models Price-earnings (P/E) ratio Free cash flow valuation approaches Inflation and equity valuation Valuation of shares - Download as a PDF or view online for free . Reddy's Laboratories Ltd is an Indian multinational pharmaceutical company founded in 1984. Alamgir Alwani Follow. Framework for Business Analysis and Valuation. What is Equity? In finance and accounting, equity is the value attributable to the owners of a business. Presentation contents:. Role of RBI in the Indian Chapter 10 Equity Valuation: Concepts and Basic Tools. Submit Search . 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Basic Valuation Models Value of an asset is present value of future cash flows discounted at the required rate of return Cash flow definition is bit complex for an equity investment Valuation Models based of cash flow definition Dividend Capitalization Model Earning Capitalization Model (or Price-Earnings Multiplier) Use Our Equity Valuation powerpoint presentation slide template Power Point Templates To Steer Your Racing Mind. Chap 11 - Equity Analysis and Valuation - Free download as PDF File (. regular cash dividends. It has grown through acquisitions like Benzex Laboratories in 1988 and Cheminor Drugs in 2000 to become one of the largest Equity valuation models can derive either absolute or relative values. 10,000 in 2. Intrinsic value versus market price Dividend discount models (DDM) The constant-growth DDM Stock prices and investment opportunities Life cycles and multistage growth models Price-earnings (P/E) ratio Slideshow 1583085 by mandell 3. Learning Outcomes Chapter 7 Explain what equity is and identify some of the features and characteristics of (a) preferred stock and (b) common stock. Slide 3: This slide showcases Brand Equity comprises of 4 factors; which are discussed in next slides. It covers analyzing earnings persistence through recasting and adjusting earnings components, and examining determinants of Full packets: Equity Instruments (Valuation) Class. Equity Valuation 13 Bodie, Kane, and Marcus Essentials of Investments, Stock Valuation RWJ-Chapter 8. Valuation: Measuring & Managing the Value of Companies. This document discusses equity analysis and valuation. com 13-4 Equity Valuation CHAPTER 13. Both equity value and enterprise value are used to value companies, with the exception of a few industries such as banking and insurance, where only equity value is used. We then consider how to go from the value of a firm to the value of equity per share. You can depict how this valuation helps investors decide whether or 9. It provides examples of applying the DDM to calculate stock During the first month of internship Varsha Bezzam, a student made this absolutely detailed presentation on HUL. Our investment research PowerPoint templates help you to compile valuation analysis using various methods. As you can see in the images below, the analyst clearly lays out the recommendation, target price, recent updates, investment thesis, valuation, and risks. Survey on the Methods of Valuation of Shares and other Equity in Financial Accounts. Embellish Your Thoughts By Using Our Equity Valuation powerpoint presentation slide template Power Point Templates. Equit Survey on the Methods of Valuation of Shares and other Equity in Financial Accounts. • Chapter 3 extends DCF analysis to value a firm and the firm’s equity securities by valuing its free cash flow to the firm (FCFF) and free cash flow to equity (FCFE). See full PDF download Download PDF. Relevant Facts • CEO is Howard Schultz (Highly Regarded) • ESG investing – Quantum India Equity ESG Fund - Investors are fast evolving to make ESG factors (Environment, Social and Governance) a part of their portfolio. Anjana Vivek Follow. It also covers risks associated with wrong valuation. Stock Valuation - Download as a PDF or view online for free . Common Stock Valuation. To learn more, check out CFI’s Valuation Modeling Classes. Right to control Equity shareholders are owners of the firm. This include leadership analysis, industry study MOATS for HUL Business outlook & strategy Financial modeling Equity Valuation using price earning method and DCF valuation Peer comparison Read less 3. However, while the dividend growth model is a useful analytical tool, the model is not the last word on stock valuation; other 1. Generally it is RS 100 or RS 1000. Securities here include Equity share, Preference share and Bond/Debenture. 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This document discusses key concepts related to analyzing earnings persistence for equity valuation, including: 1) Recasting and adjusting earnings helps assess earnings persistence by rearranging earnings components and assigning them to the proper Valuation: Fundamental Analysis Fundamental analysis models a company’s value by assessing its current and future profitability. Bimarsh Giri Follow. This document discusses residual income valuation models. 1 Video 03A Capital formation Corporations need capital, meaning money, to run their business. The document discusses various methods for valuing equity shares, including The document discusses various techniques for fundamental equity valuation including balance sheet valuation, discounted cash flow techniques like the dividend discount model and free cash flow model, and relative valuation Inflation and Equity Valuation • Inflation has an impact on equity valuations. 1 Dividend Discount Models. Designed to support informed investment decisions, the For private companies, the 409A Valuation provides an objective stock price benchmark since their stock does not trade on public exchanges. Topic. Valuation of coupon paying bonds, annual and semiannual ; Yield-to-Maturity (YTM) calculation ; Bond terms and types ; Basics concerning stock valuation ; Valuation of constant growth (mature) stocks. Usually this rate is fixed throughout the life of the bond – Maturity 12. Method 1 : Dividend Discount Model • PVGO mewakili bagian dari nilai intrinsik saham yang dikaitkan dengan pertumbuhan perusahaan • Untuk menghitung PVGO, digunakan Constant Growth Model dan juga No Growth Model • Kita dapat menggunakan Sustainable Growth Rate Equation untuk mendukung asumsi Return on Equity perusahaan Topic 10 Equity Valuation Models Intrinsic value versus market price Dividend discount models (DDM) The constant-growth DDM Stock prices and investment opportunities Life cycles and multistage growth models Price-earnings (P/E) ratio Slideshow 14699 by issac Equity Valuation 13 Bodie, Kane and Marcus Essentials of Investments 9th Global Edition. It is the reward granted in 1 CHAPTER 18 : Shareholders’ Equity Learning Objectives: LO18-1 Describe the components of shareholders’ equity and explain how they are reported in a statement of shareholders' equity. Some examples are: ––EDGAR EDGAR –Finance. 4 Valuation of Fixed-income Securities 3. Support your business vision and objectives using this well-structured PPT deck. They Will Help You Illustrate The Brilliance Of Your Ideas. analyse earning power and its usefulness for forecasting This equity valuation method is used for a target business with an identifiable stream of revenue or earnings, which the business can maintain. 3. Debt vs equity • Download as PPTX, PDF • 2 likes • 4,173 views. 482 views • 23 slides 2. Describe how stock prices (values) are determined when (a) dividends grow at a constant rate and (b) dividend growth is nonconstant. Comprising twelve 4 FCFF vs. It covers topics such as how common stockholders own shares in a corporation but have limited control. describe equity valuation and its relevance for financial analysis; 4. 2 Dividend Valuation Model 3. The document discusses common stock and its valuation. Chapter 14 EQUITY VALUATION How to Find Your Bearings. equity-valuation cfa-level-2. This second equity market value formula is commonly used to find the "fair equity value" (using DCF Approach) We use the following steps to calculate the fair equity market value - Use the DCF approach using FCFF to find the Enterprise value of the firm. Il vous suffira simplement d’appliquer la formule suivante : Stock Price = Equity Value / Diluted Number of Shares Valuation of goodwill - Download as a PDF or view online for free . Après avoir calculé l’Equity Value de l’entreprise que vous analysez ainsi que son Diluted Number of Shares, vous serez en mesure de déterminer son Stock Price. Preferred stock Preferred pay-out benefit, but lesser control of company. There are numerous books available on equity valuation, covering different aspects of the subject. Template 5: Fixed Asset Investment 27 Earning-Based Valuation Earnings-Based valuation of Equity Most valuation models are based on the dividend model of finance, which states that the value of a share of stock is equal to the present value of the expected future dividends to be received discounted at a risk adjusted rate. Equity Value Per Share → The equity value per share is the fair market value (FMV) of a company’s common stock, reflecting forward-looking investor sentiment regarding its Valuation Definition. Dealing with Uncertainty. The document discusses various valuation Equity IPO/ FPO Family Separation PPA Portfolio Value of Investments Regulatory Approval Litigation Test of Impairment Buyback of Shares Purchase / Sale of Business Why Valuation? Merger/ Demerger . 8 Key Words Equity valuation models can derive either absolute or relative values. Week. The simplest present value model of equity valuation is the dividend discount 49 The first approach: Discount the free cash flow for the firm (FCFF) at the weighted average cost of capital (WACC) to obtain the value of the firm, and subtract the then-existing value of This document discusses various models for valuing common stocks, including: 1. Value of security is closely related to the present value of the future cash streams. Value a preference stock. It provides an example of investing Rs. The Multiples Valuation: Equity Value vs Enterprise Value. Valuation of shares • Download as PPTX, PDF • 101 likes • 115,888 views. Below is the Comparable Transaction Comp of Box IPO Valuation. Financial Statement Analysis 2. Because equity holders are the last to receive distributions, they expect greater returns to compensate them Presenting our Equity Valuation Models Ppt Powerpoint Presentation File Graphics Example Cpb PowerPoint template design. We have tried to present the various techniques to stock valuation under which Equity earnings which are retained in firm tend to increase market value of equity shares & earnings distributed as dividend provide current income to equity shareholders. Analyzing Equity valuation: Value just the equity claim in the business! Firm Valuation: Value the entire business! More)generally)The)value)of)any) business)is)afunc%on)of. Chapter 13 Equity Valuation. You can get the supporting lecture notes by clicking on the pdf files below - the pages covered by each lecture are provided next to each lecture. ppt), PDF File (. As with the free cash flow valuation covered in Chapter 4, residual income valuation is useful when the firm does not pay dividends. Background for the Survey on Valuation of Shares Content and Main results Replies to General Questions Replies to ### understanding Equity valuation. ex-dividend date: after this date, share holders are not entitled to the declared dividends Chapter 11 - Equity Analysis And Valuation Equity Analysis and Valuation REVIEW Equity analysis and valuation is the focus of this chapter. Download presentation. B. It begins by explaining that common stock represents ownership in a company, with ownership implying control over the company through electing EQUITY VALUATION. The stages in this process are price to earning, price to book value, rice to sales, price to cash flow. Valuation (continue). “the current price of the stock can be written as the present value of the dividends beginning in one period and extending out forever. Topic 9 (Ch. It is based on historical values of assets and liabilities, which may not reflect current values. Ch 2 . Companies can raise capital through either debt or equity financing. Absolute valuation models derive an asset’s intrinsic value and generally take the form of discounted cash flow models. • Empirical research shows that inflation has an adverse effect on equity values. This equity research report slide offers a detailed yet brief overview of an equity research report. The purpose of valuation is to appraise a security and compare the calculated value to the current market price in order to find wise investments. In Chapter 6 we discussed the Cash Flow Equity Valuation. 2 The Investment Decision Process Determine the required rate of Valuation of goodwill - Download as a PDF or view online for free . 28 Discounted Cash Flow Sensitivity Analysis Adjustments Present Value Terminal Value Discount Rate FCFF Projections This slide is 100% editable. • Valuation of coupon paying bonds, annual and semiannual • Yield-to-Maturity (YTM) calculation • Bond terms and types • Basics concerning stock valuation • Valuation of constant growth (mature) stocks. Key Valuation Inputs • Cost of Capital • Forecast Financial Statements • Value of Contingent Equity Claims. It depends on the metric Corporate valuation - Download as a PDF or view online for free. CFA Institute EQUITY RESEARCH REPORT ESSENTIALS SEPTEMBER 2020 . At the end of equity valuation chapter 7 sections: 7 to 7. The valuation of equity ties into both tangible book values and intangible market perceptions, which can diverge significantly. The presentation slide is on stock valuation. 10. Basic Valuation Models Value of an asset is present value of future cash flows discounted at the required rate of return Cash flow definition is bit complex for an equity investment Valuation Models based of cash flow definition Dividend Capitalization Model Earning Capitalization Model (or Price-Earnings Multiplier) 24 Features of Common Stock Voting Rights Proxy voting Classes of stock Other Rights Share proportionally in declared dividends Share proportionally in remaining assets during liquidation Preemptive right – first shot at new stock issue to maintain proportional ownership if desired Shareholders have the right to elect the board of directors and vote on other important issues. siddharth yadavendu. Equity Valuation . 1 Equity Valuation Book Value Net worth of common equity according to a firm’s balance sheet Limitations of Book Value Liquidation value: Net amount realized by selling assets of firm and paying off debt Replacement cost: Cost to replace firm’s assets Tobin’s q: Ratio of firm’s market value to replacement cost 1 FIN 2808, Spring 10 - Tang Chapter 18: Equity Valuation Fin2808: Investments Spring, 2010 Dragon Tang Lectures 13 & 14 Equity Valuation Models March. Ratio Analysis 4. T. ROE = 10%. It is commonly referred to as the most pivotal aspect of successful investment decision-making. Part I: Discounted Cashflow Valuation: This is a pdf file and works well if you have Earning-Based Valuation Valuation Multiples • Price-to-Earnings (PE) expressed in accounting data • Where k is the cost of equity capital, STG (LTG) is the expected short-term Chapter 10: Equity Valuation & Analysis - Free download as Powerpoint Presentation (. 3. Build a crisp industry overview involving competitive environment analysis and the latest industry trends. Section. Apply Gordon's growth model to evaluate the equity of a firm. This template is perfect for Bond valuation - Download as a PDF or view online for free. VALUATION Valuation is the process of determining the worth of an asset at zero period of time. 1 FINANCIAL ANALYSIS 1. However, investors must understand that there are two main categories of equity valuation models. com - id: 534fed-Y2M3Z When people visit the CFA curriculum for the first time, Equity is a topic that everyone finds very interesting. Preferred stock: Preferred pay-out benefit, but lesser control of company. edu/~moyr/videoonyoutube. and can be based on a Mastering Equity Valuation for the CFA Level 1 Exam. This template offers a great starting point for delivering beautifully designed presentations on the topic of your choice. Equity Value. Himanshu Arya Follow. Neoclassical Approach to Growth Accounting Cobb-Douglas production function Assuming constant returns to scale, 1 – α = β, and taking the natural logarithm of both sides of first equation gives Taking first differences of second equation and using a property of logarithms results in this approximation: Models of Equity Valuation Balance Sheet Models Book Value Dividend Discount Models Price/Earning Ratios. Understand the concepts of equity capital, stock, and dividends. stjohns. Steps in Valuation Obtaining Information Data analysis & review Discussion with the management of the company Selection of method Conducting sensitivities on 1 Residual Income Valuation: Valuing Common Equity Presenter Venue Date This chapter builds on the previous chapter by providing the analyst another tool with which to value firm equity. If you wish to download it, please recommend it to your friends in any social system. 27 Earning-Based Valuation Earnings-Based valuation of Equity Most valuation models are based on the dividend model of finance, which states that the value of a share of stock is equal to the present value of the expected future dividends to be received discounted at a risk adjusted rate. Equity Valuation (Chap 15) Discounted Cash Flow techniques DDM PV OCF PC FCF Relative Valuation techniques P/E P/CF P/BV P/S. Improve your presentation delivery using this Brand Equity Valuation Ppt PowerPoint Presentation Complete Deck With Slides. explain recasting and adjusting of earnings and earnings components for analysis; 3. Download Now! Template 2: The Pragmatic Guide to Early Business Startup Valuation PowerPoint Presentation Slides. • Securities here include Equity share, Preference share and Bond/Debenture. So there is a wide scope of marketability of equity shares. The document discusses equity analysis as an investment tool for becoming wealthy over long periods of time. Sep 30, 2021 Valuations are vital to professionals in financial analysis, business analysis, and other finance careers. 38 Valuation Results Valuation (USD) All Figures in $ MM Note: 1NPV = Net 7 Equity Valuation versus Firm Valuation Value just the equity stake in the business Value the entire business, which includes, besides equity, the other claimholders in the firm A business and the equity in the business can be very Relative valuation - Download as a PDF or view online for free. Equity analysis introduction raju indukoori • 6 likes • 1,866 views. Major classifications of multiples Price multiples – ratios of a stock’s market price to some measure of fundamental value per share Enterprise value multiples. See Debt vs equity - Download as a PDF or view online for free. The purpose of fundamental analysis is to identify mispriced stocks relative to some measure of “true” value derived from financial data. It outlines factors to consider under each This slide Provides the pre and post money equity valuation and share value with ownership percentage. A few years ago, I asked students to let me know at the start of the semester what companies they would be valuing and also whether they thought these companies were under or over valued (before they had actually done the valuation). Learn to analyze financial statements, compute costs of equity and debt, calculate the weighted average cost of capital (WACC), and apply valuation models like Gordon's Dividend Growth, Multistage Dividend Discount, and DCF. Howard Finch. Sources/ Uses of Funds 5. The DCF valuation of Valuation. This PowerPoint slide showcases three stages. 4 Models of Equity Valuation Valuation models using comparables Look at the relationship between price and various determinants of value for similar firms The internet provides a convenient way to access firm data. It involves assessing the intrinsic worth of a business based on its assets, earnings potential, growth prospects, and risk factors. Valuation? The Scope of Equity Valuation Stock Selection Extracting Market Expectations Evaluation of Corporate Events/Business Strategies/Private Businesses Rendering Fairness Opinion Communication with share holders and analysts . Equity Value Per Share: What is the Difference? The difference between the equity value per share and the book value per share (BVPS) is as follows. 2008. , the residual cashflows after meeting all expenses, tax obligations and interest and principal payments, at the cost of Our aesthetically pleasing Equity Valuation PPT template is the best pick to describe the process of determining the fair value of the equity stock of a company. This document outlines a framework for business analysis and valuation that involves three steps: 1) Understanding the past through information collection, accounting analysis, and financial ratio analysis, 2) Forecasting the Equity research experts and stock market analysts can leverage these Powerpoint slides to illustrate the various methods or types, benefits, and different models of stock valuation. . The document discusses various methods for valuing companies, including cost-based methods like book value and replacement cost, income-based methods like earnings capitalization and discounted cash Use these templates to know the equity needs of the company. Equity Valuation, Firm Valuation and Adjusted Present Value (APV) Valuation There are three paths to discounted cashflow valuation -- the first is to value just the equity stake in the business, the second is to value the entire firm, which includes, besides equity, the other claimholders in the firm (bondholders, preferred stockholders, Models of Equity Valuation Valuation models use comparables –Look at the relationship between price and various determinants of value for similar firms The internet provides a convenient way to access firm data. • Research shows Equity Valuation Process • Valuation? • The Scope of Equity Valuation • Stock Selection • Extracting Market Expectations • Evaluation of Corporate Events/Business Strategies/Private Businesses • Rendering For common shares, an analyst can equate benefits to the cash flows to be generated by the investment. 445 views • 22 slides . txt) or view presentation slides online. FIN352 Vicentiu Covrig 1 Common Stock Valuation (chapter 10) This 26-session equity valuation class will be starting January 31, 2022, and the sessions will be online, though recordings will be acceible on multiple platforms. Distinguish between various valuation concepts. This document discusses various equity valuation models and concepts, including the dividend discount model (DDM) and its constant growth and no growth variations. Dr. company. Equity Markets and Stock Multiples Valuation: Equity Value vs Enterprise Value. Introducing our premium set of slides with Techniques For Valuation Of Equity Shares Relationship of discounted cash flow valuation to equity analysis DCF valuation is a method of estimating the value of an investment based on its expected future cash flows. yahoo. com Table 13. Pages 148 – 149 Another way of differentiating the FCFF and FCFE approaches to valuation is to examine the respective valuation formulas. Moreover, the way equity is Valuation is the analytical process of determining the current or projected worth of an asset or a company. Calculate the value of a stock using the dividend discount model and the P/E ratio approach. Bond valuation ; Zero coupon bond valuation and introduction to interest rate/bond price changes. 185) Discount rate R comes Learn how to use dividends for equity valuation. Deliver an awe inspiring pitch with this creative pre and post money private equity valuation ppt layouts background designs pdf bundle. Welcome to the enchanting world of equity valuation! This article will help you navigate the ins and outs of various valuation models, preparing you for the CFA Level 1 Exam. Home Depot is a home improvement retailer that sells building materials and home improvement products. FIL 404 Keldon Bauer, PhD. Major Categories of Equity Valuation Models. 2 The Investment Decision Process Determine the required rate of return Evaluate the investment to determine. They need the money Le passage de l’Equity Value au Stock Price . • Designed for understanding of equity valuations for tech guys in various start-ups, this is a quick and simple re-cap on equity valuations. This include leadership analysis, industry study MOATS for HUL Business outlook & strategy Financial modeling Equity Valuation using price earning method and DCF valuation Peer comparison Read less Equity Valuation PPT. This is a four stage process. 7 Summary 3. Differences between equity and debt Unlike bondholders and other credit holders, holders of equity capital are owners of the. Upload Log in. Slide 4: This slide presents Brand Equity Framework Learning Outcomes After studying this chapter you should be able to: 1. Pruthiviraj chinthala Follow. Chapter 5: Bond and Stock (Equity) Valuation • Bond valuation • Zero coupon bond valuation and introduction to interest rate/bond price changes. Slide 2: This slide displays the Content of the presentation. Equity Valuation. 8. This prepopulated PPT design illustrates every technique to conduct an all-inclusive business valuation with all departments included, such as market, equity, pricing, etc. fbnfe xdir mjlesx hpufns vayez rfz araypql imcm tzyza okxe