TAILIEUCHUNG - Winter Semester 2010 Lahore School of Economics

The two approaches to valuing common stocks using fundamental security analysis are: Discounted Cash flow techniques. Attempts to estimate the value of a stock today using a present value analysis. Relative valuation techniques. A stock is valued relative to other stocks based on the basis of ratios. | Investments BSC III Winter Semester 2010 Lahore School of Economics Chap 10 Common Stock Valuation Investments Common Stock Valuation Learning Objectives Common Stock Valuation Dividend Growth model Zero Growth Constant Growth Multiple growth model Intrinsic Value & Market price Relative Valuation Techniques (P/E,P/S,P/S) Components of Required Return 2 Capital Market Securities Fixed Income (Bonds) Treasuries Corporates Equities Preferred Stock Common Stock 2 Common Stock It is an equity ownership in a corporation, initially issued to raise capital Points to keep in mind! C/F’s are NOT known in advance Life of stocks is forever – no maturity Difficult to observe required rate of return for discounting 2 Common stock valuation The two approaches to valuing common stock using fundamental security analysis are: Discounted Cash flow techniques Relative valuation techniques Common stock valuation The two approaches to valuing common stocks using fundamental security analysis are: Discounted Cash flow techniques Attempts to estimate the value of a stock today using a present value analysis. Relative valuation techniques A stock is valued relative to other stocks based on the basis of ratios. Key difference! Discounted Cash Flow Techniques The estimated value of a security is equal to the discounted value (Present Value) of the future stream of cash flows that an investor expects to receive from the security: Estimated Value of any security = V0 V0 = Expected Cash Flows/ (1 + K)t Where: K is the appropriated Discount Rate Discounted Cash Flow Techniques To use Discounted Cash flow Model, an investor must: Estimate the amount & timing of future stream of Cash flows. Estimate an appropriate Discount Rate Use these two components in PV Model to estimate the value of the security, which is then compared to the current Market Price of the security. Discounted Cash Flow Techniques Two different approaches to the cash flows & discount rates can be used in the valuation of .

• Đầu tư Chứng khoán
• Zero Growth
• stock valuation
• Common Stock
• Constant Growth
• discount models
• Market price
• Conventional tillage
• Zero tillage
• Leaf area index
• Growth attributes of wheat
• Six different genotypes
• Potato (Solanum tuberosum L )
• Non crop mulch
• Rice eco system
• Non crop mulch management
• Varying moisture regimes
• Yield of zero tillage potato
• Rain fed low land rice eco system
• Conservation agriculture
• Growth performance
• Soil microbial parameters in wheat
• Crop residues
• Nitrogen management practices
• Rice residue load
• Growth and productivity
• Wheat under tillage systems
• Residue loads in Tarai region
• Stale bed direct seeded rice
• Mechanical transplanted rice
• Establishment method
• Weed management
• Bed planting
• Fodder maize
• Nitrogen and zero tillage
• Nitrogen levels
• Seed yield of fodder maize
• Prestige sensitivity on price acceptance
• Vietnam’s mobile phone market
• Price mavenism and price acceptance
• Prestige sensitivity and price acceptance
• Exploratory factor analysis
• Confirmatory factor analysis
• Oil price shocks
• Stock market returns
• G7 stock markets
• Oil price and stock market
• US stock market returns
• Summary of thesis Economics development
• Summary of thesis development
• Listing price strategy
• Selling price
• Family housing market
• A complete guide to volume price analysis
• Volume price analysis
• Stock market
• Electronic Ticker
• Volume price analysis examples
• Accounting conservatism
• Market liquidity
• Price efficiency
• Mark to market accounting
• Market accounting
• Price to earnings
• Price to book value
• Market sensitivity to index
• Tehran Stock Exchange
• Book to market equity ratio
• Market price method
• Vembanad lake
• Chinese dip nets
• Economic value
• Using market price approach
• Chinese dip net fishing
• Statistical arbitrage
• Financial crises
• Equity price busts
• Equity price busts coinciding
• Market timing opportunities arise
• A mathematician plays the stock market
• Diversifying stock portfolios
• Connectedness and chaotic price movements
• Chaotic price movements
• Fuel futures market
• Fuel price risk management
• Hedging risks
• Fuel prices in Vietnam’s market
• Fluctuations in the crude oil price
• Price theory
• Price applications
• Market power
• The theory of games
• External costs
• The market for labor
• Allocating goods over time
• Asset price volatility
• Vietnam stock market
• Value at risk
• Estimate market risks
• Risk management models
• Emerging economy
• Vector autoregressive
• Stock market of developing economies
• Market economics
• Labour market economics
• Lecture Labour market economics
• Labour market
• Wage changes
• Price inflation
• Oil prices
• Crude oil price
• Emerging markets
• Indian stock market
• Summary of PHD thesis
• The impact of monetary policy on the stock market
• Stock price and market liquidity
• The stock market
• The development of the stock market
• IPO pricing mechanisms
• Fixed price methods
• Fixed Price
• Book Building
• Market conditions
• Mobile phone
• Prestige sensitivity
• Price acceptance
• Price mavenism
• Product knowledge
• Essentials of microeconomics
• Cross price elasticity
• Market demand
• Price elasticity
• Economic price
• Natural resource valuation
• Semi arid eastern plain
• Optimum cropping pattern
• Energy price commodity price
• Gold price
• Stock return
• Granger causality
• The Journal of Agriculture and Development
• Tạp chí Nông nghiệp và Phát triển
• SARIMA model
• Natural rubber price
• Rubber price forecast
• Root Mean Square Error (RMSE)
• Fluctuation limit
• Stock price risks in Vietnam
• GARCH model
• Market risks
• Future gas price mechanism
• Gas market expansion proceeded
• Indigenous gas reserves
• Risk market stagnation
• Government policy objectives
• Indian commodity derivatives market and price inflation
• Indian commodity derivatives marke
• Number of factors
• Including supply side constraint
• Bio fuel production
• Loose monetary policy