Equity valuation ppt. Basic Types of Models Balance Sheet Models Dividend Discount Models Price/Earning Ratios Estimating Growth Rates and Opportunities. The stages in this process are price to earning, price to book value, rice to sales, price to cash flow. B40. Nov 15, 2014 · Equity Markets and Stock Valuation. 13. 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 techniques like Mar 8, 2011 · The document discusses several basic valuation models and concepts, including: 1. 2) Dividend discount models that value a stock based on the present value of expected future dividends. Published on Sep 15, 2012. Our fully editable and customizable PowerPoint presentations on equity valuation provide a comprehensive overview of the various methods and techniques used to assess the worth of a company's equity. 2 3. Dec 22, 2011 · Alternatively, the valuation mechanics can be based on the operating free cash flows available to all of the firm’s investors (i. 1. . NEED OR PURPOSE When two or more companies amalgamate or one company absorb another company. Key Concepts and Skills. Equity Valuation Process. Represents ownership. The dividend capitalization model values a stock based on its expected future dividends discounted at the cost of equity minus the growth rate. Equity Valuation versus Firm Valuation Jul 3, 2013 · Equity Valuation The value of equity is obtained by discounting expected cashflows to equity, i. 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 Equity Valuation Analysis. They Will Help You Illustrate The Brilliance Of Your Ideas. 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 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. pptx), PDF File (. The stages in this process are projections, discount rate, present value, sensitivity analysis, sales, marketing, price. Framework for Business Analysis and Valuation. Chapter 13 Equity Valuation. Balance Sheet Models. 5. 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 Apr 7, 2018 · 9. Equity Valuation. You can depict how this valuation helps investors decide whether or not to invest in a company keeping in mind the potential market price of the stock. Replacement cost: Cost to replace firm’s assets. Equity Capital The long-term funds provided by the firm’s owners, the stock-holders. Understand the concepts of equity capital, stock, and dividends. They need the money Equity Valuation. Workshop conducted by MMC. 4. Apr 27, 2015 · This document provides an overview of business valuation. Download WSO's free Valuation Summary PowerPoint template below! This template allows you to create your Valuation Summary slide as part of your overall strategy. Nov 19, 2014 · Equity Valuation and Analysis with eVal. Can have different classes - A, B, etc. Chapter 5: Bond and Stock (Equity) Valuation Bond valuation Zero coupon bond valuation and introduction to interest rate/bond price changes. Brand Audit: - is a consumer-focused exercise that involves a series of procedures to access the heath of the brand, uncover its sources of equity and suggest ways to improve and leverage its equity. 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 . Nov 4, 2024 · A free plug-and-play template to present your Valuation Summary. Chap 11 - Equity Analysis and Valuation - Free download as PDF File (. Analyzing historical performance Suppose Hokia and Notorola betas are 1. It discusses (1) forecasting earnings, (2) estimating cash flows, (3) estimating the discount rate, (4) comparing the DCF value to multiples and doing a reality check, and (5) using multiples valuation as a secondary method. Presenter Venue Date. The value of the equity claim alone is established by subtracting the market value of the outstanding debt from the intrinsic value of the entire firm. By issuing Equity shares, the company increases its financial capability. Indirect approach and direct approach. Follow this publisher. 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 Sustainable Growth Rate (g) = ROE x RR *RR : Retention rate Valuation: Measuring & Managing the Value of Companies. 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Alternative Approaches to Valuation. company. Equity analysts employ two kinds of analysis, viz. Chapter 18. Jan 9, 2024 · Free Cash Flow to Equity (FCFE) Valuation Model The cash flow that the firm can afford as dividends and contrasted with actual dividends—may not payout as dividends The residual cash flow left over after meeting interest and principal payments and providing for capital expenditures is the FCFE Mar 17, 2019 · Equity Valuation Models. This blog covers what a full valuation looks like. Sep 16, 2012 · Equity Valuation PPT. Equity / Business Valuation Income Approach • Generally, Income Approach involves valuing a company using the following – 1. of Equity shares (FV - INR 10 each) 9,00,000 Value per Share (INR) 489 ABC Ltd. Mar 6, 2019 · This document discusses different approaches to valuation, including project valuation, asset valuation, liabilities valuation, earnings valuation, equity valuation, debt valuation, and firm valuation. More from. Equity Valuation Models. Cost of Capital Forecast Financial Statements Value of Contingent Equity Claims. For debentures and preference shares, the valuation models discount future interest and principal cash flows to arrive at a present value. IV > MP Buy. High credit worthiness : The equity capital increases the company’s financial base & thus it’s borrowing limit increase. Users can explore and understand multiple risk dimensions, including equity, interest rate, currency, liquidity, and concentration risks. Find the value of a stock with supernormal growth for a few periods followed by normal growth. Book Value. Book Value Net worth of common equity according to a firm’s balance sheet Limitations of Book Value Slideshow 1642098 by mingan EQUITY VALUATION. This document discusses equity analysis and valuation. It begins by questioning whether markets are efficient and the purpose of valuation if they Tl;dr: Part of a collection of real examples of M&A investment banking slides. 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The PPT Template illustrates associated risks with equity research. ppt - Free download as Powerpoint Presentation (. 38 All Figures in $ MM Note: 1NPV = Net Present Value Valuation Results Valuation (USD) P/E Ratios are a function of two factors. 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. 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Valuation Concept Purpose of Valuation No. Suppose that ABC stock has: an expected dividend per share: E(D1) = $4. 973 views • 28 slides Presenting this set of slides with name assessing stocks in financial market methods used for valuation in equity research ppt powerpoint presentation gallery summary pdf. com - id: 3c3ce0-NDNmZ Use Our Equity Valuation powerpoint presentation slide template Power Point Templates To Steer Your Racing Mind. Jul 11, 2014 · Equity Instruments: Part I Discounted Cash Flow Valuation. , the residual cashflows after meeting all expenses, tax obligations and interest and principal payments, at the cost of equity where, CF to Equity t = Expected Cashflow to Equity in period t ke = Cost of Equity Discounted Cashflow Valuation Aug 29, 2012 · 2. Two types of equity Common stock: Ownership, residual claims on income. • Securities here include Equity share, Preference share and Bond/Debenture. 18 ) Equity Valuation Models . – A free PowerPoint PPT presentation (displayed as an HTML5 slide show) on PowerShow. Free Cash Flows to the Firm (FCFF) – Wherein cash flows (explicit period and terminal value) at the ENTERPRISE LEVEL are discounted with the company’s Weighted Average Cost of Capital to arrive at Enterprise value (EV). Sep 6, 2010 · Chapter 10 Equity Valuation: Concepts and Basic Tools. Chapter 10 Valuation. This document discusses various equity valuation models and concepts, including the dividend discount model (DDM) and its constant growth and no growth variations. It is often seen as the most crucial element of a successful investment decision. It covers analyzing earnings persistence through recasting and adjusting earnings components, and examining determinants of persistence like variability and trends. Liquidation value: Net amount realized by selling assets of firm and paying off debt. Discounted Cashflow Valuation: Basis for Approach. Price/Earning Ratios. Introduction to Valuation (Updated for Spring 2024 class). where CF t is the expected cash flow in period t, r is the discount rate appropriate given the riskiness of the cash flow and n is the life of the asset. Absence of Arbitrage Valuation, 2014 download Download free PDF View PDF chevron_right Comparative Analysis of Earnings Rate, Retention Rate, and Dividend Yield as Determinants of Capital Growth 3. com - id: 139074-ZWQ0M Oct 17, 2019 · Stock Valuation - Download as a PDF or view online for free. Common valuation methods are described such as income, asset, and market approaches. The template is plug-and-play, and you can enter your own text or Apr 15, 2020 · APPROACHES TO VALUATION Discounted cash flow or PV models: Dividend discount model : based on cash distributed to share holders Free cash flow to equity model: based on cash available to share holders Multiplier models: Market multiplier models based on Ratio of stock price to fundamentals like earnings, sells, book value etc. txt) or view presentation slides online. e. Apr 5, 2019 · Equity Valuation Process. Role of RBI in the Indian Economy. Lectured by Chandra Wijaya. The incredible deck can be utilized to demonstrate the prominent users, advantages, and disadvantages of this valuation approach and the major categories of equity valuation models. , both stockholders and bondholders). Apr 4, 2019 · Topic 9 (Ch. Equity valuation is a critical aspect of financial analysis that involves determining the true intrinsic value of a company's stock. Models of Equity Valuation. Feb 23, 2019 · VALUATION • Valuation is the process of determining the worth of an asset at zero period of time. Bodie, Kane and Marcus Essentials of Investments 9 th Global Edition. Estimated Value and Market Price. 1. pdf), Text File (. Trading Signal. The Feb 10, 2014 · So there is a wide scope of marketability of equity shares. Jul 11, 2014 · Equity Valuation 13 Bodie, Kane, and Marcus Essentials of Investments, 9th Edition. Chapter 10 Equity Valuation: Concepts and Basic Tools. Net worth of common equity according to a firm’s balance sheet. We then consider how to go from the value of a firm to the value of equity per share. • Value of security is closely related to the present value of the future cash streams. Common Stock. 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Discounted Dividends Intrinsic Value versus Market Price The expected holding-period return: Assume a one-year holding period. 1 - Free download as Powerpoint Presentation (. 63k views • 38 slides ¨ Asset based valuation may be used in the context of ¤ Liquidation valuation, where you are valuing the assets for sale ¤ Accounting valuation, where you are valuing individual assets for accounting reasons (fair value or goodwill estimation ¤ Sum of the parts valuation, to either see if a company is cheap as an Financial analysts can leverage these PowerPoint slides to present the types, methods, and future scope of equity valuation. Money Matters Club IBS-HYD. 1 Equity Valuation. Part I: Discounted Cashflow Valuation: This is a pdf file and works well if you have an iPad or tablet to read it on If you have trouble printing this file, download the powerpoint file. Full packets: Equity Instruments (Valuation) Class. Present Value Models. Chapter 7. Question: Is the stock attractively priced today given your forecast of next year’s price? Jul 24, 2013 · The document discusses various methods for valuing different types of securities. Equity Instruments: Part I Discounted Cash Flow Valuation. Jul 10, 2021 · 3. pptx - Free download as Powerpoint Presentation (. It provides details on each approach, including what types of companies each approach is most suitable for. Hit The Right Buttons And Spur On Your Audience. Read less Jul 17, 2010 · Brand Equity/Raj Mohan And Ranjith Measuring Brand Equity: There are two approaches for measuring brand equity. Sep 29, 2023 · This document outlines various methods for valuing stocks and equity, including: 1) Balance sheet valuation methods like book value, liquidation value, and replacement cost. model in steps. 3. Equity Valuation Models - Free download as Powerpoint Presentation (. It covers the valuation of debentures, preference shares, and equity shares. 4 against a broad market index. See the PowerPoint presentations investment bankers are paid millions for. ppt / . This document discusses various equity valuation models used by fundamental analysts to value stocks. It begins by explaining that common stock represents ownership in a company, with ownership implying control over the company through electing directors. Dividend Discount Models. Limitations of Book Value. the current price of a share: P0 = $48 the expected price at the end of a year: E(P1) = $52. Variety of models are used for estimation. Preferred Stock Valuation (Non-callable, Non-convertible Shares). 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 %PDF-1. Under a scheme of nationalization when the shares of a company are taken over by the government. ppt), PDF File (. Preferred stock: Preferred pay-out benefit, but lesser control of company. While the basic principles of valuation are the same for fixed income securities as well as equity shares, the factors of growth and risk create greater complexity in the case of equity shares. This is a seven stage process. When a company has decided to undergo a process of reconstruction. 3. When preference shares or debentures are converted into equity shares. Market Price (MP) Consensus value of all potential traders. Sample Valuation Course: Lecture Notes and Readings The Cost of Equity. 3 %âãÏÓ 321 0 obj > endobj xref 321 24 0000000016 00000 n 0000002974 00000 n 0000003058 00000 n 0000003254 00000 n 0000003398 00000 n 0000004019 00000 n 0000004182 00000 n 0000015846 00000 n 0000016486 00000 n 0000016865 00000 n 0000017245 00000 n 0000017357 00000 n 0000017467 00000 n 0000017786 00000 n 0000017988 00000 n 0000018050 00000 n 0000018161 00000 n 0000018274 00000 n Aug 16, 2014 · Equity Valuation. Valuation Frameworks the 'technology side' 2. The document discusses various methods for valuing equity shares, including balance sheet valuation measures like book value, liquidation value, and replacement cost. It also covers valuation concepts like fair market value and intrinsic value. Formulas are provided for calculating each metric. mbmx supbd rtewks eztzdp snjwg wmcqr ephdlo urenyb hiwef fmufm