تقييم الأسهم وتحليلها
|#||Course Name||Credit Hrs||Prerequisite|
|FIN 616||Equity Valuation and Analysis||3||None|
This course aims to introduce students to security analysis and valuation from both theoretical and empirical perspectives. Students will be provided with a thorough understanding of alternative methods for equity valuation from the perspective of selecting stocks for investment portfolios, offering new issues for sale (initial public offering) and undertaking decisions for merger & acquisition. An opportunity will also be provided to students to use cases to understand the equity valuation process and apply alternative valuation methods to real-time financial data on business corporations. Major topics include: equity valuation process, return concepts, introduction to industry and company analysis, discounted dividend valuation, free cash flow valuation, market-based valuation; price and enterprise value multiples, residual income valuation and private company valuation.
After completing this course, the student will be able to:
- Understand equity valuation: applications and processes.
- Describe different return concepts, industry, company and market analysis for valuing equity and businesses.
- Have necessary knowledge of alternative valuation models including discounted dividend valuation, free cash flow valuation, residual income valuation and peer valuation models.
- Demonstrate analytical, computational and critical thinking skills to solve and interpret cases of equity analysis and valuation of different corporate firms.
- Build cases on equity analysis and valuation using real-life financial data of local business corporations.
- Equity Valuation: Applications and Processes
- Return concepts
- Nike’s case on cost of capital estimation
- Introduction to industry and company analysis
- Industry and company analysis
- Discounted dividend valuation models
- Fee cash flow valuation models
- A case on alternative valuation methods for merger & acquisition
- A case on Netscape IPO
- Market-Based Valuation: Price and Enterprise Value Multiples
- A case on Warren E Buffett, 2005
- Residual income valuation: valuing common equity
- A case on Coke vs PepsiCo: an application of EVA model
- Private company valuation
Equity Asset Valuation by Pinto-Henry-Robinson-Stowe (PHRS), 2nd Edition, John Wiley & Sons, Inc., Hoboken, New Jersey.
Investment Analysis and Portfolio Management by Brown-Reilly (2012), 10th Edition, South-Western Cengage Learning (RB).
- Security Analysis and Business Valuation by Jeffrey C Hooke, 2nd Edition, Wall Street, A Comprehensive Guide to Today’s Valuation Methods.
- Nike, Inc: Cost of Capital, Darden Business Publishing University of Virginia.
- Methods of Valuation for Mergers and Acquisitions, Darden Business Publishing University of Virginia): UN0112 Feb 2009.
- Warren E. Buffett, 2005.
- Valuation of Stocks: Netscape’s Initial Public Offering, Harvard Business School: 9-296-088.
- Understanding Economic Value Added: HBS 9-206-016.
- Managing for Corporate Value Creation: The EVA Model.
- Coke versus Pepsi 2001 (Harvard Case UV0008).