Finance

1. Valuing Stocks
BY:NIDA AFZAL

2. 1.1, Stocks and Stock Market
 Common stock
 Primary market
 Initial public offering
 Secondary market
 Stock Market
 Dividend
 Dividend yield
 Price-earnings(P/E)multiple

3. 1.2 Values related to stocks
• Book Values
• Liquidation values
• Market Value

4. 1.3,Valuing Common Stocks
• Cash dividend
• Capital gain
• Expected rate of return
• Dividend discount model

5. 1.4,Estimating dividend
• Zero growth
• Constant growth
• Supernormal growth

6. 1.5,Growth and Income stocks
• Payout ratio
• Plowback ratio
• Present value of growth opportunites
• Method1;technical analysis
• Method2;fundamental analysis
• A theory to fit the facts