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Common Stock Valuation 10-1
Fundamental Analysis ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],Present Value Approach
Required Inputs ,[object Object],[object Object],[object Object],[object Object],[object Object]
Required Inputs ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],Dividend Discount Model
Dividend Discount Model ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],Dividend Discount Model
[object Object],[object Object],[object Object],[object Object],Dividend Discount Model
Dividend Discount Model ,[object Object],[object Object],[object Object],[object Object],[object Object]
Dividend Discount Model ,[object Object],[object Object],[object Object]
Dividend Discount Model ,[object Object],[object Object],[object Object],[object Object],[object Object]
Example: Valuing equity with growth of 30% for 3 years, then a long-run constant growth of 6% D 0  = 4.00   5.20  6.76  8.788  9.315 4.48 5.02 5.63 59.68  P 3  =  9.315 74.81 = P 0   .10 0   k=16% 1 2 3   4 g = 30%  g = 30%  g = 30%   g = 6%
What About Capital Gains? ,[object Object],[object Object],[object Object],[object Object]
Intrinsic Value ,[object Object],[object Object],[object Object],[object Object]
P/E Ratio or  Earnings Multiplier Approach ,[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],P/E Ratio Approach
P/E Ratio Approach ,[object Object],[object Object],[object Object],[object Object]
Understanding the P/E Ratio ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
P/E Ratios and Interest Rates ,[object Object],[object Object],[object Object],[object Object]
Which Approach Is Best? ,[object Object],[object Object],[object Object],[object Object]
Which Approach Is Best? ,[object Object],[object Object],[object Object],[object Object],[object Object]
Other Multiples ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
 

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Common stock valuation

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  • 13. Example: Valuing equity with growth of 30% for 3 years, then a long-run constant growth of 6% D 0 = 4.00 5.20 6.76 8.788 9.315 4.48 5.02 5.63 59.68 P 3 = 9.315 74.81 = P 0 .10 0 k=16% 1 2 3 4 g = 30% g = 30% g = 30% g = 6%
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Editor's Notes

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