Analysis and Valuation of Equity Investments

In this comprehensive 74 minute video on equity valuation, also called stock valuation, the principles of valuing stock investments using fundamental analysis, technical analysis and comparable multiples are discussed.

The fundamental principles of valuation using the discounted cash flow valuation approach is talked about.

Learn how to factor in the cash dividends that an investor will recieve over the lifetime of owning a perpetual dividend stock. The Gordon growth model for valuing common stock, and how to factor in different phases of growth and terminal value into the value of a stock investment are also discussed.

A detailed analysis of risks of investing in stock and how to calculate the Weighted Average Cost of Capital, and free cash flow from the financial statements of a company are also covered.

This stock valuation video also talks about how financial analysts can calculate a key financial ratio used for equity valuation, the price to earnings ratio, from net profit and the estimated earnings per share.

From a strategic perspective to stock investment and valuation, the stock valuation video speaks to the standard industry and company growth cycle and how competitive forces may influence a company’s performance and hence fundamental business valuation.

A brief discussion on the pros and cons of fundamental analysis versus technical analysis for equity valuation is touched upon, and the presenter then goes on to provide a primer into the basics of using technical analysis in stock investing.

Lastly, using comparable market multiples and financial ratios to value the attractiveness of a stock for investment is spoken to.

All in all, an excellent primer into stock valuation for any financial modeling and analysis project.

Presented by Brian Zen, Ph.D., CFA.


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