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CFA level I-Equity Valuation and Analysis- Part I
 
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FinTree website link: http://www.fintreeindia.com FB Page link :http://www.facebook.com/Fin... We love what we do, and we make awesome video lectures for CFA and FRM exams. Our Video Lectures are comprehensive, easy to understand and most importantly, fun to study with! This Video lecture was recorded by our popular trainer for CFA, Mr. Utkarsh Jain, during one of his live CFA Level I Classes in Pune (India). This video lecture covers following key area's: 1. Evaluation of a security given its current rate market price and a value estimate , is overvalued, fairly valued or undervalued by the market. 2. Major categories of equity valuation models. 3. Rationale for using present-value of cash flow models to value equity & explains 4. dividend discount and free-cash-flow-to-equity models. 5. Calculation of intrinsic value of a non-callable , non-convertible preferred stock. 6. Calculation and interpret the intrinsic value of an equity security based on the Gordon (constant) growth dividend discount model or a two-stage dividend discount model, as appropriate. 7. Companies for which the constant growth or a multistage dividend discount model is appropriate. 8. Rationale for using price multiples to value equity and distinguish between multiples based on comparables versus multiples based on fundamentals. 9. Calculation and interpretation of price to earnings, price to an estimate of operating cash flow, price to sales, and price to book value. 10. The use of enterprise value multiples in equity valuation and demonstrate the use of enterprise value multiples to estimate equity value. 11. Asset-based valuation models and the use of asset-based models to calculate equity value. 12. Advantages and disadvantages of each category of valuation model. #CFA #FRM #FinTree
Views: 85119 FinTree
Equity Analysis part 1
 
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Views: 60599 Rahul Malkan
A Brief Introduction to Equity Valuation
 
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Professor David Hillier, University of Strathclyde; Short videos for students of my Finance Textbooks, Corporate Finance and Fundamentals of Corporate Finance Website: www.david-hillier.com Check out my Amazon page: https://www.amazon.co.uk/s/ref=dp_byline_sr_book_1?ie=UTF8&text=David+Hillier&search-alias=books-uk&field-author=David+Hillier&sort=relevancerank
Views: 5826 David Hillier
Equity Analysis and Valuation Video Notes
 
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https://markmeldrum.selz.com/categories/all or here: https://gumroad.com/markmeldrum REQUIRED DISCLAIMER: CFA Institute does not endorse, promote, or warrant the accuracy or quality of the products or services offered by Mark Meldrum. CFA ® are trademarks owned by CFA Institute.
Views: 3535 Mark Meldrum
38.  CFA Level 1 Equity Valuation - Concepts and Basic Tools - LO1 and LO2
 
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All 10 Level 1 topics are available on this channel. If you like what I am doing, then be a friend: 1. Click subscribe so that you will be notified of all new uploads 2. Click like (the more likes these videos get, the better they show up in search results) 3. Don't click dislike!! That does not help me improve the content and delivery. If you don't like something, leave a comment, politely of course. 4. Click Share - help other find what you have found. REQUIRED DISCLAIMER: CFA Institute does not endorse, promote, or warrant the accuracy or quality of the products or services offered by Mark Meldrum. CFA ® are trademarks owned by CFA Institute.
Views: 12766 Mark Meldrum
CFA Level I Equity Valuation Video Lecture by Mr. Arif Irfanullah Part 1
 
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This CFA Level I video covers concepts related to: • Overview • Equity Valuation Models • Dividend Discount Model • Free Cash Flow to Equity • Estimating Required Rate of Return and Growth Rate For more updated CFA videos, Please visit www.arifirfanullah.com.
Views: 68685 IFT
Valuation Methods
 
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When valuing a company as a going concern there are three main valuation methods used by industry practitioners: (1) DCF analysis, (2) comparable company analysis, and (3) precedent transactions. These are the most common methods of valuation used in investment banking, equity research, private equity, corporate development, mergers & acquisitions (M&A), leveraged buyouts (LBO) and most areas of finance. Click here to learn more about this topic: https://corporatefinanceinstitute.com/resources/knowledge/valuation/valuation-methods/
Equity valuation- Finance Class by Palak Rajani
 
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Equity valuation This video explains Dividend Discount Model for Equity Valuation. It covers single period perpetuity valuation of Equity share with growth and zero growth. It also covers multi period (two stage growth model) for equity valuation. For more details on : Free cash flow method, Multiplier Approach calculation , H Model..... You may contact us at : [email protected] Video recorded & edited by Exuberant StudioArt ([email protected], 9819143552), Mumbai
Views: 7265 N
Equity Valuation Model (Stock)
 
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A simple equity valuation model using Excel.
Views: 21543 Lou Gattis
How to value a company using discounted cash flow (DCF) - MoneyWeek Investment Tutorials
 
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Every investor should have a basic grasp of the discounted cash flow (DCF) technique. Here, Tim Bennett introduces the concept, and explains how it can be applied to valuing a company.
Views: 511228 MoneyWeek
Valuation and Discounted Cash Flow Analysis (DCF)
 
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Here's a quick overview on Valuation. We also construct an entire discounted cash flow analysis on WalMart in conjunction with my book Financial Modeling and Valuation: A Practical Guide to Investment Banking and Private Equity http://www.amazon.com/Financial-Modeling-Valuation-Practical-Investment/dp/1118558766/ref=sr_1_8?ie=UTF8&qid=1422553204&sr=8-8&keywords=valuation
Views: 89970 Paul Pignataro
CFA Level II-Equity Valuation : Application and Processes Part I( of 2)
 
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FinTree website link: http://www.fintreeindia.com FB Page link :http://www.facebook.com/Fin... This series of video covers followings key areas: • Valuation and intrinsic value and explain sources of perceived • mispricing • going concern assumption and contrast a going concern • value to a liquidation value • definitions of value and justify which definition of value is • most relevant to public company valuation • applications of equity valuation • addressed in conducting an industry and competitive analysis • absolute and relative valuation models and describe examples of each type of model • sum-of-the-parts valuation and conglomerate discounts • broad criteria for choosing an appropriate approach for valuing a given company • realized holding period return, expected holding period return, • required return, return from convergence of price to intrinsic value, • discount rate, and internal rate of return • interpret an equity risk premium using historical and forward-looking estimation approaches • capital asset pricing model • Fama-French model • Pastor-Stambaugh model • macro-economic multifactor models • the build-up method • beta estimation for public companies • thinly traded public companies, and nonpublic companies • strengths and weaknesses of methods used to estimate the required return on an equity investment • international considerations in required return estimation • the weighted average cost of capital for a company We love what we do, and we make awesome video lectures for CFA and FRM exams. Our Video Lectures are comprehensive, easy to understand and most importantly, fun to study with! This Video lecture was recorded by our popular trainer for CFA, Mr. Utkarsh Jain, during one of his live CFA Level I I Classes in Pune (India). #CFA #FRM #FinTree
Views: 14955 FinTree
SFM New Course - Equity Valuation Part 1
 
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Pocket Book Revision Lecture For New Course Book Available At- www.rahulmalkan.com
Views: 5547 Rahul Malkan
Equity Analysis & Valuation | Fundamental Analysis | Investment Return and Investment Risks | Part 1
 
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Strategic Financial Management : Chartered Accountancy; Equity Analysis & Valuation | Fundamental Analysis | Investment Return and Investment Risks | Part 1; Briefing : 00:00:39 - 00:01:40 Equity Analysis & Valuation - Equity Analysis - Equity Valuation - Other Securities Topic Covered : 1. Fundamental Analysis : 00:01:40 - 00:06:21 - Meaning - Rules - Strengths of Fundamental Analysis 00:06:22 - 00:09:12 - Weaknesses of Fundamental Analysis : 00:09:12 - 00:12:26 2. Investment Return and Investment Risks : 00:12:26 - 00:24:25 - Meaning - Factors - Formula 3. Overview of "Value" Terms : 00:24:25 - 00:26:25 - Book Value - Market Value - Intrinsic Value Video by Edupedia World (www.edupediaworld.com), Free Online Education; Download our App : https://goo.gl/1b6LBg Click here, https://www.youtube.com/playlist?list=PLJumA3phskPGZ7QPDmzNYr-fJDi5BjW6x for more videos on Strategic Financial Management; All Rights Reserved.
Views: 642 Edupedia World
CA Final | SFM | Security Analysis | Introduction to Equity Valuation | Part 2 | 2017
 
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CFA | FRM | SFM | Excel Live Classes | Videos Available Globally For Details: www.aswinibajaj.com WhatsApp: +91 9830497377 or https://api.whatsapp.com/send?phone=919830497377&text=Want%20to%20know%20more%20about%20classes & we shall get back to you. E-mail: [email protected] Hope you had a great learning experience! Do Like and Subscribe! And check our other videos on Finance (CFA, FRM, SFM), Resume making, Career options, etc. Click to access playlist. https://www.youtube.com/channel/UCyt8himITSzS0U9ktWIxc8g/playlists Thank you.
Views: 6833 ASWINI BAJAJ
WACC, Cost of Equity, and Cost of Debt in a DCF
 
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In this WACC and Cost of Equity tutorial, you'll learn how changes to assumptions in a DCF impact variables like the Cost of Equity, Cost of Debt. By http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers" You'll also learn about WACC (Weighted Average Cost of Capital) - and why it is not always so straightforward to answer these questions in interviews. Table of Contents: 2:22 Why Everything is Interrelated 4:22 Summary of Factors That Impact a DCF 6:37 Changes to Debt Percentages in the Capital Structure 11:38 The Risk-Free Rate, Equity Risk Premium, and Beta 12:49 The Tax Rate 14:55 Recap and Summary Why Do WACC, the Cost of Equity, and the Cost of Debt Matter? This is a VERY common interview question: "If a company goes from 10% debt to 30% debt, does its WACC increase or decrease?" "What if the Risk-Free Rate changes? How is everything else impacted?" "What if the company is bigger / smaller?" Plus, you need to use these concepts on the job all the time when valuing companies… these "costs" represent your opportunity cost from investing in a specific company, and you use them to evaluate that company's cash flows and determine how much the company is worth to you. EX: If you can get a 10% yield by investing in other, similar companies in this market, you'd evaluate this company's cash flows against that 10% "discount rate"… …and if this company's debt, tax rate, or overall size changes, you better know how the discount rate also changes! It could easily change the company's value to you, the investor. The Most Important Concept… Everything is interrelated - in other words, more debt will impact BOTH the equity AND the debt investors! Why? Because additional leverage makes the company riskier for everyone involved. The chance of bankruptcy is higher, so the "cost" even to the equity investors increases. AND: Other variables like the Risk-Free Rate will end up impacting everything, including Cost of Equity and Cost of Debt, because both of them are tied to overall interest rates on "safe" government bonds. Tricky: Some changes only make an impact when a company actually has debt (changes to the tax rate), and you can't always predict how the value derived from a DCF will change in response to this. Changes to the DCF Analysis and the Impact on Cost of Equity, Cost of Debt, WACC, and Implied Value: Smaller Company: Cost of Debt, Equity, and WACC are all higher. Bigger Company: Cost of Debt, Equity, and WACC are all lower. * Assuming the same capital structure percentages - if the capital structure is NOT the same, this could go either way. Emerging Market: Cost of Debt, Equity, and WACC are all higher. No Debt to Some Debt: Cost of Equity and Cost of Debt are higher. WACC is lower at first, but eventually higher. Some Debt to No Debt: Cost of Equity and Cost of Debt are lower. It's impossible to say how WACC changes because it depends on where you are in the "U-shaped curve" - if you're above the debt % that minimizes WACC, WACC will decrease. Otherwise, if you're at that minimum or below it, WACC will increase. Higher Risk-Free Rate: Cost of Equity, Debt, and WACC are all higher; they're all lower with a lower Risk-Free Rate. Higher Equity Risk Premium and Higher Beta: Cost of Equity is higher, and so is WACC; Cost of Debt doesn't change in a predictable way in response to these. When these are lower, Cost of Equity and WACC are both lower. Higher Tax Rate: Cost of Equity, Debt, and WACC are all lower; they're higher when the tax rate is lower. ** Assumes the company has debt - if it does not, taxes don't make an impact because there is no tax benefit to interest paid on debt.
What's in an Equity Research Report?
 
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In this tutorial, you'll learn what goes into an equity research report, including how it differs from a stock pitch in terms of structure and argument, the main sections of the reports, and how you might write your own reports. http://www.mergersandinquisitions.com/equity-research-report/ Table of Contents: 1:43 Part 1: Stock Pitches vs. Equity Research Reports 6:00 Part 2: The 4 Main Differences in Research Reports 12:46 Part 3: Sample Reports and the Typical Sections 20:53 Recap and Summary Part 1: Stock Pitches vs. Equity Research Reports The main difference is that equity research reports are like "watered-down" stock pitches: you still recommend for or against investment in a public company, but your views are weaker, "Sell" recommendations are rare, and you spend a lot more time describing the company and its operations and financials. By contrast, in hedge fund stock pitches you take more extreme views and spend more time explaining how your views differ from those of the market as a whole. Part 2: The 4 Main Differences in Research Reports 1) There's More Emphasis on Recent Results and Announcements 2) Far-Outside-the-Mainstream Views Are Less Common 3) Research Reports Give "Target Prices" Rather Than Target Price Ranges 4) The Investment Thesis, Catalysts, and Risk Factors Are "Looser" Part 3: Sample Reports and the Typical Sections The main sections of a report are as follows: Page 1: Update, Rating, Price Target, and Recent Results The first page of an "Update" report states the bank's recommendation (Buy, Hold, or Sell, sometimes with slightly different terminology), and gives recent updates on the company. A specific "target price" must be based on specific multiples and specific assumptions in a DCF or DDM. So with Jazz, we explain that the $170.00 target is based on 20.7x and 15.3x EV/EBITDA multiples for the comps, and a discount rate of 8.07% and Terminal FCF growth rate of 0.3% in the DCF. Next: Operations and Financial Summary Next, you'll see a section with lots of graphs and charts detailing the company's financial performance, market share, and important metrics and ratios. For a pharmaceutical company like Jazz, you might see revenue by product, pricing and # of patients per product per year, and EBITDA margins. For a commercial bank like Shawbrook, you might see loan growth, interest rates, interest income and net income, and regulatory capital figures such as the Common Equity Tier 1 (CET 1) and Tangible Common Equity (TCE) ratios: This section of the report explains how the research analyst/associate forecast the company's performance and came up with the numbers used in the valuation. Valuation The valuation section is the one that's most similar in a research report and a stock pitch. In both fields, you explain how you arrived at the company's implied value, which usually involves pasting in a DCF or DDM analysis and comparable companies and transactions. The methodologies are the same, but the assumptions might differ substantially. In research, you're also more likely to point to specific multiples, such as the 75th percentile EV/EBITDA multiple, and explain why they are the most meaningful ones. Investment Thesis, Catalysts, and Risks This section is short, and it is more of an afterthought than anything else. We do give reasons for why these companies might be mispriced, but the reasoning isn't that detailed and it's not linked to specific share prices. Banks present Investment Risks mostly so they can say, "Well, we warned you there were risks and that our recommendation might be wrong." http://www.mergersandinquisitions.com/equity-research-report/
Discounted Cash Flow (Part 1 of 2): Valuation
 
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In this vide, I discuss the Discounted Cash Flow, or DCF, Model as an approach to estimating the intrinsic value of a company's stock. I review the theoretical motivation behind the model and discuss the model's required inputs, assumptions, and forecasts. I walk through building a basic implementation of the DCF model in Microsoft Excel. Part 2 of the video (http://youtu.be/ijpPg8eAhv4) shows the application of the basic Excel DCF model to a real firm, including illustrations of where to find data to support the inputs, assumptions, and forecasts. The music is "Gnomone a Piacere" by MAT64 (http://www.mat64.org/).
Views: 180534 Jason Greene
Private Company Valuation
 
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In this tutorial, you'll learn how private companies are valued differently from public companies, including differences in the financial statements, the public comps, the precedent transactions, and the DCF analysis and WACC. Get all the files and the textual description and explanation here: http://www.mergersandinquisitions.com/private-company-valuation/ Table of Contents: 1:29 The Three Types of Private Companies and the Main Differences 6:22 Accounting and 3-Statement Differences 12:04 Valuation Differences 16:14 DCF and WACC Differences 21:09 Recap and Summary The Three Type of Private Companies To master this topic, you need to understand that "private companies" are very different, even though they're in the same basic category. There are three main types worth analyzing: Money Businesses: These are true small businesses, owned by families or individuals, with no aspirations of becoming huge. They are often heavily dependent on one person or several individuals. Examples include restaurants, law firms, and even this BIWS/M&I business. Meth Businesses: These are venture-backed startups aiming to disrupt big markets and eventually become huge companies. Examples include Kakao, WhatsApp, Instagram, and Tumblr – all before they were acquired. Empire Businesses: These are large companies with management teams and Boards of Directors; they could be public but have chosen not to be. Examples include Ikea, Cargill, SAS, and Koch Industries. You see the most differences with Money Businesses and much smaller differences with the other two categories. The main differences have to do with accounting and the three financial statements, valuation, and the DCF analysis. Accounting and 3-Statement Differences Key adjustments might include "normalizing" the company's financial statements to make them compliant with US GAAP or IFRS, classifying the owner's dividends as a compensation expense on the Income Statement, removing intermingled personal expenses, and adjusting the tax rate in future periods. These points should NOT be issues with Meth Businesses (startups) or Empire Businesses (large private companies) unless the company is another Enron. Valuation Differences The valuation of a private company depends heavily on its purpose: are you valuing the company right before an IPO? Or evaluating it for an acquisition by an individual or private/public buyer? These companies might be worth very different amounts to different parties – they *should* be worth the most in IPO scenarios because private companies gain a larger, diverse shareholder base like that. You'll almost always apply an "illiquidity discount" or "private company discount" to the multiples from the public comps; a 10x EBITDA multiple is great, but it doesn't hold up so well if the comps have $500 million in revenue and your company has $500,000 in revenue. This discount might range from 10% to 30% or more, depending on the size and scale of the company you're valuing. Precedent Transactions tend to be more similar, and you don't apply the same type of huge discount there for larger private companies. You may see more "creative" metrics used, such as Enterprise Value / Monthly Active Users, especially for private mobile/gaming/social companies. DCF and WACC Differences The biggest problems here are the Discount Rate and the Terminal Value. The Discount Rate has to be higher for private companies, but you can't calculate it in the traditional way because private companies don't have Betas or Market Caps. Instead, you often use the industry-average capital structure or average from the comparables to determine the appropriate percentages, and then calculate Beta, Cost of Equity, and WACC based on that. There are other approaches as well – use the firm's optimal capital structure, create a giant circular reference, or use earnings volatility or dividend growth rates – but this is the most realistic one. You use this approach for all private companies because they all have the same problem (no Market Cap or Beta). You'll also have to discount the Terminal Value, but this is mostly an issue for Money Businesses because of their dependency on the owner and key individuals. You could heavily discount the Terminal Value, use the company's future Liquidation Value AS the Terminal Value, or assume the company stops operating in the future and skip Terminal Value entirely. Regardless of which one you use, Terminal Value will be substantially lower for this type of company. The result is that the valuation will be MOST different for a Money Business, with smaller, but still possibly substantial, differences for Meth Businesses and Empire Businesses. http://www.mergersandinquisitions.com/private-company-valuation/
Stock Analysis and Valuation: The Five Step Research Process - Gary Mishuris
 
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How do you perform company analysis and stock valuation once you have identified an attractive opportunity? In this video I explain my Five Step Research Process and how I use it to perform company due diligence and security analysis. The Five Step Research Process consists of the following steps: Step 1: Company Quality Assessment Company quality is based on the quality of the business, the management team and the balance sheet. Business quality: How structurally attractive is the industry? How strong is the company's competitive advantage? Is it getting stronger or weaker? Management quality: How competent is the management team at operations and capital allocation? How aligned are their incentives with the shareholders? Balance sheet quality: Is the balance sheet strong enough to withstand temporary adversity without the company being forced to raise capital on unattractive terms? Step 2: Analysis of Key Economic Variables This step aims to: 1. Identify the handful of economic variables that will have the greatest impact on the business’s long-term economics, and 2. Estimate a reasonable range of outcomes for each variable. Step 3: Financial Modeling The third step of the process begins where the second step ended. Having identified the key economic variables and a reasonable range of values for each, I use that analysis to model the company’s income statement, balance sheet and cash flow statement, and then create three scenarios: worst case, base case and best case. Step 4: Valuation My basic valuation tool for stocks is the discounted cash flow model (DCF) of equity free cash flows forecasted in the prior step. I use the same discount rate – 10% – for all companies and all scenarios. The DCF can be an imperfect tool. A reasonable criticism is that it is overly sensitive to small input changes and to user manipulation of assumptions. To guard against these, I cross-check DCF-derived values against other measures such a valuation multiples (e.g. normalized P/E, EV/EBITA) and private market transactions. Step 5: Behavioral Checklist Before investment analysis is complete, I apply a checklist designed to identify things that I may have missed as well as behavioral biases that may have influenced my analysis. This is a dynamic list; it has been evolving over time, reflecting lessons learned from past mistakes made by me and by other investors. Doing thorough fundamental analysis and valuation work is an important part of any value investing process. The Five Step Research Process helps ensure a systematic and repeatable approach that helps minimize the impact of behavioral biases. If you want an example of how I apply this process, please check out a recent article that I wrote for Forbes titled "Lyft IPO from a Value Investor's Perspective" https://www.forbes.com/sites/garymishuris/2019/03/25/lyft-ipo-from-a-value-investors-perspective/ Please SUBSCRIBE to my channel above to get regular content that can help you make better investment decisions. For more resources, check out the articles that I write at the Behavioral Value Investor: https://behavioralvalueinvestor.com/ If you want to learn more about Silver Ring Value Partners, you can find more information here: https://silverringvaluepartners.com/ Connect with me on LinkedIn: https://www.linkedin.com/in/gary-mishuris-cfa-7567902/ Follow me on Quora where I regularly answer questions: https://www.quora.com/profile/Gary-Mishuris Send me an e-mail: [email protected]
Views: 1695 Gary Mishuris
Equity Valuation [ENG]
 
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In this lecture, we cover the following main company valuation methodologies: - Comparable Companies' Analysis - DCF Model (Discounted Cash Flow) - Net Asset Value Model Link to the file in use: https://drive.google.com/open?id=1aLx2H5MFi-fyspchGuW0R-55WL8F6Urc How, when, and where to use price multiples and a real company valuation case - find it all in this video! Наш веб-сайт: https://sfcourses.com Наше сообщество в VK: https://vk.com/sfeducation Наше сообщество в FB: https://www.facebook.com/sfeducationru Мы в Telegram: https://t.me/societe_financiers Наш Instagram: https://www.instagram.com/sf_education/ Наши статьи на Seeking Alpha: https://seekingalpha.com/user/39657976 Мы в LinkedIn: https://www.linkedin.com/company/societe-financiers/
Views: 858 SF Education
What is Valuation and what are the valuation methods? | Stock market | Hindi
 
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Here is the first part of the valuation series. In this video, you get to know about the basic valuation and also the various method to value a company. So through this video, you get the basic knowledge of the valuation. To learn more about stock market, finance and business, visit our website: https://www.finnovationz.com Click here to watch our best video on basics of stock market: https://youtu.be/zxKURXHy6es Click here to subscribe our best fundamental analysis course: http://bit.ly/fundamentaledu To open a demat account, compare stock brokerage firms here: https://www.finnovationz.com For more feed about the valuation you can follow us on our social media sites: Graphics: www.freepik.com Facebook: www.facebook.com/finnovationz Instagram: www.instagram.com/finnovationzindia Twitter: www.twitter.com/finnovationz555 Quora: www.quora.com/Finnovationz-2
Views: 52124 FinnovationZ.com
2015- CFA Level 1-Equity - Equity Analysis & Valuation Part I (of 6)
 
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FinTree website link: http://www.fintreeindia.com FB Page link :http://www.facebook.com/Fin... We love what we do, and we make awesome video lectures for CFA and FRM exams. Our Video Lectures are comprehensive, easy to understand and most importantly, fun to study with! This Video lecture was recorded by our popular trainer for CFA, Mr. Utkarsh Jain, during one of his live CFA Level I Classes in Pune (India).
Views: 7332 FinTree
Valuation of securities: equity shares (COM)
 
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Subject:Commerce Paper:Security Analysis and Portfolio Management
Views: 2485 Vidya-mitra
Valuation using Multiples
 
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This video explains how to value a firm using multiples of comparable firms. Whereas other valuation techniques (such as the Dividend Discount Model, Total Payout Model, or Discounted Cash Flow Model) rely on future cash flows to value a firm, valuing a firm with firms does not require the forecasting of cash flows and is performed using multiples (such as the P/E ratio) of other firms to determine the value of the firm in question. This video provides a comprehensive example to illustrate how a firm is valued using the P/E ratio of a comparable firm. Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like us on Facebook, visit https://www.facebook.com/Edspira Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Facebook, visit https://facebook.com/Prof.Michael.McLaughlin To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin
Views: 31523 Edspira
How valuation applies to private equity investments
 
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Programme Director Andreas T. Angelopoulos discusses how valuation applies to private equity investments, and the way in which we approach this key theme in the Oxford Chicago Valuation Programme. Find out more on the programme: http://www.sbs.oxford.edu/valuation
How to value a company using multiples - MoneyWeek Investment Tutorials
 
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For investors wanting to do a quick and dirty check on whether a firm is cheap or expensive, multiples can be helpful. As part of his short series on valuing companies, Tim Bennett explains why and how to go about using them.
Views: 145863 MoneyWeek
CA Final SFM | Equity Valuation | Dividend Discount Model
 
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http://www.khetaneducation.com https://www.facebook.com/KhetanEducation SFM CA Final Demo Lecture - This video is an endeavor to help students with making informed choice while selecting the right faculty and guide, touch some basic and advanced concepts of SFM and problem solving techniques related to the same. This topic is an integral part of strategic financial management for CA Final Group I (New n Old Syllabus). The Institute (ICAI) tests students ability to understand concepts and apply them to practical problems. It is highly recommended to go through the Practice Manual, Study Material and Syllabus as prescribed by the Institute. SFM Full Course and Fast Track Course (Crash Course) available in Pen Drive and through Google Drive Link.
Views: 4678 Khetan Education
DCF, Discounted Cash Flow Valuation in Excel Video
 
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For details, visit: http://www.financewalk.com DCF, Discounted Cash Flow Valuation in Excel Video Discounted Cash Flow (DCF) Valuation DCF valuation can be defined as: "A valuation method used to estimate the attractiveness of an investment opportunity. Discounted cash flow (DCF) analysis uses future free cash flow projections and discounts them (most often using the weighted average cost of capital-which reflects the riskiness of the cash flows) to arrive at a present value, which is used to evaluate the potential for investment. If the value arrived at through DCF analysis is higher than the current cost of the investment, the opportunity may be a good one." DCF valuation comes handy when there are no comparable companies available in the market. DCF involves some steps which takes into account firm's capital structure, inflation rate, growth of the economy, growth of the company, riskiness of the project, working capital management, capital expenditure required in future years etc. Inputs to Discounted Cash Flow Models • Discount Rates -- Cost of Debt+Cost of Equity • Expected Cash Flows -- FCFF , FCFE , Dividends • Expected Growth Rate Steps in DCF Step 1 -- Forecast/Measure Free Cash Flow Step 2 -- Estimate WACC/Cost of Equity Step 3 -- Use WACC to discount FCF Step 4 -- Estimate Terminal (Residual) Value Step 5 -- Use WACC to discount Terminal Value Step 6 - Estimate Total Present Value of FCF Step 7 -- Add value of Non-operating Assets Step 8 -- Subtract value of Liabilities assumed Step 9 -- Calculate Value of Common stock
Views: 172340 Avadhut Nigudkar
CFA Level 2 Industry and Company Analysis in Equity Valuation
 
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CFA level 2 training on Equity Valuation by Vamsidhar Ambatipudi(IIM Alumnus) at pacegurus
Views: 1192 Vamsidhar Ambatipudi
Comparable Company Analysis (CCA) Tutorial
 
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In this tutorial, you’ll learn all about Comparable Company Analysis (CCA), also known as “Public Comps” or “Comps” – including why it works, what it tells you, and how to complete the process efficiently without access to expensive subscription services. https://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers" Table of Contents: 1:28 What Does “Comparable Company Analysis” Mean? 3:21 How Does the Process Work? 13:09 How Can You Complete a Comparable Company Analysis Cheaply and Quickly? 17:24 What Makes This Harder in Real Life? 19:26 Recap and Summary Resources: https://youtube-breakingintowallstreet-com.s3.amazonaws.com/107-21-Comparable-Company-Analysis.xlsx https://youtube-breakingintowallstreet-com.s3.amazonaws.com/107-21-Comparable-Company-Analysis-Slides.pdf Lesson Outline: The basic idea is that you calculate a company’s “Implied Value” – what it should be worth – based on what other, similar companies are worth. For example, Company A has an Enterprise Value of $1,000, with an EBITDA of $100 and, therefore, an EV / EBITDA of 10x. Other, similar companies in the market have EV / EBITDA multiples between 11x and 13x. Therefore, Company A should also trade at an EV / EBITDA of 11x to 13x, and its Enterprise Value should be between $1,100 and $1,300. Unlike a DCF, which is mostly based on your views of Company A and its long-term prospects, Comparable Company Analysis (“CCA”) is based on the market’s views of this industry. It’s a supplemental methodology since its usefulness depends on how correct the market is. The Process To value a company with CCA, follow these steps: Step 1: Select an appropriate set of comparable public companies. Step 2: Determine the metrics and multiples you want to use. Step 3: Calculate the metrics and multiples for all the companies. Step 4: Apply the median or 25th or 75th percentile multiples from the set to your company to estimate its Implied Equity Value and Enterprise Value. You normally screen companies by geography, industry, and financial “size,” and you aim for around 5-10 companies in the set. An example screen would be “U.S.” for geography, “Steel Manufacturers” for industry, and “revenue between $1 billion and $20 billion” for size. You want the companies to have similar Discount Rates and Cash Flows so that differences in the multiples come from differences in Growth Rates. Normally, you want 1 sales-based metric and 1-2 profitability-based metrics and their corresponding multiples, over both historical and projected periods. Examples might be Revenue, EV / Revenue, and Revenue Growth; EBITDA, EV / EBITDA, and EBITDA Growth; and Net Income, P / E, and Net Income Growth. You calculate each company’s Equity Value and Enterprise Value first, get the historical figures from annual and quarterly reports, and get the projected figures from online sources such as Finviz or Zacks or equity research reports. Then, you calculate the min, 25th percentile, median, 75th percentile, and max for each multiple and multiply them by the appropriate company figures (e.g., LTM EBITDA by the median LTM EV / EBITDA multiple from the comparables). You then back into Implied Equity Value, if necessary, and divide by the share count to calculate the Implied Share Price. Completing the Analysis Quickly and Cheaply You can use Finviz, Zacks, or Motley Fool to find companies and basic financial information. Search by the name of the company you’re valuing on these sites and then click through to “Industry” section to find peers. Click through to “Financial Highlights” or “Statements” to find the projected numbers, and for EBITDA and similar metrics, make estimates by applying the projected EPS growth rate to the historical EBITDA figures to calculate projected EBITDA. Real-Life Complexities This analysis is often more complicated and time-consuming in real life because you may have to search through each company’s filings manually and look for the financials, you might have to determine whether or not an expense is non-recurring, and you may have to “calendarize” the financials if, for example, one company’s fiscal year ends on June 30th but another’s ends on September 30th.
13.  CFA Level 1 Equity Analysis and Valuation Reading 47 LO3 LO4 and LO5 Part 1
 
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REQUIRED DISCLAIMER: CFA Institute does not endorse, promote, or warrant the accuracy or quality of the products or services offered by Mark Meldrum. CFA ® are trademarks owned by CFA Institute.
Views: 8135 Mark Meldrum
2017 Level I CFA Equity: Equity Valuation - Summary
 
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CFA Video Lectures by IFT For more videos, notes, practice questions, mock exams and more visit: http://www.ift.world/ Facebook: facebook.com/CFA.Trainer
Views: 9998 IFT
2015- CFA Level 1-Equity - Equity Analysis & Valuation Part VI (of 6)
 
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FinTree website link: http://www.fintreeindia.com FB Page link :http://www.facebook.com/Fin... We love what we do, and we make awesome video lectures for CFA and FRM exams. Our Video Lectures are comprehensive, easy to understand and most importantly, fun to study with! This Video lecture was recorded by our popular trainer for CFA, Mr. Utkarsh Jain, during one of his live CFA Level I Classes in Pune (India).
Views: 5197 FinTree
[Hindi] Fundamental Analysis Basics  1-  Learn Stock Valuation , PE ratio  of Different Sectors
 
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Hello Friend , this video is requested by many people asking about how to arrive at a stock Valuation for Long term investing Using Fundamental Analysis. I also explain why different sectors have different PE ratio and how to compare PE ratio for stocks in same sector. Please like , share and subscribe. Email : in[email protected] Whatsapp : 9838479931 Open best Trading and Demat account -Lowest Brokerage Zerodha or Upstox Trading account (Flat 20rs Brokerage) with us and enjoy Multiple benefits worth 10000 rupees Free !! 1:Free Live Intraday market Calls for educational Purpose . 2:Intraday Training Webinar on Selecting Stocks for intraday. 3:Access to Screener to select stocks for intraday for 6 months 4:Zerodha Pi Stock selection Alert Codes(For Zerodha accounts). UPSTOX :Click below link to open account and get benefits. Remember use link below only! To open , click https://upstox.com/open-demat-account/?f=dlmk Zerodha: Click below link to open account and get benefits. Remember use link below only! To open, click https://zerodha.com/open-account?c=ZMPXXL Website : www.jaanoaurseekho.com Training: https://jaanoaurseekho.com/stock-market-training Screener: https://jaanoaurseekho.com/intraday-realtime-stock-screener/ Full Video on how to open Zerodha account instantly - https://www.youtube.com/watch?v=l2RbKniOQBg Full Video on how to open upstox account instantly - https://youtu.be/s6Mqd5yPOJs
Views: 94512 Jaano Aur Seekho
The LBO Model: Learn to Value Any Business Like a Private Equity Pro
 
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Jon Taylor of Stanton Park Advisors (www.stantonparkllc.com) explains how to use a leverage buyout (LBO) model to value a business. The LBO model template can be downloaded at www.stantonparkllc.com in the blog section.
Views: 38149 Jon Taylor
2015- CFA Level 1-Equity - Equity Analysis & Valuation Part II(of 6)
 
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FinTree website link: http://www.fintreeindia.com FB Page link :http://www.facebook.com/Fin... We love what we do, and we make awesome video lectures for CFA and FRM exams. Our Video Lectures are comprehensive, easy to understand and most importantly, fun to study with! This Video lecture was recorded by our popular trainer for CFA, Mr. Utkarsh Jain, during one of his live CFA Level I Classes in Pune (India).
Views: 7050 FinTree
CIFA - EQUITY INVESTMENT ANALYSIS - EQUITY VALUATION ANALYSIS
 
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CLICK HERE FOR FULL VIDEO http://www.manifestedpublishers.com and start learning
CFA Level II: Alternative Investments:Private Equity Valuation- Part I  (of 3)
 
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Video recorded during a live classroom session of CFA Level II.
Views: 12522 FinTree
Bond Valuation part 1
 
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Views: 135500 Rahul Malkan
Equity Analysis & Valuation | Value Added Approaches [EVA, SVA, MVA & Chop Shop] | Part 13
 
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Strategic Financial Management : Chartered Accountancy; Equity Analysis & Valuation | Value Added Approaches [EVA, SVA, MVA & Chop Shop] | Part 13; ~ Equity Analysis & Valuation (Continuation....) Briefing : 00:00:08 - 00:01:25 Topic Covered : 1. Value Added Approaches :- 00:01:25 - 00:03:24 - Summary with the help of an Example a. Economic Value Added (EVA) b. Shareholder Value Added (SVA) c. Market Value Added d. Chop Shop Approach * a. Economic Value Added (EVA) : 00:04:47 - 00:11:02 - Summary - Calculation - Example * b. Share Holder Value Added (SVA) : 00:11:02 - 00:15:36 - Summary - Difference between Share Holder Value Added and Economic Value Added * c. Market Value Added : 00:15:46 - 00:19:08 * d. Chop Shop Approach : 00:19:12 - 00:25:38 Video by Edupedia World (www.edupediaworld.com), Free Online Education; Download our App : https://goo.gl/1b6LBg Click here, https://www.youtube.com/playlist?list=PLJumA3phskPGZ7QPDmzNYr-fJDi5BjW6x for more videos on Strategic Financial Management; All Rights Reserved.
Views: 708 Edupedia World
Relative Valuation, Comparable Company Analysis
 
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For details, visit: http://www.financewalk.com Relative Valuation, Comparable Company Analysis: Relative Valuation What is Relative Valuation In relative valuation,we compare a stock's valuation with those of other stocks or with the company's own historical valuations. Idea is similar assets should sell at similar price and relative valuation is typically implemented using price multiplies. Quick and Easy The concept behind relative valuation is simple and easy to understand: the value of a company is determined in relation to how similar companies are priced in the market. Here is how to do a relative valuation on a publicly listed company: • Create a list of comparable companies, often industry peers and obtain their market values. • Convert these market values into comparable trading multiples, such as P-E, price-to-book, enterprise-value-to-sales and EV-EBITDA multiples. • Compare the company's multiples with those of its peers to assess whether the firm is over or undervalued. • Example: WIPRO & Infosys If Wipro has a P-E ratio of 16 and Infosys has average P-E of 26 and the average for the industry is closer to, say, 25, Wipro's shares are cheap on a relative basis. You could also compare Wipro's P-E with the average P-E of an index, such as the SENSEX or Nifty, to see whether Wipro still looks cheap. Price-Earnings Ratio (P-E) = Market Price Per share - Earnings Per Share • PE is the ratio or the multiple • It tells you how much investors are willing to pay for every unit of the EPS. It also tells you whether the stock is undervalued, overvalued or fairly valued. • Trailing PE, Forward PE are used to estimate the price of the stock • Reverse of PE is called Earnings yield. • It is the most popular ratio in relative valuation • PE should be compared with its peers in the same industry • PE can also be compared with the company's track record.
Views: 14347 Avadhut Nigudkar
Equity Analysis & Valuation | Relative Valuation Models [Valuation Approaches] | Part  11
 
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Strategic Financial Management : Chartered Accountancy; Equity Analysis & Valuation | Relative Valuation Models [Valuation Approaches] | Part 11; ~ Equity Analysis & Valuation (Continuation....) Briefing : 00:00:08 - Topic Covered : 1. Relative Valuation Models : 00:01:20 - 00:33:42 - Valuation using : a. EPS (P/E) approach b. Book Value (P/BV) approach c. Sales (Price/Sales) approach d. Enterprise Value (EV/EBITDA) approach - Example * Valuation using (P/E ) approach : 00:09:06 - 00:14:01 a. Dividend Discount Model with Constant Dividend Approach b. Dividend Discount Model with Constant Growth Approach * Valuation using Book Value(P/BV) approach : Earning Growing Approach : 00:14: 04 - 00:17:45 * Valuation using Sales (Price/Sales) approach : 00:17:45 - 00:18:54 * Valuation using Enterprise Value (EV/EBITDA) approach : 00:18:54 - 00:20:49 * Valuation using (P/E ) approach [Detailed analysis with formula] : 00:20:59 - 00:33:42 a. Dividend Discount Model with Constant Dividend Approach b. Dividend Discount Model with Constant Growth Approach Video by Edupedia World (www.edupediaworld.com), Free Online Education; Download our App : https://goo.gl/1b6LBg Click here, https://www.youtube.com/playlist?list=PLJumA3phskPGZ7QPDmzNYr-fJDi5BjW6x for more videos on Strategic Financial Management; All Rights Reserved.
Views: 202 Edupedia World
Company analysis is the final phase of E I C  approach to equity valuation  It involves analysis of
 
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Need Answer Sheet of this Question paper Contact us at [email protected] M: 7019944355 EQUITY RESEARCH MANAGEMENT CASE STUDY : 1 Company analysis is the final phase of E.I.C. approach to equity valuation. It involves analysis of the financial aspects relating to a specific company to arrive at an estimation of the value of the business or its equity shares. Trend analysis, ratio analysis (EPS, PE, Book Value per share, Return on Networth, Dividend cover Profitability of shares, debt equity ratio, etc) help us to get a clear understanding of the financial position of a company. Q1) Define the term Book Value. Q2) Explain the importance of cash flow statement? Q3) Explain the approach is needed while deciding on investing in the stock of company? Q4) Define the term company analysis? CASE STUDY : 2 Mr Abhiram is the owner of a small shop in Mumbai. He wishes to enter into equity market with the investment of Rs 50,000 for the period of one year. But he does not know anything about the stock market. But his friend Shekhar has given him the advice that without knowledge do not enter into the equity market. He told him to go to the financial consultant or equity analysis consultant and then invest. Q1) Why Equity Research is important? Q2) What does equity research entail? Q3) Explain the job of an equity analysis in detail? Q4) Do you have suggestion to Mr Abhiram about his decision? CASE STUDY : 3 Equity valuation focuses on analyzing business from valuation and forecasting perspectives. It begins with the analysis of economy, industry and company (E.I.C.). In economic analysis, the performance of economy at both macro and micro level is analysed to understand the businesses for forecasting and valuation of businesses. Macro-economics deal with aggregate variables of an economy like the output, its composition and rate of growth, level and growth rates of money supply, employment, investment, exports, imports, etc. Q1) Explain the inter-relationship between Stock markets and macro-economic performance? Q2) Why do analysts care macro view and micro view? Q3) Comment current Indian macro-economics scenario? Q4) How equity valuation focuses forecasting perspective? CASE STUDY : 4 We live in a relative world where the value of everything is in relation to everything else. I drive a big ear, so and am relatively better than my neighbor but compared to my boss’s car, I am relatively not well placed. That’s the way things are and it is easy to carry such biases in equity valuation too. The concept behind relative valuation is simple and easy to understand, the value of a company is determined in relation to how similar companies are priced in the market. Q1) Explain the steps a simple relative valuation exercise for a publicly listed company? Q2) Discuss the advantages of Relative valuation? Q3) Explain the disadvantages of Relative valuation? Q4) Which are the few things that an alert analyst has to keep in mind while working with relative valuation? Need Answer Sheet of this Question paper Contact us at [email protected] M: 7019944355
CFA Level I Equity Valuation Video Lecture by Mr. Arif Irfanullah Part 2
 
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This CFA Level I video covers concepts related to: • Price Multiples • Multiples Based on Fundamentals • Multiples Based on Comparables • Enterprise Value • Assets Based Models For more updated CFA videos, Please visit www.arifirfanullah.com.
Views: 32963 IFT