Decks in this Class (11):

A Evaluate Whether A Security Given Its
A: Evaluate whether a security, given its current market price and a value estimate, is overvalued, fairly valued or undervalued by the market
Sample Cards:an asset is fairly valued if the market,for security valuation to be profitable,securities that are followed by many inv4 CardsPreview Flashcards 
B Describe Major Categories Of Equity Va
B: Describe major categories of equity valuation models
Sample Cards:discounted cash flow models estimate the,multiplier models compare the stock pric,asset based models define a stock s valu3 CardsPreview Flashcards 
C Explain The Rationale For Using Presen
C Explain the rationale for using present‐value of cash flow models to value equity and describe the dividend discount and free‐cash‐flow‐to‐equity models
Sample Cards:the dividend discount model ddm is based,free cash flow to equity fcfe can be use,witronix is a rapidly growing us company6 CardsPreview Flashcards 
D Calculate The Intrinsic Value Of A Non
d: Calculate the intrinsic value of a noncallable, nonconvertible preferred stock.
Sample Cards:calculate value of preferred stock using,calculate the intrinsic value of a non c2 CardsPreview Flashcards 
E Calculate And Interpret The Intrinsic
e: Calculate and interpret the intrinsic value of an equity security based on the Gordon (constant) growth dividend discount model or a twostage dividend discount model, as appropriate.
Sample Cards:the gordon growth model assumes the grow,a firm with high growth over some period,the sustainable growth rate is the rate13 CardsPreview Flashcards 
F Identify Companies For Which The Const
f identify companies for which the constant growth or a multistage dividend discount model is appropriate;
0 CardsPreview Flashcards 
G Explain The Rationale For Using Price
g explain the rationale for using price multiples to value equity and distinguish between multiples based on comparables versus multiples based on fundamentals;
0 CardsPreview Flashcards 
H Calculate And Interpret The Following
h calculate and interpret the following multiples: price to earnings, price to an estimate of operating cash flow, price to sales, and price to book value;
0 CardsPreview Flashcards 
I Describe Enterprise Value Multiples An
i describe enterprise value multiples and their use in estimating equity value;
0 CardsPreview Flashcards 
J Describe Asset Based Valuation Models
j describe assetbased valuation models and their use in estimating equity value;
0 CardsPreview Flashcards 
K Explain Advantages And Disadvantages O
k explain advantages and disadvantages of each category of valuation model.
0 CardsPreview Flashcards
Current Learners (2)
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