Equity valuation of Jerónimo Martins - Jerónimo Martins is a Portuguese Corporate Group, currently operating in food distribution and consumer products manufacturing.
This book provides an introduction to numerical analysis and is intended to be used by undergraduates in the sciences, mathematics, and engineering. The main prerequisite is a one-year course in th...
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Descrição: “There are more things in Heaven & Earth… than are dreamt of in your philosophy.” Potter's Lake is a small, midwestern town where local legends, wives tales, and sightings of the supernatural ab...
Price Wizard is a suite of industry‐scoped multi‐factor neural network equity models that were pre-trained to convert recently reported company fundamentals into a current estimated market price. I...
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hadi saadat power system analysis third edition
Descripción: hadi saadat power system analysis third edition
hadi saadat power system analysis third editionFull description
hadi saadat power system analysis third edition
Parallax US Equity Valuation Neural Network Model
Mathematical Statistics And Data Analysis 3rd Edition Chapter 7 problems & solutions (most of them)Full description
Equity Valuation and Analysis – Lundholm & Sloan Chapter 1 - Introduction Focus of the Book – Equity Valuation Business Activities Operating Investing Financing Equity Valuation Theory Dividend Discounting Model o The value of an equity security is equal to the present value of the future cash flows that it will generate
o Where Value0 = Value of equity at time 0 Cash Dividendt = expected amount of cash dividends to be paid in period t r = discount rate (cost of capital)
Chapter 1
Equity Valuation and Analysis
Page 1 of 5
o Modified Model
o Where all from except Stock Repurchasest = expected amount of cash to be paid in period t Equity Issuancest = expected amount of cash to be raised via equity issuances in period t o Of course the challenge is the estimated of the amount and timing of the cash flows So where do financial statements fit into all of this? o Provide a record of the past operating, investing and financing decisions and their cash flow effects o Provide a beginning point for forecasting the future
Chapter 1
Equity Valuation and Analysis
Page 2 of 5
Equity Analysis Process Step 1 - Understading the Past
• Information Collection • Understanidng the Business • Accounting Analysis • Financial Ratio Analysis • Cash Flow Analysis
• Cost of Capital • Valuation Models • Residual Income • Cash Flow • Valuation Ratios • Complications • Negative Values • Value Creation and Destruction through Financing Transactions
Page 3 of 5
Understanding the Past o Information Collection – SEC reports, press releases, industry and economic analysis o Understanding the Business – What is the company’s strategy, who are its main competitors, etc. o Accounting Analysis – Understanding a firm’s accounting policies and estimates o Financial Ratio Analysis – Using financial statements to gain insight into the financial structure and performance of the business – mostly focused on the balance sheet and income statement o Cash Flow Analysis – Understanding the operating, investing and financing decisions and their cash flow impact by reviewing the cash flow statement
Chapter 1
Equity Valuation and Analysis
Page 4 of 5
Forecasting the Future o Structured Forecasting – forecasting key financial ratios and then using this information to forecast financial statements. Also includes forecasting EPS. o Forecasted (pro forma) Financial Statements – Income Statement, Balance Sheet, and Statement of Cash Flows. Also includes ratio analysis of pro forma statements. Valuation o Cost of Capital – What discount rate should we use to determine the present value of the future cash flows o Models Residual Income (earnings based) Discounted Free Cash Flow (cash flow based) o Valuation Ratios – useful to determine over or under priced stocks o Complications Negative equity values Financing transactions that create or destroy value
