R.26 Equity Valuation: Applications and Processes

Question 1

Valuation: Application & Process

• Intrinsic Value (perceived mispricing)
• Going-concern assumptions
• Model selection criteria

Answer 1

Question 2

Valuation - Applications & Process

• Absolute vs relative values
• Valuation process overview: 5 steps, what’s critical?
• Porter’s 5-Forces?
• Porter’s competitive strategy? (3-advantages)
• Uses of valuation

Answer 2

Question 3

LOS 30.a: Compare dividends, free cash flow, and residual income as inputs to discounted cash flow models and identify investment situations for which each measure is suitable.

Answer 3