- International Fees
International fees are typically 3.25 times the domestic tuition. Exact cost will be calculated upon completion of registration.
Course Overview
This course begins with the essential tools of equity valuation: the discounted cash flow technique and the relative valuation approach. Also addressed is estimating a company’s earnings per share by forecasting sales and profit margins. We examine price multiples, one of the most familiar and widely used tools in estimating the value of a company, and introduce the application of commonly used price multiples to valuation.
- Retired
- This course has been retired and is no longer offered. Find other Flexible Learning courses that may interest you.
Learning Outcomes
At the end of this course the student will be able to:
- Assess the value of a preferred stock and a common stock using the dividend discount model (DDM)
- Justify how to use the DDM to develop an earnings multiplier model
- Describe the factors in the DDM that affect a stock’s price-to-earnings (P/E) ratio
- Calculate and interpret P/E, P/BV, P/S, and P/CF
- Assess and interpret free cash flow to the firm (FCFF) and free cash flow to equity (FCFE)
- Apply the basic principles of capital budgeting, including the choice of the proper cash flows and determining the proper discount rate
- Calculate and interpret the weighted average cost of capital (WACC) of a company
- Calculate and interpret liquidity measures using selected financial ratios for a company
- Compare liquidity measures of peer companies
Effective as of Fall 2011
Programs and courses are subject to change without notice.