British Columbia Institute of

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FMGT 7105 - Equity Analysis

Financial Management Part-time Studies Course

School of Business + Media

To support you and your education, BCIT is adapting applied learning in formats appropriate to the unfolding global situation. All PTS classes are being delivered in an online format unless you are notified otherwise.

Course Details

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.


FMGT 7030 and OPMT 1197 (with a grade of 65% or better).



This course isn't currently offered through BCIT Part-time Studies. Please check back next term or subscribe to receive email updates.

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

Related Programs

FMGT 7105 is offered as a part of the following programs:

School of Business + Media

  1. Financial Analyst
    Part-time   Advanced Certificate


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