Section outline
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Learning Objectives:
The students should be able to:
Evaluate whether a security, given its current market price and a value estimate, is overvalued, fairly valued, or undervalued by the market;
- Describe major categories of equity valuation models;
- Calculate the
intrinsic value of a non-callable, non-convertible preferred stock;
Chapter Content:
- Estimated value and market price,
- Major categories of Equity valuation models,
- present value models,
- Multiplier Models,
- Asset-Based valuation.