Valuation Part
This presentation is the property of its rightful owner.
Sponsored Links
1 / 12

Valuation Part 1 Presented by: Elson ong PowerPoint PPT Presentation


  • 75 Views
  • Uploaded on
  • Presentation posted in: General

Valuation Part 1 Presented by: Elson ong. 1) Several Key Financial Metrics 2) How to Identify Them in An Annual Report. Yale-NUS Investment Masterminds. Auditing. The Big 4 Auditing Firms: Deloitte & Touche Ernest & Young KPMG PricewaterhouseCoopers (PwC).

Download Presentation

Valuation Part 1 Presented by: Elson ong

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Valuation part 1 presented by elson ong

Valuation Part 1

Presented by: Elson ong

1) Several Key Financial Metrics

2) How to Identify Them in An Annual Report

Yale-NUS Investment Masterminds


Auditing

Auditing

The Big 4 Auditing Firms:

Deloitte & Touche

Ernest & Young

KPMG

PricewaterhouseCoopers (PwC)

Yale-NUS Investment Masterminds


Types of financial statements

Types of Financial Statements

  • Profit and Loss Statement

    • Summarizes the revenues, costs and expenses incurred during a specific period of time

    • Also known as Income statement

  • Balance Sheet

    • Summarizes the company’s assets, liabilities and company’s equity

  • Cash Flow Statements

    • Provides all cash inflows a company receives from both its ongoing operations and external investment sources, as well as all cash outflows that pay for business activities and investments

    • Helps investors see if a company is having trouble with cash

Yale-NUS Investment Masterminds


Profit and loss statement

Profit and loss statement

  • Key Terms:

    • Revenue

      • Amount made by the firm (Price of Goods Sold*Unit of Goods Sold)

    • Operating Profit

      • Revenue less Expenses (Except Interest and Taxes)

      • Depreciation

        • Cost of a tangible asset over its useful life

      • Also known as Earnings Before Interest and Tax (EBIT)

    • Profit After Tax

      • Operating Profit Less Tax

      • Also known as Net Profit/Loss

Yale-NUS Investment Masterminds


Valuation part 1 presented by elson ong

Balance Sheet

Assets = Liabilities + Owners Equity

Yale-NUS Investment Masterminds


Valuation part 1 presented by elson ong

Balance Sheet

  • Assets

    • Current Assets

      • Value of all assets that are reasonably expected to be converted into cash within one year in the normal course of business

      • Eg: Cash, Accounts Receivables and Prepaid Expenses

    • Noncurrent Assets

      • Long-term investments, in the case that the full value will not be realized within the accounting year

      • Eg: Property, Plant, Equipment and Goodwill

Yale-NUS Investment Masterminds


Valuation part 1 presented by elson ong

Balance Sheet

  • Liabilities

    • Current liabilities

      • A company's debts or obligations that are due within one year

      • Eg: Short term debt , Accounts Payable and Taxes Payable

    • Noncurrent liabilities

      • A business's long-term financial obligations that are not due within the present accounting year

      • Eg: Long-term borrowing and Bonds payable

Yale-NUS Investment Masterminds


Valuation part 1 presented by elson ong

Balance Sheet

  • Owners Equity

    • Also known as Shareholder’s Equity

    • Share Capital

      • Amount of funds contributed by Shareholders

    • Reserves/Retained Earnings

      • Portion of a company's net income, which is kept by the company instead of being paid out as dividends to equity holders.

      • Net Profit – Dividends

Yale-NUS Investment Masterminds


Valuation part 1 presented by elson ong

Cash Flow statements

  • Key Terms:

    • Cash Flows from Operating Activities

      • Money a company brings in from ongoing, regular business activities, such as manufacturing and selling goods or providing a service

      • Cash Flow From Operating Activities = EBIT + Depreciation - Taxes

Yale-NUS Investment Masterminds


Valuation part 1 presented by elson ong

Cash Flow statements

  • Key Terms:

    • Cash Flows from Investing Activities

      • Change in a company's cash position resulting from any gains (or losses) from investments in the financial markets and operating subsidiaries, and changes resulting from amounts spent on investments in capital assets such as plant and equipment

Yale-NUS Investment Masterminds


Valuation part 1 presented by elson ong

Cash Flow statements

  • Key Terms:

    • Cash Flows from Financing Activities

      • Accounts for external activities that allow a firm to raise capital and repay investors, such as issuing cash dividends, adding or changing loans or issuing more stock.

      • Cash Flows from Financing Activities = Cash Received from Issuing Stock or Debt - Cash Paid as Dividends and Re-Acquisition of Debt/Stock

Yale-NUS Investment Masterminds


Valuation part 1 presented by elson ong

Valuation Part 1

Presented by: Elson ong

Any Questions?


  • Login