Equity Valuation and Portfolio Management Individual stock valuation: covered in other finance courses Valuation of the market as a whole (16.6 in text) Active portfolio management (separate set of slides) B. Valuation of the Market Is the aggregate stock market overvalued? Undervalued?
E1 = $54.09, Y0 = 4.5%. P0 = 1038 Hence, Y0 < E1/P0
and the market is considered undervalued