1 / 7

Objectives:

Objectives:. Understand multiple methods of estimating a company’s value: Market cap Future dividends Book value. Notional Company. Print $1/year each year, forever What is this company worth?. What is Current Value of a Future $1. Intrinsic Value.

graiden-burt
Download Presentation

Objectives:

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. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Objectives: • Understand multiple methods of estimating a company’s value: • Market cap • Future dividends • Book value

  2. Notional Company • Print $1/year each year, forever • What is this company worth?

  3. What is Current Value of a Future $1

  4. Intrinsic Value • “future income generated by the asset, and discounting it to the present value.” • sum(dividend*gamma^i) • = dividend * 1/(1-gamma)

  5. Why/How Does Information Affect Price? • Informs traders about the company’s capacity to make money in the future. • Examples • CEO effectiveness. • Cost of raw materials.

  6. Local and Global Affects

More Related