FULLY SOLVED BOOK LASY 5 YEARS PAPERS SOLVED PLUS GUESS

Equity Valuation

UNIT I
Equity Valuation: Meaning of Value, Valuation Applications, Valuation process, Role of analyst in valuation, Return concept, Risk premium, Required return on equity, Discount rate selection in relation ot cash flow, Measuring Cash flows, Forecasting cash flows, Equity Discounted cash Flow Models viz Gordon Growth Model, Two stage & Three stage dividend discount model, H model, FCFF and FCFE models. (11 hours)
UNIT II
Relative Valuation: Meaning, ubiquity of Relative Valuation, Advantage and limitations of relative valuation, standardized values and multiples such as Earnings, Revenue, Sector specific multiples, criteria for selection of multiples, Price and Enterprise Value multiples in valuation: The method of comparables, Method based on Forecasted Fundamentals. Price multiples, Enterprise value multiples, International considerations when using multiples. (11 hours)
UNIT III
Residual Income valuation: Residual Income, Use of Residual Income in Equity Valuation, The Residual Income model-Determinants, Single stage and multi stage Residual Income Valuation,Residual Income Valuation versus other approaches of valuation- its strengths, weaknesses and Guidelines in using it, accounting and International considerations. (10 hours)
UNIT IV
Private Company Valuation and Loose Ends in Valuation: Meaning & Scope: Private Company Valuation Approaches: Valuation of intangibles, Value of control value of liquidity, Value of Synergy and Value of Transparency