STUDY SESSION 9
Equity Valuation：Valuation Concepts
This study session lays a foundation for the study of equity valuation. The first reading provides an overview of major themes and important models in equity valuation. The final reading presents topics relating to returns and discount rates, which are essential to equity valuation.
Reading 27 Equity Valuation: Applications and Processes
Reading 28 Return Concepts
STUDY SESSION 10
Equity Valuation：Industry and Company Analysis and Discounted Dividend Valuation
This study session provides insights on equity valuation models, including developing inputs for those models. Analyzing industries in a global context and evaluating competitive forces that will affect returns provide a foundation for security valuation decisions. Discounted dividend models are examined in detail.
Reading 29 Industry and Company Analysis
Reading 30 Discounted Dividend Valuation
STUDY SESSION 11
Equity Valuation：Free Cash Flow and Other Valuation Models
This study session presents additional valuation methods for estimating a company’s intrinsic value. The first reading addresses the free cash flow approach to valuation, which is an important alternative to the dividend discount model. The second reading discusses price and enterprise multiples, which are widely used valuation measures. In the third reading, residual income models are discussed as an approach to valuation in which accounting income is adjusted to reflect a deduction for the opportunity cost of capital. The final reading is an introduction to how private companies are valued.
Reading 31 Free Cash Flow Valuation
Reading 32 Market-Based Valuation: Price and Enterprise Value Multiples
Reading 33 Residual Income Valuation
Reading 34 Private Company Valuation