Stock Valuation and Analysis

This course is ideal for Financial analyst, Bankers, Risk Managers and Credit Analysts. The training will include the following;

• The basic characteristics of Preferred Stock

• Valuing Preferred Stock

• The basic characteristics of Common Stock

• Valuing Common Stock

• Calculating a stock’s expected rate of return

• Dividend policy affecting stock price

• Different Dividend decisions

• Computation of dividend on stock

The course will help you learn about valuing of company’s stock while financial decision making discussed with the help of a few case studies. Stock valuation is a process for estimating the economic worth of a stakeholder’s interest in a business. Before starting the valuation, the circumstances surrounding and the reasons for valuation has to be ascertained. These are formally known as “premise of value”, and “standard of value”. While the former relates to assumptions on which valuation is based, the latter represents the hypothetical conditions on which the company will be valued.

There are several instances when you may have to determine the market value of a company. Selling and buying a business, of course, is one of the most common reasons. Estate planning, reorganization, and verification of a company’s worth to its investors and lenders are the other common reasons.

Valuing a business is not mathematics that will lead to a calculated result. Valuations may vary on the type of business and the reasons behind valuating it in the first place. There are many factors involved in the process, from the book value of the company to a wide range of tangible and intangible elements. Generally speaking, the value of a company will have to rely on its cash flow analysis. In other words, a company’s ability to generate regular profits would ultimately determine its actual worth in the marketplace.

Business valuation is the first point where sellers and buyers meet. The two sides rarely arrive at a common number. The seller would obviously look for a higher price to sell the business. The buyer, on its part, would want a lesser valuation. The goal of the media company evaluator would be to arrive at a number from which the seller and buyer can further negotiate the price. Veteran business appraiser Bryan Goetz said that businesses are as complex and unique like the people who run them and a company can’t be valued by a simple thumb rule.