Скачать или смотреть Equity Valuation Concepts and Financial Tools

The text provides an extensive overview of *equity valuation concepts and basic tools* used in financial analysis, beginning with the subjective nature of value as demonstrated by the controversial sale of a $450 million painting. It debunks common **misconceptions about valuation**, arguing that all valuations are biased and imprecise. The document then outlines three main **approaches to valuation**: intrinsic, relative (pricing), and contingent claim valuation. A significant portion of the text focuses on the **time value of money**, explaining calculations for future and present values of single amounts and annuities, including ordinary annuities and annuities due, before introducing the concept and application of a **perpetuity**. Finally, the text details the calculation and importance of the **Cost of Capital**, particularly the **Weighted Average Cost of Capital (WACC)**, and explains methods for determining the cost of equity, such as the Dividend Growth Model and the SML/CAPM approach, concluding with an examination of using **Multiples for Valuation**, including enterprise value-to-EBIT and the drawbacks of the Price-to-Earnings (P/E) ratio.