Valuations: Businesses, Securities, and Real Estate
This course covers valuations ranging from businesses, bonds, preferred stock and common stock to real estate. Business valuation is essentially a present value concept that involves estimating future cash flows of a business and discounting them at a required rate of return. The value of a bond is essentially the present value of all future interest and principal payments. Stock price may be expressed as a function of the expected future dividends and a rate of return required by investors. The Gordon’s valuation model reflects this process. Real estate valuation involved several rule-of-thumb valuation methods.
Course information
Course No. 7027
Format: Online pdf (64 pages). Printed book available.
Instructional Delivery Method: QAS Self-Study
Prerequisites: Basic math
Advance Preparation:None
Level: Overview
CPE Credit: 2.5 hrs.
Field of Study: Finance
Course expiration: You have one year from date of purchase to complete the course.
Course Revision Date: May 2021
Objectives
After reading the course material, you will be able to:
- Recognize the reasons for business valuations.
- Identify various business valuation methods and the different variables used for valuation purposes.
- Recognize the valuation methods used for financial securities.
- Identify the determinants of the price-earnings ratio and the definition of beta values.
- Recognize other pragmatic valuation approaches and valuation methods for an income producing property.
Course Contents
Chapter 1: Corporate Valuations
Steps in Valuation
Step 1: Analyze Historical Performance
Step 2: Project Future Performance
Step 3: Estimate the Rate of Capitalization Rate
Step 4: Estimate Valuation
Step 5: Compute and Interpret Results
Revenue Ruling 59 – 60
Chapter 2: Security and Real Estate Valuation
How to Value a Security
How to Value Bonds
How to Value Common Stock
How to Forecast Stock Price: A Pragmatic Approach
What Are The Determinants Of The Price-Earnings Ratio?
How to Read Beta
What Does It Mean When a Firm’s Stock Sells on a High or Low P/E Ratio?
What Other Pragmatic Approaches Exist?
The Price-Sales (P/S) Ratio
The Price-Dividends (P/D) Ratio
The Price-Book (P/B) Ratio
What Is The Bottom Line?
How Do You Value An Income Producing Property?
Conclusion
Very good course. Provided good knowledge which i can use in my current job.