Stock Valuation & Financial Modelling for Stock Investing

Concise and practical stock analysis techniques on relative & absolute valuation methodology use for value investing

This course is to help students in stock valuation using both relative valuation as well as absolute valuation techniques.

What you’ll learn

  • 1. Learn how to find out the intrinsic value of stocks..
  • 2. The ability to find the cheapest and most expensive stocks within a sector or industry.
  • 3. The ability to do financial modelling leading to find the intrinsic value of stocks..
  • 4. Ability to value a stock using different valuation techniques..

Course Content

  • Introduction –> 3 lectures • 11min.
  • Ratio Analysis –> 6 lectures • 25min.
  • Relative or comparative valuation –> 6 lectures • 35min.
  • Price to Book Value –> 5 lectures • 32min.
  • Price to sales ratio –> 1 lecture • 6min.
  • Absolute valuation – Introduction –> 7 lectures • 52min.
  • Discounted cash flow –> 4 lectures • 32min.
  • Case study – Three commercial banks –> 7 lectures • 1hr 7min.
  • The closing –> 1 lecture • 4min.

Stock Valuation & Financial Modelling for Stock Investing

Requirements

  • Students who have some stocks trading or investing experience preferred, though not an exact hard requirement..
  • The ability to use excel is preferred although it is not a hard requirement..
  • Knowing some mathematics is preferred, but again not a hard requirement..
  • The examples will not include Indian and European stocks. However, concepts are still be applicable based on the examples of US and Singapore stocks.

This course is to help students in stock valuation using both relative valuation as well as absolute valuation techniques.

The course starts with the ratio analysis to get students blend into the course proper. The purpose of ratio analysis is to help students use the appropriate criteria to select the good stocks to buy. This is the first step to stock investing. However, knowing the goods stock to buy or sell is not good enough. The next step is to look into ways to value a stock so that students can buy the selected at the right price. It is no point to buy a good stock at wrong price. Always remember that even if an investor managed to buy a good stock at sky-high price, he may not able to benefit from the investment. Hence, it is important to know some valuation techniques. This is to enable him to buy stocks at the right price. Generally, there are two types of valuation techniques – relative valuation and absolute valuation.

Relative valuation concept: Here, several valuation techniques, such as PE ratio, PBV and PS ratios, were shared. Valuation using these techniques are compared against each other, against industry benchmarks and against time.

Absolute valuation concept: This is where students will be taught on intrinsic valuation, and the various methods to obtain the intrinsic value using financial modelling techniques. The valuation models for this section will be Dividend Discount Model (DDM) and Discounted Cash Flow (DCF).

The course will involve theories and principal concepts, and where to obtain the data to fit into the financial formula. Exercises and financial quizzes to help reinforce the understanding on the key concepts. The course will have many examples to help reinforce the key concepts.

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