Techniques for assessing a company's value from its fundamentals

  • Fundamental Analysis

Overview

In this course you’ll learn about discounting models, segment and asset valuations, and assumptions used to generate reported book values. When making investment decisions for your portfolio a better understanding of this information could help you reach your investment goals.

Objectives

When you complete this course, you will:

  • Understand various methods for assessing a company's value
  • Be able to apply these techniques to help determine the value of a company's stock
Course Outline
Title Type Highlight
1. Valuation methods Video
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What’s a company really worth? Its stock price gives only one measure, and a possibly fuzzy one at that.

What’s a company really worth? Its stock price gives only one measure, and a possibly fuzzy one at... More
2. Dividends, earnings, and cash flow discount models Article
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At the base of the valuation process is the concept of financial discounting — the idea that a payment deferred into the future should be worth more than a payment made today in order to compensate the recipient for the costs and risks inherent in waiting.

At the base of the valuation process is the concept of financial discounting — the idea that a... More
3. Computing marketable asset values Article
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Typically a company is assessed as a single entity, however, a company's value may also be seen as the value of its individual parts, where each part is assessed separately and the resultant values are added together.

Typically a company is assessed as a single entity, however, a company's value may also be seen as... More
4. Deconstructing the assumptions used for reported book values Article
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The book value of a company is the difference between the balance sheet assets and balance sheet liabilities. It is an estimation of the value of the company if it were to be liquidated.

The book value of a company is the difference between the balance sheet assets and balance sheet... More

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Company valuation ratios

  • DST Systems, Inc.