Fundamental values and market values for a company's securities may differ

  • Fundamental Analysis

Overview

In this course you’ll learn about the differences between analyzing securities using fundamental values versus market values. In addition you'll learn how credit evaluations can help shape equity valuations. With a better understanding of these analysis methods you may be able to improve your trading and investment decisions.

Objectives

When you complete this course, you will:

  • Understand the benefit of using different methods of analysis
  • Be able to use these approaches to help determine the value of a security
Course Outline
Title Type Highlight
1. Reality check 1: Comparing market-derived and fundamentally derived values for equity Article
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When using market-price valuations, it is important to compare apples to apples— make sure ratio definitions and time periods are the same for the company in question and those to whom you are comparing it.

When using market-price valuations, it is important to compare apples to apples— make sure ratio... More
2. Reality Check 2: Comparing market-derived and fundamentally derived values for bonds Article
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In theory, a bond's yield can be expressed as the market's risk-free interest rate plus a risk premium. While the primary features of fixed income instruments may make their valuation appear to be straightforward, there are notable extenuations for every valuation scenario.

In theory, a bond's yield can be expressed as the market's risk-free interest rate plus a risk... More
3. Market factors that create valuation disparities Article
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While there may be no clear and objective measure of the significance of apparent valuation discrepancies, you should understand all of the factors that create a discrepancy before using it as a basis for any investment strategy.

While there may be no clear and objective measure of the significance of apparent valuation... More
4. Interpreting price signals across markets Article
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In this lesson you'll find a helpful table that provides a side by side comparison of long-term equity performance by companies carrying a particular current credit outlook.

In this lesson you'll find a helpful table that provides a side by side comparison of long-term... More

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Company valuation ratios

  • DST Systems, Inc.

Computing marketable asset values

  • DST Systems, Inc.