Valuation: How to Calculate the Price of a Share Traded on Stock Markets

About

The price of a stock is available on the internet (www.finance.yahoo.com). The prices keep changing constantly. However, how do investors know if the price of the share is overvalued or undervalued? This module will teach us how to determine the expected value (price) of a share, applying fundamental analysis. In this course, we aim to integrate all corporate finance concepts, theories, metrics, and models into specific valuation exercises that will help students make sense of all the finance-related topics normally covered in standard business education. This module is case-based, and the valuation method will be demonstrated using real-life cases—corporations like Google, Tesla, Microsoft, Netflix, Walmart, etc. Students will need to, in parallel with the class, conduct their own valuation of a listed company. At the end of the module, students will have the fundamental skills that financial analysts apply daily in their jobs.

Course leader

Dr. Golam Robbani

Target group

Basic accounting knowledge is necessary. Candidates without prior accounting knowledge may follow one or two modules offered by the same instructor in the previous weeks as under:
15-19 July: Financial Accounting: How to Prepare Financial Statements
22-26 July: Financial Statement Analysis

Course aim

• Independently collect (download) and analyse data of a corporation.
• Estimate the cost of equity, cost of debt, and weighted average cost of capital.
• Independently identify, define, compute, and forecast Cash Flows of a corporation.
• Choose and apply appropriate valuation techniques to real-life projects (shares of a corporation).
• Communicate complex financial data to a non-expert audience in a simple, ethical, and meaningful way to win the approval of higher-up decision-makers.

Fee info