Objective: Learn how to factor in the cash dividends that an investor will receive over the lifetime of owning

a perpetual dividend stock. The Gordon growth model for valuing common stock, and how to factor in different phases of growth and terminal value into the value of a stock investment are also discussed. A detailed analysis of risks of investing in stock and how to calculate the Weighted Average Cost of Capital, and free cash flow from the financial statements of a company are also covered. This stock valuation video also talks about how financial analysts can calculate a key financial ratio used for equity valuation, the price to earnings ratio, from net profit and the estimated earnings per share.

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