INVESTMENTS_投资学_（博迪BODIE,_KANE,_MARCUS）Chap018_Equity_Valuation_Models教材教学课件.pptVIP

CHAPTER 18;Valuation: Fundamental Analysis;Balance Sheet Models Dividend Discount Models (DDM) Price/Earnings Ratios Free Cash Flow Models ;Valuation by Comparables;Limitations of Book Value;Intrinsic Value vs. Market Price;Required Return;The intrinsic value (IV) is the “true” value, according to a model. The market value (MV) is the consensus value of all market participants Trading Signal: IV MV Buy IV MV Sell or Short Sell IV = MV Hold or Fairly Priced ;Example 18.2 Constant Growth DDM;DDM Implications;g = growth rate in dividends ROE = Return on Equity for the firm b = plowback or rete