清华大学公司金融(金融硕士课程)cf5.pdfVIP

Corporate Finance Hao Wang Tsinghua University Fall 2013 Hao Wang (Tsinghua University) Stock Valuation Fall 2013 1 / 32 Key concepts and skills Understand how stock prices depend on future dividends and dividend growth Be able to compute stock prices using the dividend growth model Understand how growth opportunities a§ect stock values Understand the PE ratio Understand how stock markets work Hao Wang (Tsinghua University) Stock Valuation Fall 2013 2 / 32 Chapter outline The Present Value of Common Stocks Estimates of Parameters in the Dividend Discount Model Growth Opportunities Price-Earnings Ratio The Stock Markets Hao Wang (Tsinghua University) Stock Valuation Fall 2013 3 / 32 Dividend Growth Model (DGM) Hao Wang (Tsinghua University) Stock Valuation Fall 2013 4 / 32 Stock valuation What is common stock? Ownership in the Örm. Receive cash áows: Dividends. Or, if the company shuts down, the value of the assets after all of the debt has been paid o§. Assume that: A company pays dividends each period (usually quarterly) with certainty. the company will NEVER go bankrupt. Hao Wang (Tsinghua University) Stock Valuation Fall 2013 5 / 32 The PV of common stock The value of any asset is the present value of its expected future cash áows. Stock ownership produces cash áows from: Dividends Capital Gain: a proÖt made from buying an asset and reselling it at a hi