Equity Analysis
Valuing companies from first principles. Starting from the no-arbitrage foundation of value, the course builds the dividend discount, discounted-cash-flow and residual-income models, the value drivers behind them, the discount rate and implied cost of capital, the link to market multiples, and how fundamental analysis informs an equity thesis.
Foundations of Value and the Dividend Discount Model
The no-arbitrage foundation and the stochastic discount factor, the dividend discount model, the Gordon growth model, deriving cost of capital and implied growth, the discount rate and risk premium, and multi-stage and H-models.
Discounted Cash Flow Models and the Cost of Capital
Reformatting the balance sheet into invested capital and net debt, FCFF/FCFE/FCFD, firm- and equity-level DCF, the WACC circularity, the unlevered cost of capital, and the APV model under passive vs active debt policy.
Residual Income Valuation and Value Drivers
The residual income (economic profit) model from clean surplus, the ROIC–WACC spread, the link to free cash flow, steady-state and sustainable growth, the P/E relationship, and value drivers including Rappaport.
Abnormal Earnings Growth and Model Reconciliation
The abnormal earnings growth (AEG) model, residual income vs AEG, how accounting choices wash out under clean surplus, why models disagree in practice, growth-timing lags, and WACC and dirty-surplus consistency.
Reconciliation of Valuation Models
Lesson being prepared from the slide deck.
Forecasting and Business Environment Analysis
Lesson being prepared from the slide deck.
The Ohlson Model and Forward Earnings Growth
Lesson being prepared from the slide deck.
The Discount Rate and Implied Cost of Equity Capital
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Fundamental Valuation and Market Multiples
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Revision
Lesson being prepared from the slide deck.