FINM3412-TUTORIAL 5 VALUATION Advanced Investments and Portfolio Management
Table of Contents I.Overview II.Enterprise Value vs. Equity Value III.Valuation Methods IV.DCF Valuation V.Relative Valuation VI.In-class Assessment
Overview Cash: $100Accounts receivable: $100 Inventories: $900 PPE: $840 Accounts Payable: $40 Borrowings: $1000 Equity: $900 Suppose we have a company with the following balance sheet. How would we find the value of this company? •There are two common valuation metrics for a company: ‒Enterprise value (referred to as EV) ‒Equity value (no abbreviation) •This is also broken up between: ‒Book value ‒Market value
