台湾大学课件—财务管理—lecture5(ch5)

Irwin/McGraw-Biblioteka Baiduill
Stock Market
©The McGraw-Hill Companies, Inc.,2001
5- 6
Stocks & Stock Market
Book Value - Net worth of the firm according to the balance sheet.
Irwin/McGraw-Hill
©The McGraw-Hill Companies, Inc.,2001
5- 7
Valuing Common Stocks
Expected Return - The percentage yield that an investor forecasts from a specific investment over a set period of time. Sometimes called the holding period return (HPR).
6000
5777.6
5000
4481.7
4000
3000 2000 1000
0
1989.5
1414.1 896.1
1308.6 1067.7
570.5
222
305.2 143.2
NYSE Nasdaq London
Paris Tokyo German Taiwan Zurich Osaka Toronto Amex
P/E Ratio - Price per share divided by earnings per share.
Irwin/McGraw-Hill
©The McGraw-Hill Companies, Inc.,2001
5- 5
Stocks & Stock Market
1997 Trading Value ($bil)
Irwin/McGraw-Hill
©The McGraw-Hill Companies, Inc.,2001
5- 3
Stocks & Stock Market
Primary Market - Place where the sale of new stock first occurs.
Initial Public Offering (IPO) - First offering of stock to the general public.
Liquidation Value - Net proceeds that would be realized by selling the firm’s assets and paying off its creditors.
Market Value Balance Sheet - Financial statement that uses market value of assets and liabilities.
Dividend Discount Model - Computation of today’s stock price which states that share value equals the present value of all expected future dividends.
P0
Common Stock - Ownership shares in a publicly held corporation.
Secondary Market - market in which already issued securities are traded by investors.
Dividend - Periodic cash distribution from the firm to the shareholders.
5-F1 undamentals of Corporate Finance
Third Edition
Chapter 5
Valuing Stocks
Irwin/McGraw-Hill
Brealey Myers Marcus
slides by Matthew Will
©The McGraw-Hill Companies, Inc.,2001
Dividend Yield + Capital Appreciation
Expected Return r Div1 P1 P0
P0
P0
Irwin/McGraw-Hill
©The McGraw-Hill Companies, Inc.,2001
5- 9
Valuing Common Stocks
Expected Return r Div1 P1 P0 P0
Irwin/McGraw-Hill
©The McGraw-Hill Companies, Inc.,2001
5- 8
Valuing Common Stocks
The formula can be broken into two parts.
Div1 (1 r)1
Div2 (1 r)2
...
DivH (1
PH r)H
H - Time horizon for your investment.
Irwin/McGraw-Hill
©The McGraw-Hill Companies, Inc.,2001
5- 10
Seasoned Issue - Sale of new shares by a firm that has already been through an IPO
Irwin/McGraw-Hill
©The McGraw-Hill Companies, Inc.,2001
5- 4
Stocks & Stock Market
5- 2
Topics Covered
Stocks and the Stock Market Book Values, Liquidation Values and
Market Values Valuing Common Stocks Simplifying the Dividend Discount Model Growth Stocks and Income Stocks