Business Valuations - How To Value a Company
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Күн бұрынAndrew Mower, Tutor at Kaplan, explores different approaches to business valuations. Andrew looks at 4 main business valuation methods: Asset based valuations, Dividend Valuation Model, P/E Ratios and Discounted Cash Flows
Relevant to ACCA students studying FM and AFM, ACA students studying FM and SBM, and CIMA F3 students.
ACCA REVISION:
kzfaq.info/sun/PLC...
CIMA REVISION:
kzfaq.info/sun/PLF...
00:00 - 00:46 Intro
00:46 - 04:32 Asset-Based Valuations
04:32 - 08:14 Dividend Valuation Method
08:14 - 13:22 P/E Ratios
13:22 - 18:55 Discounted Cash Flow Technique
18:55 - 19:22 Outro
@shaista9938 Жыл бұрын
Love the visuals , concise, quick clear speech and neatness
@prequeltothesequel4073 9 ай бұрын
this video also changed my life
@pka4177 2 жыл бұрын
very good, useful and informative lecture, thanks a lot
@BeccaandSoph Жыл бұрын
Really helpful, thanks Andrew!
@TheTheboss0114333 Жыл бұрын
that was a very good value added video
@ihalagen Жыл бұрын
It is simple but touched comprehensive areas impressive manner.
@tutornick 7 ай бұрын
Very useful, thanks for posting
@playerzero2236 2 жыл бұрын
This is excellent information sir
@magdalenawidlak6568 2 жыл бұрын
very good lecture
@Livaren Жыл бұрын
this video changed my life
@SrikrishnanPrasanna-mb8nb 3 ай бұрын
Hello Andrew. Referring to time stamp 5:50, pl. help me with the logic/ rationale of why 'Ke less G' is the denominator.
@AndrewMowerTuition 3 ай бұрын
Hi - this is due to it being a growing perpetuity. The mathematical formula for a growing perpetuity is CF * 1/(r-g) as you have seen - so this is using Ke as r, and growth is still g.
@brundavenkatesh1534 3 ай бұрын
Hello Andrew, Time-stamp 4:5 to 8:05 = could u pl. shed light on logic as to why the denominator is Ke less G
@AndrewMowerTuition 3 ай бұрын
Hi - this is due to it being a growing perpetuity. The mathematical formula for a growing perpetuity is CF * 1/(r-g) as you have seen - so this is using Ke as r, and growth is still g.
@pigslefats Жыл бұрын
So the value of a company is the PV of future cash flows using a discount rate. What exactly does that discount rate mean? If the answer you get is say £1 million using a discount rate of 10% what does that mean?
@AndrewMowerTuition 3 ай бұрын
Hi - the discount rate is the company's cost of capital (WACC). There is a separate Masterclass video on the WACC if you want to see what it's made up of!
@pigslefats 3 ай бұрын
@@AndrewMowerTuition I know how WACC is derived. I know the calculations. I know CAPM etc, but again some clarification on the CONCEPT of arriving at a company valuation based on using a discount rate. In other words say I need an investor and I say the company is worth £1million at 10% WACC. How does the investor interpret that? An investor who is unfamiliar with WACC and discount rates
@AndrewMowerTuition 3 ай бұрын
This is because future earnings need to at least meet the company's cost of capital to generate value for investors. If the investor is unfamiliar with WACC and discount rates, it would be wise not to explain the value using WACC. They could also watch the KZfaq video on WACC to understand it 😀
@SioneahiMoimoi-zu2in 9 ай бұрын
How about if the dividend is zero??
@KaplanUK-EN 8 ай бұрын
The DVM would say the value is 0 if the dividend is 0 - that is one of its many flaws as a method!
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