Learning Outcome Statements

1. What is value?

a. define valuation and intrinsic value and explain sources of perceived mispricing;

b. explain the going concern assumption and contrast a going concern value to a liquidation value;

c. describe definitions of value and justify which definition of value is most relevant to public company valuation;

2. Applications of equity valuation

d. describe applications of equity valuation;

3. The valuation process

e. describe questions that should be addressed in conducting an industry and competitive analysis;

4. Absolute and relative valuation models

f. contrast absolute and relative valuation models and describe examples of each type of model;

g. describe sum-of-the-parts valuation and conglomerate discounts;

h. explain broad criteria for choosing an appropriate approach for valuing a given company.