Equity Flashcards
(24 cards)
Margin call price
Initial equity %
Leverage ratio
Rate of return on margin transaction
What are the forms of market efficiency
Dividend discount model
Gordon growth model
Value of preferred stock
P/E ratio
P/CF ratio
P/S ratio
Price to book ratio
Enterprise value
DDM n period model
Constant growth model
One year holding model
How do you work out trailing P/E ratio?
How do you work out forward P/E
How do you work out enterprise value?
Market cap + MV of debt + MV of preferred stock - cash and ST investments
How to work out asset based valuation approach to estimate the value per share?
Market value of assets - market value of liabilities/estimated value per share
What must you remember when calculating the Gordon growth model?
Use D1 (dividend in next period) not D0
How to work out sustainable growth (g)
1 - dividend payout ratio
How do you work out justified forward P/E?
Payout ratio/r-g
How to work out payout ratio
Dividend per share/EPS
