III-Equity Securities/Valuation-2

Question 1

1. Common Shares 分类2
2. preferred shares 分类3

Answer 1

1. callable (issuer 一定价格买回)/ putable (investor一定价格卖给issuer)
2. cumulative/non-cumulative: 之前未分配的利润可累积
   participating: 参加exces return的分配

convertable preferred share可转换优先股

Question 2

Preferred shares

特征3

Answer 2

1. 同时具有债务工具（固定收益）和权益工具特征
2. dividend fixed，don’t share firm’s operating performance
3. no voting rights

Question 3

比较risk大小

1. putable stock/ callable stock
2. preferred stock/ common stock
3. cumulative preferred/ non-cumulative

Answer 3

1. putable
2. preferred
3. cumulative

Question 4

3种

Private Equity Securities

Answer 4

1. Venture Capital
2. Leveraged Buyout (LBO): management buyout (MBO)
3. Private Investment in Public Equity (PIPE)

Question 5

4种投资foreign equity securities 方法

Answer 5

1. Direct investing (汇兑风险)
2. Depository Receipts :类似资产证券化，以中国股票为存托，在美国发行
3. Global Registered Shares: 在不同国家交易所发行，不同交易所间free trade, more flexible than DR
4. Basket of Listed DR (BLDR): specific class of ETF

Question 6

Depository Receipts (DR)

1. 辨析GDR/ADR
2. Sponsored/unsponsored
3. ADS

Answer 6

1. GDR: global DR,不在美国发行but denominated in USD。ADR: American DR
2. sponsored: 公司发起的，投资者有投票权/分红权
   unsponsored: 托管行自发，the company doesn’t involve. 投票权分红权在托管行
3. American depository shares: underlying share of the ADR. share是中国的股票

Question 7

ADR 3 levels

之辨析

Answer 7

啊

啊

啊

Question 8

Equity Securities Return

包含3方面

Answer 8

1. dividend (reinvestment compounded 很可怕)
2. price appreciation
3. 外国股票： currency exchange loss/gain

Question 9

Equity Security Risks

1. based on ?
2. measured using?

Answer 9

1. uncertainty of cash flows
2. standard deviation of past returns (not dividends)

Question 10

几种Equity Valuation Models

Answer 10

1. absolute valuation: DCF, asset-based

DCF: discounted dividend/ discounted FCFE/ Gordon Growth (multi-stage)

2. relative valuation: price multiples, Enterprise Value multiples (fundemental based: time series/ comparable based, cross-sectional)

Question 11

Dividend Discount Model

例题【no current div】

Answer 11

Question 12

Gordon Growth Model

1. 公式
2. 假设前提2
3. 局限性2

Answer 12

1. V0=D1/(r-g)
2. ggrowth rate and r return never change
3. r bigger than g
4. 结果对r和g很敏感
5. 不分红的股票不好计算(当然也可以预测未来时间点分红)

Question 13

Gordon Growth Model

计算how much of the estimated stock value

is due to dividend growth?

Answer 13

1. assum no growth, g=0
2. V= Do/ r
3. 原Vo - V即是所求

Question 14

Discounted FCF Model

1. use FCFE: equation
2. use FCFF: equation
3. 用途

Answer 14

1. Vo= FCFE1 / (r_e-g)
2. Vo=FCFF1 / (WACC-g)
3. 代表公司的dividend-paying capacity,可用于暂未发放股利的公司估值

Question 15

Price Multiples Model 【fundemental】

1. leading P/E, trailing P/E equation
2. 两个等式之间的关系
3. define: dividend displacement of earnings
4. advantage 2
5. limitation 3

Answer 15

1. Po/E1 = p₁/(r-g)
2. 见图
3. dividend pay out ratio (p)高，会使P/E高。但是p高也可能意味着公司没有留足够的钱用于再投资，不是好事。
4. 好计算，可以横向纵向两个维度比较
5. fundemental based/ comparable based结论可能冲突

受accounting methods影响大

不同周期、size，行业公司无法comparable

Question 16

Price Multiples Model 【comparable base】

1. define: law of one price
2. 用途

Answer 16

1. identical assets should sell for the same price

(no arbitrage law)

2. the underlying rationale for method of comparables

Question 17

EV/EBITDA Model

1. 计算EV
2. EV实质是？
3. 此法优势2

Answer 17

1. EV=market cap+market value of preferred stock+market value of debt - cash&cash equivalent
2. could be viewed as the price of a takeover
3. 不同cap structure公司间也可比较
4. 剔除税负、杠杆等影响

Question 18

Asset-based Valuation Model

1. 做法
2. 适用情况3
3. 适用行业举例3

Answer 18

1. use FV/market value of the company
2. market value of company asset 比较容易得到
3. 无形资产占比较小
4. inflation稳定
5. financial companies, natural resource, facing liquidation