Stock Valuation Flashcards
Which asset valuation method assumes the highest discount factor?
Liquidation Value
Book Value
Going Concern Value
Liquidation Value
A word that describes what something is actually worth?
Intrinsic Value
3 Common forms of discounted cash flow (DCF) model
Free cash flow to firm (FCFF)
Free cash flow to equity (FCFE)
Dividend discount model (DDM)
True or False?
If markets are perfectly efficient, they reflect all past, present and future information
False
In a strong-form efficient market, traders with insider trading can/cannot (select one) make superior returns?
Cannot
The evidence into EMH suggests that all stock markets are atleast ____ form efficient
Weak
True or False?
The discount factor incorporates time value for money.
True
When was the highest reading for the S&P 500 P/E ratio (TTM)?
May 2009 amid earnings suppression during the Global Financial Crisis (GFC)
The Buffet Indicator shows the ratio of US stock market capitalisation to __?
US GDP
2 highest P/E ratio industries (S&P 500)
IT & Consumer Discretionary
