Company Valuation Through Ratios

IE code:
DF2-145-I-M
Language:   English
also available in Spanish
Format:  
Multimedia
Est. dedication time:
60 minutes
Academic Area:
Type of publication:
Technical Note
Company Valuation Through Ratios

Description

This interactive tutorial details the main ratios used in the financial world and their application in company valuations specifically the PER EV/EBITDA PER growth dividend yield and the price to book value.

As each of the ratios are explored their use in making company valuations across different sectors is shown. Students are then asked to make valuations for several companies using this method.

In addition a final exercise has been developed in which students have to make a company valuation using the discounted cash flow method as well as using the average PER and EV/EBITDA of the sector. The different results obtained are then compared with the price quoted on the stock market.