Subject category:
Finance, Accounting and Control
Published by:
Harvard Business Publishing
Version: 27 March 2017
Length: 33 pages
Data source: Published sources
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Abstract
Core curriculum readings in financial accounting cover the fundamental concepts in financial accounting. Many readings include videos and Interactive Illustrations to help readers master complex concepts.The objective of this reading is to introduce two fundamental investment principles that underlie stock valuations and how these principles apply to two popular approaches to valuing stocks: multiples and discounted future earnings. This reading includes two Interactive Illustrations: 'Valuation Using Abnormal Earnings,' which allows readers to calculate stock value using the discounted abnormal earnings method, and 'Price-to-Book Multiple, ROE, and Growth Rate,' which shows the relationship between those three measures.
About
Abstract
Core curriculum readings in financial accounting cover the fundamental concepts in financial accounting. Many readings include videos and Interactive Illustrations to help readers master complex concepts.The objective of this reading is to introduce two fundamental investment principles that underlie stock valuations and how these principles apply to two popular approaches to valuing stocks: multiples and discounted future earnings. This reading includes two Interactive Illustrations: 'Valuation Using Abnormal Earnings,' which allows readers to calculate stock value using the discounted abnormal earnings method, and 'Price-to-Book Multiple, ROE, and Growth Rate,' which shows the relationship between those three measures.