 Fundamentals of Investment Management, 7/e Geoffrey A. Hirt,
DePaul University Stanley B. Block,
Texas Christian University
Valuation of the Individual Firm
Chapter Objectives
- Understand the basic valuation process as it relates to earnings and dividends.
- Explain the related concepts of risk and return.
- Be able to use various present value-oriented valuation models.
- Describe the role of the price-earnings ratio in determining value.
- Explain how an individual stock's price-earnings ratio is related to the market.
- Explain techniques for forecasting earnings per share.
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