Equity Securities

Synopsis

Over the last decade, the equity market has evolved significantly, driven by the emergence of technology companies, the surge in ESG (Environmental, social, and corporate governance) investments, and heightened geopolitical risks. These novel developments bring new challenges to the analysis of equity securities. By embracing these evolving dynamics, this course aims to deliver students a thorough understanding of the principles and methodologies behind equity securities analysis, with a particular focus on asset valuation. Valuation stands as a pivotal factor in all investment choices, whether they involve buying, selling, or holding assets. This course will cover valuation models employed in equity markets, including both fundamental analysis and technical analysis.

Level: 3
Credit Units: 5
Presentation Pattern: EVERY JAN

Topics

Basics of equity analysis and valuation
Estimating and categorising cash flows
Estimating cost of capital in light of recent financial developments
Growth stages of firms
Estimating growth
Estimating terminal value
Dividend discount models
Free cash flow models
Residual income models
Technical analysis
Earnings multiples and revenue multiples
Relative valuation models

Learning Outcome

Examine the functionality of different valuation models
Evaluate the strengths and weaknesses of valuation models and judge when a valuation model is appropriate
Calculate the value of a company’s shares and discuss the impact of recent financial developments on the valuation
Categorise and estimate different sources of cash flows
Analyse the competitive advantage, industry structure and sustainability of return for a company
Implement the valuation models to analyse equity securities and create valuation reports

Full-time Programmes Part-time Programmes / CET Courses

Singapore University of Social Sciences

Equity Securities