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DAY TWO |
Tuesday,
July 24th
|
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BOTTOM UP
APPROACHES & DERIVATIVES |
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EQUITY VALUATION AT
THE INDIVIDUAL COMPANY LEVEL
Share Prices and
Market Capitalisation
Book Value, Price to
Book Value
P/E ration and how
they are determined
Price/Sales Multiples
Return on Equity and
EPS as measures of performance
Du Pont Analysis
Enterprise Value and
EBITDA |
CASE STUDY
A valuation model for IBM |
|
CASH MATTERS
Cash v Accountancy
Profit
What is Free Cash Flow
("FCF") valuation?
The Discounted Cash
Flow Model
The Gordon Growth
Model |
|
VALUED ADDED
APPROACHES: ROE vs WACC
Components of WACC
Variations in WACC as
the capital structure changes
WACC compared with ROE
Alternative measures
of value added: CFROI etc. |
|
USING DERIVATIVES
IN EQUITY PORTFOLIOS |
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INDEX FUTURES
Calculations of
hedging requirements using stock index
futures
Comparisons of returns
using hedging techniques & 'going into cash'
Using SPDRs & index
futures |
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OPTIONS STRATEGIES
Portfolio insurance
using puts
Portfolio hedging
using index futures
Delta neutral
portfolios & dynamic heding
Call options
strategies |
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CONCLUSION OF EQUITY
PORTFOLIO MANAGEMENT MODULE |
