Until March 30, 2013 from January 2008, the bank’s stock had tripled under its new direction. The analyst wondered whether deploying funds in the bank would afford any significant yields. He decided to use the available financial information and the residual income valuation method to forecast the business’s stock price.
Learning Objective: Pupils are introduced to the utilization of residual income valuation methodology to identify a potential investment objective. Two Microsoft Excel docs are also accessible: a student spreadsheet and an instructor spreadsheet. Subsequent to conclusion of the case, students will have the ability to do the following:
Use a strengths, weaknesses, opportunities, and threats analysis to determine hazards and the opportunities related to a potential investment target.
Understand the essential premises and mechanisms of the residual income valuation methodology.
Perform a valuation of stocks using the residual income valuation methodology.
Publication Date: 05/24/2016
This is just an excerpt. This case is about Finance
Related Case Solutions & Analyses:
Thunderball (C)
HelloWallet
AMG Inc. & Forsythe Solutions: Lease vs. Buy Decisions
The Maple Acquisition of the TMX Group Inc.
Crowdfunding at the Brooklyn Warehouse
Merrill Lynch: Supernova
The Delhi Land and Finance IPO: To Be or Not to Be?
Understanding Basic Financial Statements
International Investment Report
Le Taux Modèle: ING Direct, A Growing Success Story
