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Securitie Analysis Note Sheet

  • Submitted by: Westphaldd07
  • on April 16, 2015
  • Category: College Admissions
  • Length: 686 words

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Below is a free excerpt of "Securitie Analysis Note Sheet" from Anti Essays, your source for free research papers, essays, and term paper examples.

Section 1 Whole Brained Investing
Separate and distinct things not to be confused, as every thoughtful investor knows, are real worth and market price. – Theory of investment Value, John Burr Williams   \   Intrinsic, Fair, Economic Values – Refers to the estimated value of a security based on a careful analysis of the underlying business and investment characteristics; Financial professionals most often rely on discounted cash flow analysis to determine intrinsic value   \   Fundamental, intrinsic, owners’ return and Economic Yield – Intrinsic value computes a price bsed on given cash flows and discount rate; Fundamental, Intrinsic, or Owners’ Returns computes the IRR based on given price and cash flows; Intrinsic R is the return the owners of the company will realize given cash flow estimates   \ Valuation Unknowns – Intrinsic Value, none of the components are known 1. Cash Flows are estimates 2 Discount rate is estimate; Intrinsic Return price is known 1 Cash flows are estimates; your estimates of these inputs may/will differ from every other analyst, therefore your estimate of intrinsic value will also differ \ EMH Interpretation #1 – All publicly available info is incorporated into asset prices; implication: since all that is known is already considered, future price changes are random \ Interpretation #2 – Market prices accurately reflect the true intrinsic value of an asset; implication: asset prices and asset values are always closely aligned, such that superior security analysis can’t uncover mispriced assets \ EMH – Interpretation #1 is broadly accepted to some degree; #2 is an incorrect reading of EMH; EMH doesn’t claim that assets are always correctly priced, only future prices are unpredictable \ Investment vs Speculation – Investment is the purchase of an asset based on its expected cash flows or returns; Speculation is the purchase of an asset based on the expectation of future price increases – Fundamental Return: profiting from the economic success of...

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Securitie Analysis Note Sheet. Anti Essays. Retrieved December 18, 2018, from the World Wide Web: http://trenmayamx.com/free-essays/Securitie-Analysis-Note-Sheet-728731.html