Building blocks and case studies on the financial analysis and valuation of public equities.
Introduction to price and market capitalization.
The income statement, revenue, gross profit, operating profit, net income, ROA and ROE.
Earnings, EPS (earnings per share) and how they relate to the income statement and balance sheet.
Price to Earnings Ration (or P/E ratio).
Discussion of the price-to-earnings ratio.
A discussion of the various ways to measure return on assets.
More on the return on asset discussion.
Depreciation a capital asset.
Introduction to amortization.
A situation where the price to earnings ratio seems to not fairly price an asset.
Solving the P/E conundrum by looking at a different valuation metric (enterprise value).
Review of Enterprise Value and comparing it to EBITDA.