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Online Courses Professional Development Accounting Courses Finance: Stock Valuations and Derivatives

Finance: Stock Valuations and Derivatives

Created by: Sentinel | 9
5.0 900 views Prime
Last Updated 05/2021
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What you'll learn

Apply techniques of time value of money, discounted cash flows in the valuation of share, bond and investment proposals.
Analyse and forecast the value of stocks and derivatives using financial forecasting method and options valuation.

Skills covered in this course

7.3 Applied Finance 3 - Company & Stock Valuations / Derivatives

Overview

FAQs

Description

Description: This course introduces the fundamentals of corporate finance viewed from the perspective of the business manager. Once the course is completed, you will have learned company enterprise valuation method, stock valuation, fundamental and technical analysis, and option valuation. This course features dynamic and engaging video with audio narration, infographics and short quizzes to test your knowledge

 

Background: The goal of company valuation is to give owners, potential buyers and other interested stakeholders an approximate value of what a company is worth.

Due to the financing of a company by debt and equity, valuation techniques that focus on share deals either value the equity, resulting in the equity value (Eq. V.) or the total liabilities, stating the enterprise value (EV) or firm value (FV). The enterprise value is calculated by the following formula:

Enterprise Value = Market Capitalization +Debt +Preferred Share Capital + Minority Interest - Cash
and cash equivalents

Let’s discuss these components individually and the reasons why they are included in the calculation of enterprise value.

Market Capitalization:
Is the market value of common shares of a company. It is calculated by multiplying the current market price per share by the total number of equity shares of the company.

Debt:
Includes the bonds and bank loans. Items such as trade creditors are not included. Once a business is acquired, its debts become the responsibility of the acquirer. The acquirer will have to repay the debts from the cash flows of the business; therefore, they are added to the calculation of enterprise value.

Preferred Shares:
Redeemable preferred shares are in substance debt. They are debt to all intents and purposes.
Therefore, the existence of such preferred shares represents a claim on the business that must be factored into enterprise value (EV).

Minority Interest:
It is a non-current liability that represents the proportion of subsidiaries owned by minority shareholders.

Cash and Cash Equivalents:
Cash equivalents are investments that can be readily converted to cash. Common examples of cash equivalents include commercial paper, treasury bills, short term government bonds, marketable securities, and money market holdings.

Author

Sentinel | 9

90 Courses

Sentinel | 9 specializes in Business Education and Professional Development for managers and executives. Their catalog includes courses in Business Strategy, Marketing, Finance, and Digital Transformation. Each program blends academic knowledge with workplace application, making them ideal for corporate learners. Sentinel | 9 helps organizations strengthen management capabilities while supporting ongoing employee development. Their concise, modular training aligns with the needs of today’s business environment.

Frequently Asked Questions

This course is designed for employees who need to complete Finance: Stock Valuations and Derivatives training

Yes. This course is designed to meet applicable federal requirements and commonly mandated state standards. Always confirm specific state or industry requirements with your local regulations.

The course takes approximately 60 minutes to complete and can be paused and resumed at any time.

No. This course does not include a certificate of completion.

Yes. You can assign this course to individuals or groups using Coggno’s LMS, or purchase multiple seats for your team.

Yes. This course can be exported for delivery in most learning management systems (SCORM compatible).

Yes. The course is fully self-paced and available 24/7.

Yes. This course includes a knowledge check to reinforce learning and verify completion.

Learners have lifetime access from the date of purchase.

Yes. A preview is available so you can review the course format and content before purchasing.

Yes. Content is reviewed and updated as regulations and best practices change.

Yes. This course is available for free with an active Prime Subscription.

Yes. Refund requests can be submitted within 30 days of purchase.