Page 50 - MAC4861_2 Finance class slides part 2

VALUATIONS

Outcomes

• Display an understanding of the complexities and uncertainties
underlying the various valuation approaches, methodologies,

methods and models suitable to business and equity valuations.

• Use a range of skills to perform, and professionally present,

advanced business and equity valuations using the following
valuation methodologies/methods/models: (1) price of recent
investment, (2) net assets, (3) earnings multiples (several), (4)

market price multiples, (5) Gordon Dividend Growth Model, and
(6) models based on free cash flow.

• Discuss the various considerations and recommend ways in which
an entrepreneur could prepare for the sale of his/her business.

• Identify the critical assumptions and facts that underlie the

valuation estimate.

• Source : Chapter 11 of Managerial Finance and UNISA

MAC4861/2 tutorial letters

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