Approaches to common stock valuation

Yashkumar Hemantbhai Patel

Master's thesis

Abstract:

Main objective of this Diploma Thesis is to find the intrinsic value of common stock of chosen companies (Amazon, Walmart, Target and Costco which stocks are listed in NASDAQ) and compare results to point out the relative differences among them. Factors which affect the Intrinsic value of common stock will be identified using relevant techniques i.e. financial analysis, econometric modeling. This Diploma Thesis consist of two parts. Literature review provides theoretical background of two commonly used valuation approaches. First Method consider profitability, stability, earnings growth and dividends of a firm. The second method considers comparative value of the market stock price and also finds out rate of future growth applied by the market. Practical section starts with the financial analysis. It is followed by estimation of appropriate stock price using different stock valuation methods. In addition to this research, regression analysis will be included, which helps to identifies different internal and external factors that affect stock price of chosen firms.

Keywords

Stock Valuation, Financial Analysis, Intrinsic Value

Jazyk práce: English

Datum vytvoření / odevzdání či podání práce: 29. 11. 2021

Obhajoba závěrečné práce

• Vedúci: Ing. Pavel Srbek, Ph.D.

Czech University of Life Sciences Prague

Faculty of Economics and Management

Master programme / odbor:
Economics Policy and Administration / Business Administration