Valuations:

Businesses, Securities,

and Real Estate

Course Description:

This course covers valuations ranging from businesses, bonds, preferred stock and common stock to real estate. Business valuation is essentially a present value concept that involves estimating future cash flows of a business and discounting them at a required rate of return. The value of a bond is essentially the present value of all future interest and principle payments. Stock price may be expressed as a function of the expected future dividends and a rate of return required by investors. The Gordon’s valuation model reflects this process. Real estate valuation involves several rule-of-thumb valuation methods.

Learning Objectives:

Upon successful completion of this course, participants will be able to:

• Define a business valuation
• Describe the steps to be taken in valuation
• Explain general approaches to business valuation
• List and describe briefly each of various business valuation methods
• List the ways in which to market valuation services
• Determine the fundamental value of a security
• List the determinants of the price-earnings ratio
• Read and interpret beta
• Enumerate other pragmatic valuation approaches
• List some of the rule-of-thumb approaches to determining the value of an income producing property