Valuing StocksBY:NIDA AFZAL

1.1, Stocks and Stock Market

Common stock

Primary market

Initial public offering

Secondary market

Stock Market

Dividend

Dividend yield

Price-earnings(P/E)multiple

1.2 Values related to stocks

• Book Values

• Liquidation values

• Market Value

1.3,Valuing Common Stocks

• Cash dividend

• Capital gain

• Expected rate of return

• Dividend discount model

1.4,Estimating dividend

• Zero growth

• Constant growth

• Supernormal growth

1.5,Growth and Income stocks

• Payout ratio

• Plowback ratio

• Present value of growth opportunites

• Method1;technical analysis

• Method2;fundamental analysis

• A theory to fit the facts