Stock and company valuation

Stock and company valuation

Bachelor of Business Studies (BBS) — Fourth Year

Subject: Fundamentals of Investment (FIN 253)

Unit 6: Common Stock Analysis and Valuation

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

• Explain the scope and key elements of stock and company valuation.
• Apply the relevant financial concepts or calculations and explain their assumptions, risks and analytical limits.

Curriculum Scope

• The valuation process
• Stock valuation models: the dividend valuation model, other approaches to stock valuations, other price relative procedures
• Valuing a company

Detailed Microsyllabus

1. Valuation process

   1. Cash flows, required return and assumptions.
   2. Dividend model.
   3. Alternative and relative-price approaches.

2. Company valuation

   1. Define the claim or business valued.
   2. Use a coherent model and comparable inputs.
   3. Assess sensitivity and limitations.

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Curriculum reference: Tribhuvan University, Faculty of Management, revised four-year BBS curriculum, PDF pages 89–91.

Source note: The curriculum scope above is retained from the existing TU syllabus breakdown. The numbered study subtopics are editorial elaborations for teaching and study, rather than a separately issued TU syllabus. Unit or component allocations apply at their stated level; no separate topic hours or marks are assigned here. Examples involving current laws, rates, institutional products or Nepalese status must identify the relevant period and official materials; no changing numerical or legal requirements are invented here.