Fundamental Analysis

According to the reading.

Which are the two most important valuation methods?

• Discounted cash flow and financial ratio

• Multiples and cash flow

• Multiples and Discounted cash flows

Which is the multiple which divides a company´s stock price by its earning per share?

• Price to shareholders

• Price to equity dividend P/Ed

• Price to earnings P/E

EV (Enterprise Value ) is the sum of .....

• Debt and Equity

• Debt and Dividend

• Debt and Assets

Calculate the following Multiple:

EV/EBITDA

Debt: $1000

Equity: $200

EBIT: $350

Depreciation and Amortization: $200

• 3.42x times

• 2.85x times

• 2.18x times

Comparing the value of Facebook and Twitter users was faulty Why?

• No Varying leves of engament with the platform

• Different demographics of the user base

• None different possibilities for monetizing their users for the tow platforms.

Project A has a payback period of less than 2 years.

Project B has a payback peropd of 3 years.

Payback period is your decision making criterion.

Which project would you choose?

• Project B

• Project A

• None of the projects

Choose the best project, consider a discount rate of 10%:

Project A, Payback method 1 year and NPV: $193,160

Project B, Payback method 2 year and NPV: $354,700

• Project A

• Project B

Which of the following is not an example of valuation multiple?

• Price to earnings

• Enterprise value to EBITDA

• Current assets to current liabilities