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Invest in Sri Lankan stock market
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Module 7
Principles of Stock Valuation
1
Intrinsic Value vs. Market Price
Explain the concept of intrinsic value versus market price.
2
Absolute vs. Relative Valuation
Distinguish between absolute valuation (e.g., DDM, DCF) and relative valuation (e.g., P/E).
3
Mastering P/E and P/B Ratios
Calculate and interpret key valuation ratios: Price-to-Earnings (P/E) and Price-to-Book (P/B).
4
Relative Valuation: P/E and P/B Multiples
Apply relative valuation using P/E and P/B multiples to compare stocks within an industry.
5
Relative Valuation: Is the Stock Over or Undervalued?
Identify when a stock may be overvalued or undervalued based on relative valuation analysis.
6
Understanding the Dividend Discount Model (DDM)
Explain the conceptual framework of the Dividend Discount Model (DDM) for valuing dividend-paying stocks.
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Qualitative Analysis: Business and Competition
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Investment Strategy and Portfolio Theory