Theory refresher - financing strategies - Part 2 - Business Valuation and Efficient Market
Taught by Stuart Murphy · AI tutor support included
You’ll learn how to value a business using asset-based, earnings-based, discounted cash flow and market-based methods, and how to judge which approach is most suitable in an exam scenario.
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In this lesson
- 0:00 Introduction to business valuation
- 0:53 Comparing business valuation methods
- 5:22 Applying the net assets method
- 7:01 Earnings, cash flow and market benchmarks
- 8:14 Share price and market signals
- 9:11 Understanding beta and systematic risk
- 10:29 Interpreting falling share prices
- 11:50 Board actions to support share price
About this lesson
The lesson also explains efficient markets, beta, share price movements and how boards can communicate strategy to manage investor expectations. You’ll apply these techniques to service businesses and listed companies, considering goodwill, future earning potential, growth, risk, gearing and forecasting uncertainty. This Core activity C refresher is particularly relevant to CIMA case study preparation, helping you support valuation recommendations with clear assumptions and practical analysis.
Duration: 13m
Transcript
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