Case Study #3: Chapter 6 Business Analysis A business can be valued by capitalizing its earnings stream. What financial figures associated with shares of stock might be used in the calculation....

Case Study #3: Chapter 6 Business Analysis

A business can be valued by capitalizing its earnings stream.

• What financial figures associated with shares of stock might be used in the calculation. Consider the per share figures and ratios discussed in chapter 3 including EPS, dividends, book value per share etc.


• Does one measure make more sense than the others?


• What factors would make a stock worth more or less than your calculated value?