Explain the principal assumptions used in the ddm valuation

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Reference no: EM132054019 , Length: 3

Valuation of Financial Institution:

The purpose of this note is to carefully explain the general expectations and requirements for the Valuation of Financial Institution and Technical Analysis Assignment that is to be prepared.

The information and materials presented here are intended to make sure that you clearly understand the general expectations and that there are no misunderstandings about what is to be done and what is expected.

Please review this material so that you are familiar with the specific requirements that are be followed in the preparation and submission of the Assignment.

This Assignment comprises 15% of the final course grade. It will take some time and effort to produce high quality analysis.

1. Prepare a valuation of a large financial and banking institution. This should involve: (1) Dividend Discount Model valuation; (2) Valuation by Comparables (use multiples - Price to Earnings Ratio, Price to Book Value Ratio, etc.; Morningstar.com has several ratios under "Valuation"); and, Damodaran's Excess Returns Model (Excel model provided).

2. Explain the principal assumptions used in the DDM valuation?

3. Are the valuations consistent - why or why not?

4. What special challenges or issues did you encounter with the valuations?

3 to 5 pages

Attachment:- Excess Returns Model.rar

Reference no: EM132054019

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