STOCK AND BOND VALUATION

background reading

Required Reading

Start off with these two tutorials that will give you an overview of the basic methods of valuing stocks and bonds from Subjectmoney:

Subjectmoney. (2013, January 2). How to price/value bonds - formula, annual, semi-annual, market value, accrued interest [Video file]. Retrieved from  https://www.youtube.com/watch?v=7zCqoED8MVk

 

Subjectmoney. (2013, January 3). Dividend discount model (DDM) - constant growth dividend discount model - how to value stocks [Video file]. Retrieved from  https://www.youtube.com/watch?v=n76Pz3HOBPo

 

Now dig much deeper into bond and stock valuation with the following books chapters. They cover not only the computational methods but also provide a general overview of stock and bond markets:

Read “The Basics of Bond Valuation,” from Volume I (pp. 207-224) in: Fabozzi, F. J. (2013). Encyclopedia of Financial Models. “Bond Valuation.” John Wiley & Sons, Inc. ISBN:1-118-00673-9, 978-1-118-00673-3. Available in the Trident University Library.

Fabozzi, F. J., & Peterson Drake, P. (2009). Chapter 7: Asset valuation: Basic bond and stock valuation models. In Finance: Capital markets, financial management, and investment management. Wiley. Available in the Trident Online Library.

Finally, for some examples of valuation calculations in Excel see the following videos:

Moy, M. (2014). Bond valuation in Excel. Retrieved from  https://www.youtube.com/watch?v=H-_NP0UxX_U

Girvin, M. (2010). Stock valuation with dividend growth model. ExcellsFun. Retrieved from   https://www.youtube.com/watch?v=cbRIhwkGAnQ

Girvin, M. (2010). Stock value based on present value of future dividend cash flows. ExcellsFun. Retrieved from  https://www.youtube.com/watch?v=G2VIY5E3I3s&t=163s