Valuing and Investing in Equity
In this second part of James's video on "What is Equity?", he continues to demystify equity-related concepts by explaining how the value of a share is determined and who the market participants are.
Overview
A shares valuation is typically based on the future cash flows and profitability of a firm. Investors are interested because hopefully they can profit from judging companies that are undervalued. They can also sell or ‘short’ shares that they believe are overvalued.
Key learning objectives:
How are shares valued?
What fundamental analysis is undertaken by investors?
What is active and passive investing?
Summary
Expert
James Eves
Career banker with over 25 years working in investment banking. James has worked in many aspects of banking including equity capital markets, origination, IPOs and hybrid capital.
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