Financial Modeling and Valuation: A Practical Guide to Investment Banking and Private Equity
by Paul Pignataro
PART Two
Valuation
Valuation is crucial in investment banking. How much is this entity worth? What is the appropriate price of this stock? We will take a look at Walmart, analyze its financial standing, and determine if the stock is overvalued or undervalued as done by Wall Street analysts.
The goals of this section are:
As a disclaimer, there are a lot of excellent valuation books. This section does not set out to be a complete and thorough explanation of valuation. Rather, it is meant to be a practical methodology towards utilizing valuation. We will go through a basic understanding of valuation and the concepts, but a deep discussion of the ever-changing theories and the proofs of such is beyond the scope of this book.
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