Chap006_lgm.ppt
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Chap006_lgm.ppt

Chap006_lgm.ppt

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CHAPTERSIXChapter6Reminder:ResidualEarningsValuationProtectsYouFromPayingTooMuchForEarningsBewareofPayingTooMuchforEarningsGrowthAbnormalEarningsGrowth(AEG)AEGValuationModelTheTrailingP/EandForwardP/EP/BValuationforDellInc.(Ch.5)FromP/BValuationtoP/EValuationThePrototypeSavingsAccountCum-DividendEarningsNormalEarningsAbnormalEarningsGrowth(AEG)LessonsfromtheSavingsAccountAnAnchoringPrincipleMeasuringAbnormalEarningsGrowthforEquitiesCum-dividendEarningsGrowthRateAlternativeCalculationofAEGStepsinApplyingtheModelApplyingtheModelApplyingtheModel:ASimpleExampleandaSimpleModelACase1Valuation:GeneralElectricACase2Valuation:DellInc.ConvertingAnalysts’ForecaststoaValuation:GoogleInc.AbnormalEarningsGrowthisEqualtotheChangeinResidualEarningsForecastingChangesinResidualEarningsProtectionFromEarningsCreatedbyAccounting:ARestructuringChargeAbnormalEarningsGrowthAnalysis:AdvantagesandDisadvantagesReverseEngineering:S&P500ReverseEngineeringGrowthForecasts:GoogleImpliedEarningsForecastsBuildingBlocksofanAEGValuation:Google