There are multiple methods that can be used to determine a stock’s intrinsic value. These can include utilizing such factors such as dividend streams, discounted cash flows, residual income, comparable companies’ analysis, etc.

There are multiple methods that can be used to determine a stock’s intrinsic value. These can include utilizing such factors such as dividend streams, discounted cash flows, residual income, comparable companies’ analysis, etc. Select at least one approach and explain why you feel that is a good method for determining the intrinsic value of a stock.

Then, select a publicly traded company in Saudi Arabia, and use your selected method to determine what you consider is its intrinsic value and illustrate whether you feel the stock is underpriced, overpriced, or fairly price. (Make sure your selected company is different from your classmates’). Explain why these concepts are important to business leaders in Saudi Arabia and Saudi Vision 2030.

Search the SEU library or the Internet for an academic or industry-related article. Select an article that relates to these concepts and explain how it relates to doing business in Saudi Arabia.

For your discussion post, your first step is to summarize the article in two paragraphs, describing what you think are the most important points made by the authors (remember to use citations where appropriate). For the second step, include the reference listing with a hyperlink to the article. Do not copy the article into your post and limit your summary to two paragraphs. Let your instructor know if you have any questions and enjoy your search.

Required:

Chapter 8 in Foundations of Finance – The Valuation and Characteristics of Stock

Attia, M., Lassoued, N., & Sassi, H. (2019). Financial reporting timeliness and the value relevance of earnings: Evidence from banks in the MENA countries. The International trade journal, 33(3), 277-301. https://doi.org/10.1080/08853908.2018.1459212

Ahmed, H., & Elsayed, A. H. (2019). Are Islamic and conventional capital markets decoupled? Evidence from stock and bonds/sukuk markets in Malaysia. Quarterly Review of Economics and Finance, 74, 56-66. https://doi.org/10.1016/j.qref.2018.04.005

Recommended:

Chapter 8 PowerPoint slides  SEU_FIN500_PPT_Mod10_Ch08.pptx – Alternative Formats in Foundations of Finance – The Valuation and Characteristics of Stock

Jain, S., Agarwalla, S. K., Varma, J. R., & Pandey, A. (2019). Informed trading around earnings announcements—Spot, futures, or options? The journal of futures markets, 39(5), 579-589. https://doi.org/10.1002/fut.21983

Cheng, C.-M., YiHou, H. A., & Hu, M.-C. (2019). Investor Attention and Stock Price Movement. The journal of behavioral finance, 20(3), 294-303. https://doi.org/10.1080/15427560.2018.1513404