Equities - Part 11


This eCourse consists of two modules. Module 1 focuses on the principles that analysts employ to arrive at the intrinsic value of a stock and some key terminology that underpins those principles. It examines the relationship between the market price of the stock and the intrinsic value and what this means for equity investors. The tutorial also introduces the various valuation models that analysts use when valuing stocks.

Module 2 looks at the processes, frameworks, and techniques that equity analysts use to provide a comprehensive company profile of these nonfinancial factors.


On completion of this course, you will be able to:
- Define the different types of equity value
- Recognize why investors demand a required rate of return on equity securities
- Identify the relationship between risk and return for equity securities
- Recognize the different types of model that analysts use when valuing equities
- List the tools that can be used to identify peer group companies
- Recognize how PESTEL analysis and Porter’s five forces analysis are used by equity analysts
- Recognize how an industry’s stage within its lifecycle can influence the assessment of a company’s competitive position
- Identify the importance of analyzing a company’s internal structure, processes, and operations


Module 1: Equity Valuation – An Introduction
Topic 1: Types of Equity Value
Topic 2: Required Rate of Return
Topic 3: Risk & Return
Topic 4: Equity Valuation Models

Module 2: Industry & Company Analysis
Topic 1: Identifying Peer Companies
Topic 2: External & Industry Analysis
Topic 3: Industry Lifecycle Analysis
Topic 4: Internal Company Analysis


Relevant Subject
Type 1 - Dealing in securities
Type 4 - Advising on securities
Type 6 - Advising on corporate finance
Type 9 - Asset management
SFC:1.50, PWMA:1.50
Non-Member: HK$630
Staff of Corporate Member: HK$425
All Member: HK$425