Stock valuation

Stock Valuation and Risk: How to Value Stocks and Measure Risk

Book: Financial Markets and Institutions, 11th Edition Author: Jeff Madura Publisher: Cengage Learning, 2015 Series: Chapter 11 Review

How much is a stock actually worth? That is the central question of Chapter 11. And the honest answer is: it depends on who you ask and what model they use. Madura walks through the main valuation methods, explains how risk gets measured, and then tackles whether markets are even efficient enough for any of this to matter.