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Stock valuation and analysis

Course Description: This course aims to introduce students to the analysis and valuation of securities from both theoretical and practical perspectives. Students will gain a comprehensive understanding of stock returns, estimating the cost of capital, and alternative methods for valuing equity. The course will present economic analysis, industry analysis, and company analysis as the cornerstone of the valuation process. Students will apply a range of valuation approaches, including dividend discount models, free cash flow models, market-based valuation using price multiples and enterprise value with comparable company analysis, residual income valuation, and economic value added models. Students will also have the opportunity to use case studies to understand the stock valuation process and apply alternative valuation methods to actual financial data of companies in the Saudi and global markets, including the valuation of private companies.

Credit hours: 3

Objectives of the course :

Upon completion of this course, the student will be able to:
 Description of the stock valuation process, return concepts, cost of capital estimation, economic analysis, and industry and company analysis for the purpose of stock valuation.
Apply valuation models including discounted cash flow (DCF), free cash flow (FCF), market-based multiples, comparable company valuations, residual income, and economic value added (EVA) models to public and private companies.
Demonstrate analytical, computational, and critical thinking skills to solve and interpret case studies in stock analysis and valuation across various contexts such as mergers and acquisitions, and initial public offerings.
Prepare case studies on stock analysis and valuation using actual financial data for local companies.

Course outputs :

Knowledge and understanding:
Distinguishes between stock valuation models, stock return concepts, cost of capital estimation, and the characteristics of economic analysis, sector analysis, and company analysis.
Discuss the suitability and application of alternative valuation models, including dividend discount models, free cash flow models, multiples, comparable company valuation, residual income, and economic value added approaches.
 Evaluates public and private companies using modern valuation techniques by applying dividend discount models, free cash flow models, market-based models, residual income models, and economic value added to real financial data.
2) Skills:
Applies problem-solving and critical thinking skills to resolve complex and advanced issues in stock valuation.
Processes data and information quantitatively and/or qualitatively using relevant digital tools and techniques in complex and advanced contexts related to equity valuation.
3) Values, Responsibility, and Autonomy:
Analyzes professional and ethical standards for resolving dilemmas in equity analysis and valuation.

Additional information:

Last updated: 2026-04-26