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.
Company : almarai
https://www.almarai.com/
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
Chapter 8 PowerPoint slides SEU_FIN500_PPT_Mod10_Ch08.pptx
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
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