What is the primary focus of stage 3 in equity research?

Understanding the business Understanding the company's financial performance Stock price valuation Market analysis

What valuation technique is used to determine a company's intrinsic value?

Price-to-Earnings Ratio (P/E) Discounted Cash Flow (DCF) Comparable Company Analysis Asset-Based Valuation

What is the core concept of the DCF model?

Return on Equity (ROE) Earnings per Share (EPS) Net Present Value (NPV) Price-to-Book Ratio (P/B)

What is the opportunity cost in the pizza machine example?

The cost of ingredients for making pizzas The cost of maintaining the pizza machine The potential interest earned from a fixed deposit scheme The cost of hiring an employee to operate the machine

What is the Time Value of Money (TMV)?

The concept that money remains the same across time The idea that the value of money changes over time due to opportunity cost The principle of investing money in high-yield savings accounts The strategy of diversifying investments across different asset classes

What is the process of estimating the value of money we have today at some point in the future called?

Discounting Compounding Amortization Depreciation

What is the process of estimating the value of money receivable in the future in terms of today's value called?

Compounding Amortization Depreciation Discounting

What is the Net Present Value (NPV) of money?

The sum of all future cash flows The average value of all future cash flows The sum of all the present values of future cash flows The difference between the present value of cash inflows and outflows