Student Work

Analysis of stock valuation methods for firms in high-growth industries

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Over the past couple years we have witnessed the impressive performance, followed by the demise, of Internet related stocks. Share prices skyrocketed while many valuation models suggested that these stocks were grossly overpriced. These predictions largely reflected the conventional wisdom that the value of a stock depends on its present value of future cash flows. These cash flow predictions are based on existing financial performance and forecasts of future earnings growth. In this project we will analyze current stock valuation methods, and then apply the appropriate models to firms within the networking industry. We will base our research on the earnings and revenue growth of individual firms, in addition to the industry's growth as a whole.

  • This report represents the work of one or more WPI undergraduate students submitted to the faculty as evidence of completion of a degree requirement. WPI routinely publishes these reports on its website without editorial or peer review.
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Identifier
  • 02D370M
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Year
  • 2002
Date created
  • 2002-01-01
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