Stock Price Valuation and Beta Calculation

1252 WordsJun 18, 20186 Pages
There are many choices in the market for the investors to generate more money and income with the capital that they able to invest. These tools are categorized into many different types of market such as equity market, bond market, and mortgage market, according to their characteristics. The markets are well-growing and establishing all around world due to the people’s awareness of investment, the globalization, the governments’ policies, and the change of technology. Equity market is one of the well performing markets. The companies raise fund from the public by listing themselves in the stock exchanges. Such objective can be done by distributing the common stock, preferred stock, and convertible securities. The voting rights, priority…show more content…
The price is expected to increase in future as well. The investors can have the dividends and gain the price appreciation of stock at the same time. Furthermore, Genting Berhad has been established for 50 years and it is under the Genting Group, which doing international businesses and has well performance. The investors’ confidence level and expectation towards the company’s performance is high. Besides, the rate to compensate the risks is set at the low rate. The paper manufacturing and electricity power generation and supply businesses will not affect much of the company’s performance. The company provides the electricity supply to the Tenaga Nasional Berhad with the set price and demand. Next, raw material for paper manufacturing is the recycle paper that collected in the nation, from another Genting Group’s company (Genting, n.d.). The international pulp price will have little effect on its cost of production. However, the unstable international price of crude palm oil will heavy affect the company’s profitability in the production. But the heavy demand from China and India and the prediction of lower soy oil supply will support the price and it is tend to increase (The Star Online, 2012). Therefore, the lower rate of 1.5% is given to the stock. Beta Calculation Next, the diversification is the idea of “not putting all of your eggs in one basket”. The investors can decrease the risks of their investments by

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