Classroom Analysis of How to Value Shares of Public Corporations: A Pedagogical Endeavor Including Earnings and Dividends Expectations Formation and Hybrid Modeling

Authors

Abstract

This paper endeavors to render the evaluation of shares in publicly-traded corporations simpler and broader by: (a) developing a more useful and understandable version of the application of price-earnings ratios to stock valuation; (b) acknowledging the existence of the price-dividend ratio and its applications; (c) demonstrating formally how future dividends expectations and future earnings expectation can be formed; (d) expounding upon the dividend discount and earnings discount models and how a hybrid model can be formed; and (e) elaborating how the dividend discount model, the earnings discount model, and the price earnings framework can be synthesized into a hybrid model.

Recommended Citation

(2026) "Classroom Analysis of How to Value Shares of Public Corporations: A Pedagogical Endeavor Including Earnings and Dividends Expectations Formation and Hybrid Modeling," Journal of Economics and Finance Education: Vol. 14: Iss. 1, Article 10.
Available at: https://scholarship.rollins.edu/jefe/vol14/iss1/10