Module 10: Discussion Forum 

This week’s readings address valuing stocks, although the concepts  of valuation apply to many aspects of the firm. Explain the differences  between market price per share, and intrinsic value (a fundamental  price), and factors that determine the fundamental price of a stock.

Then, select a publicly traded company in Saudi Arabia, calculate  its fundamental price per share, compare the fundamental price per share  with market price per share and decide if it is underpriced,  overpriced, or fairly price. (Make sure your selected company is  different than your classmates’). Explain why these concepts are  important to business leaders in Saudi Arabia and Saudi Vision 2030.

Select an article that relates to these  concepts and explain how it relates to doing business in Saudi Arabia.

For your discussion post, your first step is to summarize the  article in two paragraphs, describing what you think are the most  important points made by the authors (remember to use citations where  appropriate). For the second step, include the reference listing with a  hyperlink to the article. Do not copy the article into your post and  limit your summary to two paragraphs. Let your instructor know if you  have any questions and enjoy your search.

You are required to reply to at least two peer discussion question  post answers to this weekly discussion question and/or your instructor’s  response to your posting. These post replies need to be substantial and  constructive in nature. They should add to the content of the post and  evaluate/analyze that post answer. Normal course dialogue doesn’t  fulfill these two peer replies but is expected throughout the course.  Answering all course questions is also required.

Required

• Chapter 8 in Foundations  of Finance – The Valuation and Characteristics of Stocks
• Ali, S., Shahzad, H. J. S., Raza, N., & Al-Yahyaee, K.  H. (2018). Stock market efficiency: A comparative analysis of Islamic  and conventional stock markets. Physica  A: Statistical Mechanics and its Applications, 503, 139-153.
• 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.