Paper Trading and Stock Valuation
Yinghao Wang
Tina Chen
• Maintain a paper trading account with 100K
dollars
• Goal: 110K by the end of semester
• “Invest in companies, not in the stock
market.” — Peter Lynch
Methodology
• Industry analysis
• Type of company: slow growers, stalwarts, fast
growers, cyclical, or turnarounds?
• Earnings, Earnings, Earnings
• Key ratios or numbers: P/E, percent of sales,
the cash position, the debt factor, dividends,
book value, cash flow, inventories, pension
plans, growth rate, hidden asset … …
• Valuation: DCF, WACC
Schedule
• Flexible
• Analyze our position and adjust portfolio