Repco Home Finance: Equity Valuation Decision and Analysis

Abstract

In early October 2016, Ashish Malhotra, an investment advisor with a brokerage firm, was examining the latest financials of Repco Home Finance Company (Repco), a professionally managed housing finance company headquartered in Chennai, Tamil Nadu. As an investment advisor, Ashish recommended undervalued stocks to the firm’s existing clients and helped manage their equity portfolios. To determine whether Repco would be a good bet for his client’s equity portfolios, he decided to value Repco through the residual income valuation (RIV) methodology generally used for banking and financial sector companies. This case puts students in a financial analyst role wherein they conduct RIV for Repco in order to discover potential undervalued stock for investment decision-making.

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2024 Sage Publications, Inc. All Rights Reserved

You are not authorized to view Teaching Notes. Please contact your librarian for instructor access or sign in to your existing instructor profile.
locked icon

Sign in to access this content

Get a 30 day FREE TRIAL

  • Watch videos from a variety of sources bringing classroom topics to life
  • Read modern, diverse business cases
  • Explore hundreds of books and reference titles