ABCC-2022-005 (MC): “Sheng Siong: Residual Income Valuation”

Category: Accounting

Abstract: This case is used to demonstrate the implementation of the residual income (RI) model using mid-cap SGX-listed firm Sheng Siong. Students are provided with basic financial statements and forecast assumptions. They are to use the data to construct the condensed financial statements and to derive the equity valuation as at the beginning of 2022 using the RI model and discounted cash flow (DCF) model.

The case is useful for students to learn the mechanics of the RI and DCF model. The case can be done either as an in-class workshop/exercise or as an out-of-class assignment.

ABCC-2022-005 (MC): Sheng Siong: Residual Income Valuation