calculation of fair value of shares


This query is : Resolved 

(Querist)
13 November 2007 to all of u,,

please send me the format of calculating the fair value of shares by book value method or P/E method.
And do tell me the steps of calculating also.
mail me at

cskanika@gmail.com
CS

kanika (Querist)
13 November 2007 please reply early

kanika (Querist)
13 November 2007 reply

KAAPIL (Expert)
13 November 2007 Dear Kanika,
I will mail you the format at 10 p.m. as I am in the class. Please check the mail after 10. Good Luck.

KAAPIL (Expert)
14 November 2007 Dear Kanika,
I am sorry for delay.

Step 1 Compute EPS of the Company on the balance Sheet date or Future Maintanable EPS.

Step 2 Ascertain the PE Ratio of the Industry as a whole.

PE ratio = MPS / EPS.

Risk adjustments may be made in appropriate situations.

Step 3 Value Per Share = Company's EPS * Risk Adjusted Industry PE Ratio.

Good Luck.

KAAPIL (Expert)
18 November 2007 I hope things are clear.


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