Calculation of intrinsic value of shares

Others 1483 views 1 replies

Dear friends,

When we calculate intrinsic value of shares, why don't we consider miscellaneous expenses like Preliminary expenses and discount on issue of debentures ?

 

What is the reason for not taking those items in the balance sheet in our intrinsic value calculation ?

 

Replies (1)
When we calculate IV of shares, the basic formula is 'Assets-Liabilities' & resultant we get Net Assets which belong to Equity Shareholders & misc expenses like preliminary expenses & discount on issue of debs etc form part of EQUITY SHARE CAPITAL & not Assets or Liabilities. I hope ur confusion has been resolved.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 14 March 2026
Associate CA

N N V Satish&co

Hyderabad

CA

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 14 March 2026
Article Trainee

N N V Satish&co

Hyderabad

CA Inter

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 12 March 2026
Customer Relationship Executive

TAXLET

Calicut

B.Com

View Details
Company
Featured 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details