Share Valuation

Others 505 views 2 replies

 

I have to do an assignment related to valuation of shares of a unlisted public limited company. Which method to use? Please help me how to do it ? Thanks in advance. 

Replies (2)

plzzzz help..............

Hey angshuman....by default u can value any company using the dicounted cash flow technique...only factor that needs to be taken care is taking the appropriate discount rate

 

In case that proves too taxing for you and there are similar companies for which valuation has been done or they are listed..you can use multiples method...like Price/book value or Price/earnings (preferred). Choice of ratio sometimes depends on the sector as well...multiples  method is by far the most simple method of valuing companies...

 

actually valuation is a very subjective technique and to a very large extent depends on the information availability as well...so choose the appropriate method accordingly..


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