can u tell me the concepts of valuation in stock market?
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04-08-2014, 04:23 AM
Post: #2
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It is a very complex idea. value of a company is its current value plus all its future revenues together. In share valuation you forcast how much a particular company may earn in future and then by some calculation you determine what the value of all those future earning would be at present term (one dollar today is more valuable than a dollar given to you next year). Then you add it to assets of the company. This would be total value. This company may have 1 million shareholder. then total vaue is divided by one million and you would have value of each share. If it is higher than market share then it is underpriced in the market. If company has some debt it should also be taken into account in calculations. Just know that each public company is a combination of debt and equity (shares).
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can u tell me the concepts of valuation in stock market? - rajan - 04-08-2014, 04:19 AM
[] - kia - 04-08-2014 04:23 AM
[] - Fundu Vishy - 04-08-2014, 04:29 AM
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