What are the different methods of valuing a share?

Methods of Valuation of Shares (5 Methods)

• A. Asset-Backing Method:
• B. Yield-Basis Method:
• C. Fair Value Method:
• D. Return on Capital Employed Method:
• E. Price-Earnings Ratio Method:

Which method is best for valuation of shares?

Following are generally accepted methodologies for valuation of shares / business:

• Net Asset Method.
• Discounted Cash Flow Method.
• Earnings Capitalisation Method.
• EV/EBIDTA Multiple Method.
• Comparable Transaction Method.
• Market Price Method.

What are the 4 main valuation methods?

4 Most Common Business Valuation Methods

• Discounted Cash Flow (DCF) Analysis.
• Multiples Method.
• Market Valuation.
• Comparable Transactions Method.

What are 3 valuation methods?

When valuing a company as a going concern, there are three main valuation methods used by industry practitioners: (1) DCF analysis, (2) comparable company analysis, and (3) precedent transactions.

What is basic share valuation model?

So, what is this magic model? The basic valuation model is the discounted cash flow model: quite simply, the value of ANY investment is the sum of its future cash-flows. The future cash-flow for a single year is written algebraically as Ci/(1+r) (where C equals the cash flow, i is the year and r is the discount rate).

What are different types of valuation?

Special Considerations: Methods of Valuation

• Market Capitalization. Market capitalization is the simplest method of business valuation.
• Times Revenue Method.
• Earnings Multiplier.
• Discounted Cash Flow (DCF) Method.
• Book Value.
• Liquidation Value.

What are the different types of valuation?

What is investment method of valuation?

The investment method is used where there is an income stream to value, i.e. the property is tenanted. This can include commercial, residential, retail, industrial and agricultural properties. To use the investment method, candidates will need to be able to assess rental values (market rent) and a market-based yield.