Talk about the different share valuation techniques? Describe.
Discuss various methods of valuation of shares? Explain.
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Methods of Valuation of Shares
Valuation of shares is the process of determining the fair value of a company's shares, which is essential for investors, shareholders, and company management. Several methods are used to value shares, each with its own approach and assumptions. Some common methods include:
1. Net Asset Value (NAV) Method:
2. Earnings Capitalization Method:
3. Price-Earnings (P/E) Ratio Method:
4. Dividend Discount Model (DDM):
5. Comparable Company Analysis (CCA):
Conclusion: