Equity share valuation

yasaswi gomes (My grammar is 💯 good I)   (7290 Points)

19 November 2021  

Hi,

FYI, these are some of the common methods of finding the share price.

The earnings yield valuation method

Market valuation or capitalisation = P/E ratio x EPS or P/E ratio x Total earnings

The dividend growth model

The P/E ratio (earnings) method of valuation

Terminal values and company valuation= FCF/WACC

Asset based valuation = Total assets - Creditors - Pref shareholders 

Intrinsic value = PV of TV/FCFE cash flows / No. of shares outstanding

yield method (with dividend and without dividend) and fair value method = intrinsic method + yield value/2

Txs.