Intrinsic value
divyasree (Student CA IPC / IPCC) (41 Points)
04 November 2013
what is intrinsic value
1 Replies
CA Pallav Singhania
(IT System Auditor)
(33672 Points)
Replied 04 November 2013
Intrinsic value of shares means the real worth of Company shares & not merely its face value.
To determine intrinsic value, we take net assets method because the value of shares is reflected in the form of Assets/ Outside liabilities.
In other words, the effect of transactions from investment of equity shares in company gets its real time value from various Assets acquired/ disposed & liabilities paid / taken over.
The value that appear in balance sheet is the face value of shares. So to know correct value as on date we take real time figures of Assets & Outsiders Liabilities.
Intrinsic value is the total assets of the company reduced by third party liabilities incl of preference share capital..
Recent Topics
- GST registration -notice
- GSTIN Suspended Form GST Reg 17
- Request for GST Clarification regarding ITC
- Is Capital Gain exemption available for Property a
- EPF CONTRIBUION BY EMPLOYER
- Letter of credit -seller procedure
- Filling form 26 QB
- RPT AND ITC ISSUE
- Tax Liability and ITC Summary related Issues
- REQUIRED FORMAT FOR AMENDMENT TO PARTNERSHIP DEED
Related Threads
CAclubindia
