1 / 6

Methods to Calculate Valuation of a Company

Company valuation can be calculated using methods like Discounted Cash Flow (DCF) for future cash flows, P/E ratio for price vs earnings, P/B ratio for price vs book value, EV/EBITDA for operating performance, comparables against peers, and asset-based valuation for net worth. Often, a mix is used for accuracy.

sri178
Télécharger la présentation

Methods to Calculate Valuation of a Company

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Read blog - https://navia.co.in/blog/how-to-do-valuation-of-a-company/ Methods to Calculate Valuation of a Company

  2. Read blog - https://navia.co.in/blog/how-to-do-valuation-of-a-company/ Methods to Calculate Valuation of a Company • Valuing a business is key for investors & entrepreneurs. • Here are the top methods every investor must know.

  3. Cash Flow & Market Value Methods Read blog - https://navia.co.in/blog/how-to-do-valuation-of-a-company/ Discounted Cash Flow (DCF) • Values company on future cash flows, discounted to present value. • Best for growth companies. Market Capitalization • Formula: Stock Price × Outstanding Shares • Easiest for publicly listed companies.

  4. Comparison-Based Methods Read blog - https://navia.co.in/blog/how-to-do-valuation-of-a-company/ Comparable Company Analysis (CCA) • Compare with peer companies using P/E, P/S, EV/EBITDA. Precedent Transactions • Uses past acquisitions of similar firms as benchmarks. • Common in M&A deals.

  5. Asset & Multiples Methods Read blog - https://navia.co.in/blog/how-to-do-valuation-of-a-company/ Asset-Based Valuation • Formula: Total Assets – Liabilities = Equity Value • Best for asset-heavy industries. Revenue & Earnings Multiples • P/S (Price-to-Sales) & P/E (Price-to-Earnings) ratios. • Quick way to check if a company is undervalued or overvalued.

  6. Disclaimer Investment in securities market are subject to market risks, read all the related documents carefully before investing. The securities quoted are for illustrative purposes and are not intended as recommendations. Brokerage will not exceed the SEBI prescribed limit. Navia Markets Ltd ,SEBI Registration No.INZ000095034-NSE Member code for CM, FAO & CD: 07708 - BSE Clearing No. for CM, FAO & CD: 6341-MCX Member ID: 45345 NSDL DP ID: IN300378-CDSL DP ID: 12086500-SEBI Registration No. for DP: IN-DP-311-2017-GST Registration number :33AAACM4739R2ZZ-Registered office: Ganga Griha, 4th & 5th Floor, No.9, Nungambakkam High Road, Chennai - 600 034 Email ID: ig@navia.co.in - Contact No: +91 70100 75500 https://bit.ly/naviadisclaimer Read blog - https://navia.co.in/blog/how-to-do-valuation-of-a-company/

More Related