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Concepts of valuations by Visshal Thakkar

Evaluation is a concept that has emerged as a prominent process of assessing, testing and measuring. Its main objective is Qualitative Improvement. Evaluation is a process of making value judgements over a level of performance or achievement. Market Value (MV) of a listed share is the price of the share quoted on a recognized stock exchange.<br>

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Concepts of valuations by Visshal Thakkar

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  1. Concepts of Valuation Presented By: Vishal Thakkar ConTeTra Universal LLP Vishal.Thakkar@contetra.com +919320007891

  2. Concept of Valuation of Equity Shares • Face Value • Book Value • Market Value

  3. Face Value is par value of the share appearing on the face of share certificate = Rs. 10 per share. Book Value is the net worth divided by a no. of outstanding shares. = (Share Capital + Reserves) / No. of outstanding shares. = Rs. 70 Cr. / 1 Cr. = Rs. 70 per share. Valuation of Equity Shares: Face/Book Value

  4. Valuation of Equity Shares: Market Value • Market Value (MV) of a listed share is the price of the share quoted on a recognized stock exchange.

  5. Current Valuations of select Companies ** As on 05/02/2018

  6. Price Earning Ratio • PE = MV / EPS 100 / 10 = 10 • PE is driven by a no. of subjective and objective factors associated with the company and the industry it belongs to: • Projected Growth of sales, profit,cash flow and EPS. • Company brand equity, management practices, corporate governance. • Market sentiment • MV = EPS x Price Earnings (PE) Ratio • EPS = PAT / No. of outstanding shares

  7. Current PE Ratios of select Companies ** As on 05/02/2018

  8. Market Value of a Company • Market Value of a company or Market Capitalization is the price you will pay to buy all the shares of a company at a given point of time. = No. of shares outstanding x Market value of a share. • For Example, market capitalization of Havell’s is as follows: No. of Shares = 62.51 Crs Price of a share = 501.10 per share Market Cap. = 31,323.76 Crs

  9. Q & A

  10. Thank you!!

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