Professional Documents
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Earning Capitalization
Method (ECM)
Dividend Capitalization
Method
Fair Value
Method
Fair Value = Intrinsic Value + ECM
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Also Known as :
Intrinsic Value
Net Asset Value
Break up Value
Net Worth Per Share
Book Value Per Share
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Intrinsic Value
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Int. Value
+
Ex Dividend
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Div Per
Share
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1.
= Earning Rate
NRR
Earning Rate =
x 100
Share Capital
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NRR
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4. Valuation of Business
It can be on the basis of:
1. Shares
2. Cash Flows
1.
Number of
Shares
Value of
Shares
Value per share can be : MP , Intrinsic Value , Fair Value , ECM , DCM
2.
Discount Factor
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