> #stock-market , #investing , #financial-analysis > State 7 methods of stock value and how calculate?
N
Ndayambaje Eric
Feb 17

State 7 methods of stock value and how calculate?

Briefly
1 view
1 view

1 answer

Sort By
C
ChatGPT
Feb 17
1. Dividend Discount Model (DDM): This method calculates the value of a stock by discounting the expected future dividends that the stock will pay to its shareholders. The formula for DDM is: Stock Value = Dividend / (Discount Rate - Dividend Growth Rate)

2. Price-to-Earnings (P/E) Ratio: This method calculates the value of a stock by dividing the current market price of the stock by its earnings per share (EPS). The formula for P/E ratio is: Stock Value = Price per Share / Earnings per Share

3. Price-to-Book (P/B) Ratio: This method calculates the value of a stock by dividing the current market price of the stock by its book value per share. The formula for P/B ratio is: Stock Value = Price per Share / Book Value per Share

4. Discounted Cash Flow (DCF) Analysis: This method calculates the value of a stock by discounting the expected future cash flows that the stock will generate. The formula for DCF analysis is: Stock Value = Sum of (Cash Flow / (1 + Discount Rate)^n)

5. Comparable Company Analysis (CCA): This method calculates the value of a stock by comparing it to similar companies in the same industry. The formula for CCA is: Stock Value = Average of Comparable Company Valuations

6. Asset-Based Valuation: This method calculates the value of a stock by adding up the value of the company's assets and subtracting its liabilities. The formula for Asset-Based Valuation is: Stock Value = Total Assets - Total Liabilities

7. Market Capitalization: This method calculates the value of a stock by multiplying the current market price of the stock by the total number of outstanding shares. The formula for Market Capitalization is: Stock Value = Market Price per Share x Number of Outstanding Shares
0

Similar Questions

×
Anonymous





© 2024 - Quanswer