The process of determining the current worth of an asset or company. There are many techniques that can be used to determine value, some are subjective and others are objective. For example, an analyst valuing a company may look at the company’s management, the composition of its capital structure, prospect of future earnings, and market value of assets. Judging the contributions of a company’s management would be more of a subjective valuation technique, while calculating intrinsic value based on future earnings would be an objective technique.
Role of Valuation:
Valuation is useful in a wide range of tasks. The role it plays, however, is different in different arenas. The following section lays out the relevance of valuation in portfolio management, acquisition analysis and corporate finance.
- Valuation and Portfolio Management
- Fundamental Analysts
- Franchise Buyer
- Information Traders
- Market Timers
- Efficient Marketers
- Valuation in Acquisition Analysis
- Valuation in Corporate Finance
Project report given below discuss about all of the above points about Valuation Models and equity research in detail.