Ratio Analysis
Valuations
Charting Technique
- Also termed as MARKET BASED VALUATION METHODS
- It is an expression of market value
- (i)Enterprise Value
- (ii)Equity
- It denotes the value of entire enterprise
- It denotes the value of Share holders equity on Assets,earnings..
- Due to accounting treatment with respect to Policies i.e depreciation, interest rate calculation..
- Price To Earnings Multiples
- Price To Book Value Multiples
- Price To Sales Multiples
- EV/EBITDA Multiples
- EV/Sales Multiples
- PEG Ratio
Valuation with Multiples
What is Multiple
We can say there are two types of Multiples:
Enterprise Multiple:
Equity Multiple:
Variation between Multiples:
Company EPS x Average Price to earning ratio of the industry
Multipels with Enterprise value:
