Valuation of shares is the process of knowing the value of a company’s shares. Share valuation is done based on quantitative techniques and share value will vary depending on the market demand and supply. The share price of the listed companies which are traded publicly can be known easily. When valuing a company as a going concern, there are three main valuation methods used by industry practitioners: (1) DCF analysis, (2) comparable company analysis, and (3) precedent transactions. Market value of equity is the total dollar value of a company’s equity and is also known as market capitalization. This measure of a company’s value is calculated by multiplying the current stock price by the total number of outstanding shares. Share valuation is defined as the technique for calculating the estimated value of companies and their stock, with a specific end goal to foresee moves in the market and resulting share costs.

Saranya R Kurup

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