Explain assets banking method for valuation of shares with example
Answers
Answer:
Asset valuation is the process of determining the fair market or present value of assets, using book values, absolute valuation models like discounted cash flow analysis, option pricing models or comparables. Such assets include investments in marketable securities such as stocks, bonds and options; tangible assets like buildings and equipment; or intangible assets such as brands, patents and trademarks.
METHODS:-
Comparable company analysis. ...
Precedent transactions analysis. ...
Discounted Cash Flow (DCF)
EXAMPLE:-
lfigures are for the period ending Dec. 31, 2018.
Total assets: $232.8 billion
Total intangible assets: $2.2 billion
Total liabilities: $55.2 billion
Total net asset value: $175.4 billion (total assets $232.8 billion – total intangible assets $2.2 billion – total liabilities $55.2 billion