Archive | Valuation

Valuation of Securities (With Formula)

After reading this article you will learn about the Valuation of Securities:- 1. Debenture Valuation 2. Share Valuation 3. Equity Share Valuation. Debenture Valuation: A bond is an instrument of debt issued by a business house or a government unit. The bonds may be issued at par, premium or discount. The par value is the amount stated on the face [...]

By |2016-06-22T16:17:24+05:30June 22, 2016|Valuation|Comments Off on Valuation of Securities (With Formula)
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Rate of Return on Equity Share (With Formula)

The value of an equity share is a function of cash inflows expected by the investors and the risk associated with the cash inflows. It is calculated by discounting the future stream of dividends at the required rate of return, called the capitalisation rate. The required rate of return depends upon the element of risk associated with investment in shares. [...]

By |2016-06-22T16:17:24+05:30June 22, 2016|Valuation|Comments Off on Rate of Return on Equity Share (With Formula)
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