Valuation of Equity Shares: 3 Methods | Securities | Financial Management

Following are the most common methods used for equity valuation:   Method # 1. Based on Balance Sheet: i. Book Value: It is the net worth of a company divided by number of outstanding shares. Net worth is equal to paid-up equity capital plus reserves and surplus minus losses. ii. Liquidation Value: Liquidation value is different than a book valuation. [...]