Shareholder value, Financial Management


There are various measures used by market analysts and financial experts to derive the maximum Shareholder Value of a particular company but we would take the following broad measures for our understanding of the Company better.


i.             Earnings Per Share (EPS)

EPS = Profit after Tax / No. of Equity Shares


ii.            Book Value (BV)

BV = Net Worth / No. of Equity Shares


iii.           Market Capitalisation (MC)

MC = Market Price of a unit of Share x No. of Equity Shares


iv.           Price to Earnings per Share (P/E)

P/E = Market Capitalisation / Profit after Tax


v.            Price to Book Value per Share (P/BV)

P/BV = Market Capitalisation / Net Worth

Posted Date: 7/25/2012 9:21:53 AM | Location : United States

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