Asset based valuation, Finance Basics

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Asset Based Valuation 

This method acquires into account the entire business along with reference to its assets and then divides the resultant value via the number of shares in a matter to give the per share.  The principles are similar as those in the valuation of businesses computed already.

If a historical dividend however based on earning based valuation procedure a figure that is less than the asset value then there is a possibility such the buyer may be capable to develop the management of the asset being taken over.  During such a case, a buyer would be prepared to pay a price that though excessive in terms of income might be justified with the underlying assets value.


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