Shareholder value, Financial Management

Assignment Help:

SHAREHOLDER VALUE

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


Related Discussions:- Shareholder value

Collection of amounts due - account receivable management, Preferably all c...

Preferably all customers will settle within the agreed terms of trade. If this doesn't happen a company needs to have in place agreed procedures for dealing with overdue accounts.

Standard deviation, Standard Deviation An investment must be evaluated ...

Standard Deviation An investment must be evaluated on two dimensions - rate of return and risk. An investor cannot enjoy a high return without any exposure to risk.  The higher

What are the limitations of ratio analysis, What are the Limitations of rat...

What are the Limitations of ratio analysis A ratio on its own is meaningless. Accounting ratios should always be interpreted in relation to other information, for illustration:

Expected return of your portfolio, You own three stocks: 1000 shares of App...

You own three stocks: 1000 shares of Apple Computer, 10,000 shares of Cisco Systems, and 5000 shares of Goldman Sachs Group. The current share prices and expected returns of Apple,

Role of interest groups in public policy making, Question 1: Explain cl...

Question 1: Explain clearly why "Public Policy Making constitutes a major part of the work of the Government. Question 2: Consider the role of interest groups in public

Concepts of working capital, CONCEPTS OF WORKING CAPITAL There are two ...

CONCEPTS OF WORKING CAPITAL There are two concepts of Working Capital - Net working capital and Gross Working capital. 1. Gross Working Capital Gross Working capital re

Determine the factors of auditors, Determine the factors of auditors Wh...

Determine the factors of auditors When anticipating to apply analytical review as a substantive procedure, auditors determine a number of factors like: Factor

Compounding or future value concept, Compounding or Future Value Concept: -...

Compounding or Future Value Concept: - Under this process of compounding the future worth of all cash inflows at the end of the time horizon at a particular rate of interest are fo

The us treasuries and other government securities, The United S...

The United States of America issues US Treasuries, which are negotiable government debt obligations. They are popular because they are backed by the full

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd