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  • Equity Valuation: By:-Ramu Kamal Chandini

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    Surajit Lima
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    The document discusses various equity valuation methods including price to book value ratio, price to sales ratio, and the sum of the parts method. It also covers equity portfolio management strategies such as passive buy and hold versus active market timing and security selection. Additionally, it addresses forecasting aggregate stock market returns based on investment returns and speculative returns.

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    Equity Valuation

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    The document discusses various equity valuation methods including price to book value ratio, price to sales ratio, and the sum of the parts method. It also covers equity portfolio management strategies such as passive buy and hold versus active market timing and security selection. Additionally, it addresses forecasting aggregate stock market returns based on investment returns and speculative returns.

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    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
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    19 views6 pages

    Equity Valuation: By:-Ramu Kamal Chandini

    Uploaded by

    Surajit Lima
    The document discusses various equity valuation methods including price to book value ratio, price to sales ratio, and the sum of the parts method. It also covers equity portfolio management strategies such as passive buy and hold versus active market timing and security selection. Additionally, it addresses forecasting aggregate stock market returns based on investment returns and speculative returns.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
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    of 6

    EQUITY VALUATION

    BY:- RAMU
    KAMAL
    CHANDINI
    PRICE TO BOOK VALUE RATIO

    It is the net worth of the company divided by the


    number of equity shares issued.
    market price per share at time t
    PBV ratio=
    book value per share at time t

    PBV ratio= Pο = ROE (1+g) (1-b)


    BVo r- g
    PRICE TO SALES RATIO
     Is calculated by dividing a company’s current stock
    price by its revenue per share for the most recent
    twelve months .
    SUM OF THE PARTS METHOD

    Determine Assess the Add the per share


    values for the core
    the value per Find the par value per business, for
    share share for each share for each listed subsidiaries,
    attributable to of the listed of the and for unlisted
    subsidiaries, to et
    the core subsidiaries. unlisted the total value per
    business. subsidiaries. share.
    EQUITY PORTFOLIO MANAGEMENT

    PASSIVE ●
    Buy and hold
    STRATEGY ●
    Indexing strategy

    ●
    Market timing
    ACTIVE ●
    Sector rotation
    ●
    Security selection
    STRATEGY ●
    Use of a specialized investment concept
    FORCASTING THE AGGREGATE STOCK MARKET
    RETURNS
     DETERMINED BY THE INTERACTION OF TWO
    FACTORS, INVESTMENT RETURNS AND
    SPECULATIVE RETURNS.

     SMR

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