Is it correct to use valuation of shares of certain company

Is this correct to use in the valuation of the shares of a certain company the “the real net assets value” which, as per to the Institute of Accounting and Auditing (ICAC), shows the “book value of shareholder’s equity, corrected through increases or decreasing in value that could be demonstrated, in the case of the obligations, rights and goods of the company at the reference date?”

E

Expert

Verified

The process denominated “value of the real net assets” which has no theoretical base (no good sense): this is a mixture of the market value and book value of assets. Nor is this a liquidation value.

   Related Questions in Corporate Finance

  • Q : What is Stock Market Stock Market : To

    Stock Market: To trade company shares (or stock) and derivatives, a stock market or equity market is public entity where these shares and derivatives are sold at agreed price. These are to be listed on a stock exchange in order to trade publicly.

  • Q : Problem on optimal capital structure

    XYZ Company has debt/assets ratio 50%, that is too high and it must be at 45% to be optimal. This debt reduction must also reduce the bankruptcy costs by $30 million. At present, XYZ has 5 million shares of common stock selling at $50 each. The tax rate of XYZ is 30%.

  • Q : Does the book value of the debt

    Does the book value of the debt all the time coincide with its market value?

  • Q : Is net income of a year is doubtful for

    Is the net income of a year money the company made that given year or is this a number whose importance is quite doubtful?

  • Q : Describe nominal gross domestic product

    Nominal gross domestic product: If GDP of a particular year is estimated on the base of price of similar year, it is termed as nominal GDP.

  • Q : What are the different types of

    What are the different types of mathematics found in quantitative finance?

  • Q : Explain the Monte Carlo evaluation of

    Explain the Monte Carlo evaluation of integrals.

  • Q : Earnings management What do you mean by

    What do you mean by Earnings management and what are their actions and activities?

  • Q : Explain Value Chain Value Chain : The

    Value Chain: The value chain is a theory from business management that was first described and popularized Michel Porter in his 1985 best seller, Competitive Advantage: Creating and Sustaining Superior Performance.

  • Q : What is real gross domestic product

    Real gross domestic product: If GDP of a particular year is estimated or evaluated on the basis of the base year prices it is termed as real gross domestic product.

©TutorsGlobe All rights reserved 2022-2023.