Investment DictionaryTerminal VALue Terminal value is a value of the business (or other asset) used in discounted cash flow (DCF) method that is added after the discontinuing of the cash flow forecasting. DCF valuation is based on the sum http://www.investingforbeginners.eu/terminal_value Book VALue of Share A book value of share is calculated dividing all company’s book value (less preferred equity) by its common share number. For example, if company’s book value is 1,000,000 USD and issued share nu http://www.investingforbeginners.eu/book_value_of_share Stock Book VALue Stock book value is a book value of one share. It is calculated dividing shareholders equity by share number and gives some very approximate investing guidance about the value of the stock. It is popular to look http://www.investingforbeginners.eu/stock_book_value Business VALuation The goal of business valuation is to determine the correct market value of a business. Usually business valuation is performed by professional valuators / assessors who have required qualifications for the job.&n http://www.investingforbeginners.eu/business_valuation Enterprise VALue Enterprise value (EV) is a financial measure that is used to reflect the magnitude of the business. If market capitalization shows only the value of shareholders equity, enterprise value includes both: equity val http://www.investingforbeginners.eu/enterprise_value VALue Stocks Value stocks are opposite to growth stocks and attract investors not by growth perspectives but by stable cash and dividend flow. Market ratios (P/E, P/B and other) of value stocks are low and together with high http://www.investingforbeginners.eu/value_stocks VALue Penny Stocks Value penny stocks are stocks that have characteristics of both: value stock and penny stock. Investment in value penny stocks isn’t very popular, because stock investors who seek for safety invest in norma http://www.investingforbeginners.eu/value_penny_stocks Net Present VALue (NPV) Net present value (NPV) is a value calculated by discounting all future net cash flows (net cash flow is calculated taking all the forecasted future income and subtracting from them forecasted expenses in every p http://www.investingforbeginners.eu/net_present_value_npv VALuation Multiples Valuation multiples are stock ratios that include in the calculation share price and show whether stock is cheap or expensive compared to similar stocks. Valuation multiples (or just multiples) ar http://www.investingforbeginners.eu/valuation_multiples Market VALue The meaning of market value depends on the context for which the term is applied. Generally, market value is a price at which the buyer would agree to buy and seller would agree to sell the object without any ext http://www.investingforbeginners.eu/market_value Par VALue Par value also is called face value or nominal value, and is a nominal amount of money that shows how much of money is related to the security nominally. Par value is used most commonly for two types of securitie http://www.investingforbeginners.eu/par_value VALuation Methods There are three main valuation methods used for business valuation or stock valuation: Relative valuation is very easy to use and is the fastest method. That is why this method is so popular among fina http://www.investingforbeginners.eu/valuation_methods VALuation Consultants Valuation consultants are professionals that know everything about the value of an asset or business. The real market value consists of many parts and all of them may have critical importance to the value. Only e http://www.investingforbeginners.eu/valuation_consultants Asset VALuation The specifics of asset valuation depend on particular asset class. However, the main valuation methods are the same for all assets. The mostly used methods are relative valuation and DCF valuation. Relative valua http://www.investingforbeginners.eu/asset_valuation Company VALuation Company valuation is the same as business valuation. The only difference between company valuation and business valuation may occur if value of company’s stocks has to be determined instead of the whole bus http://www.investingforbeginners.eu/company_valuation Business VALuation Methods Business valuation methods are not much different from general valuation methods. Maybe business valuation is more difficult and complicated than real estate valuation but the methods are the same only the differ http://www.investingforbeginners.eu/business_valuation_methods Small Business VALuation Small business valuation is not much different from standard business valuation. However, small business valuation is faster to perform because there is less financial and business data to analyze and less time c http://www.investingforbeginners.eu/small_business_valuation UnderVALued Stocks Undervalued stocks are called those stocks that are believed to have higher target price than their stock price on the exchange. The higher is the difference the more stock is undervalued. If stock price in the m http://www.investingforbeginners.eu/undervalued_stocks OverVALued Stocks Overvalued stocks are those stocks that cost in stock market more than their target price is. Target price of the stock is calculated market value of a stock using stock valuation methods. The most popular method http://www.investingforbeginners.eu/overvalued_stocks Target VALue Target value is a calculated market value of the stock that should show the expected price of the stock. If target value is higher that stock price on the stock exchange, that should mean the analyst that made th http://www.investingforbeginners.eu/target_value Book VALue There are two main types of values that are used in finance: Book value Market value Book value is a value that is recorded in the balance sheet of a company. Every asset of the company must http://www.investingforbeginners.eu/book_value | Recommended Topics Investment psychology gains momentum in contemporary business world Balance Sheet Most Popular Articles Investing in Gold (I) Investing in Gold (II) Investing in Uncertain Period
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