12
Corporate valuation
Introduction
He used to watch the market most precisely, and got in first, and so he did quite nicely.
GEOFFREY CHAUCER (1380)
Introduction
The value of public companies is determined by the stockmarket. The value of companies not publicly quoted will be greatly influenced by the same market. In this chapter, therefore, we will look at the main stock-market-related ratios.
These are:
- market capitalization
- share values, nominal, book, market
- earnings per share (EPS)
- dividends per share (DPS)
- dividend cover and the pay-out ratio
- earnings yield
- dividend yield
- price to earnings ratio (P/E)
- market to book ...
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