Methods for valuation of shares
Methods for valuation of shares

Summary/Abstract: The value of the securities, in that context the shares, presents one of the crucial issue in the financial and investment management. Namely, to make the certain decision in the financial management for the current and future financial and investment performance of the company, the value of the share presents important input variable.Determination of the value of the share presents complex issue that is determining by the number variables and factors. In order to, in the literature and practice are realized more types of analysis, methods and criteria to determine the value of the share. The focus in the article is the methods for the valuation. Generally, there are two groups of methods, methods that are based on the discounted cash flow and methods that are based on the relative variables. Because of the imperfection of the methods of the valuation, it is necessary to use the combination of the various methods to get the more relevant results in the analysis and in accordance with this to make the relevant decision.

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