合并中的财务(英文版).ppt

The Valuation of Quoted & Unquoted Companies P/E Ratio Earnings Method of Valuation P/E relates earnings per share to Share Value P/E = Market Value per share Earnings per Share Market Value per share = P/E * EPS Market Value = Earnings * P/E The Valuation of Quoted & Unquoted Companies P/E Ratio Earnings Method of Valuation EPS can be historical of prospective (Exam) Higher the P/E the higher the Price High P/E may indicate: Expectation of EPS future growth Security of Earnings Status Quoted Company (P/E of Unquoted Co 50% of Quoted company) The Valuation of Quoted & Unquoted Companies P/E Ratio Earnings Method of Valuation Guidelines: Unquoted Co P/E is ultimately negotiation : Look at General economies and financial conditions Type of industry and its prospects Size of Co within the industry & overall market Marketability Diversity of Shareholdings Sustainability and reliability of Profits Asset Backing and Liquidity Nature of Assets Gearing Key Individual &/or Skill reliance The Valuation of Quoted & Unquoted Companies The Accounting Rate of Return Method Value = Estimated Future Profits Req. RoR on Cap Emp Adjust Profits for changes post acquisition in: Directors Remuneration Interest Charges (Debt Restructuring) Charge for notional Rent where existing properties will be sold Product &/or management rationalisation The Valuation of Quoted & Unquoted Companies The Accounting Rate of Return Method Used to determine the maximum Price as it represents desired return post acquisition The Valuation of Quoted & Unquoted Companies Net Assets Method Value of Shares in a particular class = The Net Tangible assets attributable to that class by the number of shares in that class Exclude intangibles unless they have a market value Asset values vary and this is the biggest difficulty with this method The Valuation of Quoted & Unquoted Companies Net Assets Method Professional Valuation Are all liabilities reflected in the Net Assets Are Curre