Valuation is an art and not a science. It requires the combination of knowledge, experience and professional judgement in arriving at a fair valuation. While experience and judgement can only be cultivated through time, knowledge is acquired through formal training courses, reading on valuation and vitally of course being on the job. Practice is the best of all instructors.
The debate on valuation concepts and methodology is ages old and will continue for ages. Nevertheless certain influencing views have attempted to crystallize what is best practice. In India, such views originated from the Office of the Controller of Capital Issues (since abolished), The Institute of Chartered Accountants of India and the Ministry of Finance and in recent times from the Securities and Exchange Board of India(SEBI).They attempt to bring down the subjective element in the valuation by prescribing the methodology, formulae and the rates to be followed in general and specific situations.
After going through this unit you should be able to
- Apply Time Value of Money concepts of Compounding and Discounting
- Explain and apply the basis of Valuation of Equity and the methodology
- Gauge the relevance of contemporary valuation techniques
- Compute the value under assets and earnings basis after calculating where required the weighted average cost of Capital
- Understand why market price may have no relation to fundamentals
This Course will benefit all those who are interested in initiating, enhancing or confirming their valuation knowledge in theory and in practice in the field of fundamental equity and company research. It will particularly add great value to Fundamental Analysts, Brokers, Students pursuing Management Studies and even Valuation Practitioners.
- Introduction
- Importance : The Indian Realization
- Basis, Methodology & Application
- Contemporary Concepts & their Application
- Special Considerations
- Qualities required in a Fund Manager
- Earlier & Current Guidelines
- Onus on the Investor
