Chapter 12. Corporate valuation

Introduction • Share values

 

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.

Introduction

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 (PE)

  • market to book ratio.

When ...

Get Key Management Ratios: The Clearest Guide to the Critical Numbers That Drive Your Business, Fourth Edition now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.

Start your free trial