Submit a written paper which is 2pages in length, exclusive of the reference page. Papers should be double-spaced in Times New Roman font which is no greater than 12 points in size. The paper should...

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Submit a written paper which is 2pages in length, exclusive of the reference page. Papers should be double-spaced in Times New Roman font which is no greater than 12 points in size. The paper should cite at least one source independent of the textbook.


In this paper, please discuss the major methods of company valuation that we have studied. In doing so, explain each method and compare their advantages and disadvantages with the other methods you choose to discuss.Support your discussion with references.


Papers will be assessed on the following criteria:



  • Provide a narrative explaining the market capitalization method.

  • Provide a narrative explaining the book value method.

  • Provide a narrative explaining expected future earnings method.

  • Provide a narrative on other methods.

  • Provide a narrative that compares market capitalization, book value, and future earnings methods (and other methods mentioned) with each other.

Answered Same DayDec 15, 2019

Answer To: Submit a written paper which is 2pages in length, exclusive of the reference page. Papers should be...

David answered on Dec 24 2019
127 Votes
Company Valuation Approaches
Company valuation refers to the process, under which a company’s monetary value is determine
d. There are multiple approaches of this valuation, major of which are Market Capitalization method, Book value method and Expected Futures Earnings method. Each of these methods carries their own attributes that make them considerable. The method to be used entirely depends upon the kind of company being valued. Sometimes, analysts use more than one technique to determine the true value of a firm. The methods are described in detail below:
Market Capitalization Method: As the term itself suggests, under this method, the value of a firm is derived from the market capitalization also known as “Market Cap” of its shares, which means that the value of a company is equal to the market value of its total outstanding shares. The market cap is derived by multiplying total number of shares of a firm with market price per share. This method is the most used method of company valuation as it provides a true market value of any firm. However, this method can only be used for companies that are publically listed and its shares are traded on capital market exchange.
Book Value Method: Book value...
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