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The Four Stages of Evolution in Equity Share Valuation: 4.Valuation of Loss-making entities with Potential -The Concept, Trigger & Limitations

A key ingredient that ensured the growing success of companies is the evolution in valuation of shares that permitted shareholders to sell and investors to buy shares without diluting any of the economic advantages of ownership. The evolution of share valuation is episodic, marked by stock market bubbles and often a major scandal that [...]

By | 2018-12-06T12:04:52+00:00 December 5th, 2018|First of First|0 Comments

The Four Stages of Evolution in Equity Share Valuation: 3.Price Earnings Multiple Method- The Concept, Trigger and Limitations

A key ingredient that ensured the growing success of companies is the evolution in valuation of shares that permitted shareholders to sell and investors to buy shares without diluting any of the economic advantages of ownership. The evolution of share valuation is episodic, marked by stock market bubbles and often a major scandal that [...]

By | 2018-12-06T12:03:46+00:00 November 5th, 2018|First of First|0 Comments

The Four Stages of Evolution in Equity Share Valuation: 2.Book Value Method- The Concept, Trigger and Limitations

Large businesses and business intending to be large are organized as companies for they provide the triple advantage of ‘Existence at will’ for they survive till their shareholders decide to dissolve them Limited liability enabling many unrelated investors to collaborate, and Transferable shares, providing liquidity to their shareholders without impairing the liquidity of the [...]

By | 2018-12-06T12:18:36+00:00 October 5th, 2018|First of First|0 Comments

The Four Stages of Evolution in Equity Share Valuation: 1.Dividend Capitalization Method-The Concept, Trigger and Limitations

Large businesses and business intending to be large are organized as companies for they provide the triple advantage of ‘Existence at will’ for they survive till their shareholders decide to dissolve them Limited liability enabling many unrelated investors to collaborate, and Transferable shares, providing liquidity to their shareholders without impairing the liquidity of the [...]

By | 2018-12-06T12:33:35+00:00 September 5th, 2018|First of First|0 Comments

Birth of EPS (Earnings Per Share): Brevity is the Essence of Effective Communication

‘A cow for her milk, A hen for her eggs, A stock, by heck, For her dividends.’ As the popular poem of 1930s captured, dividend is what attracted the investors to stocks. But with time as companies retained a bigger and larger share of profits for their internal growth, with some companies even skipping [...]

By | 2018-12-06T16:19:00+00:00 August 5th, 2018|First of First|0 Comments

The Need for Cash Flow Statements: Demystifying the Profit & Loss Account

(this article is the third and final part of a trilogy that traces the origin of the three elements of financial statements- the balance sheet, the profit and loss account and the cash flow statement) Financial Statements consisting of the three- Balance Sheet, Profit and Loss Account and the Cash Flow Statements, form the [...]

By | 2018-12-06T16:53:24+00:00 July 5th, 2018|First of First|0 Comments

The Birth of Profit & Loss Account & A New Method to Compute Profits

(This article is the second of a trilogy that traces the origin of the three elements of financial statements, the balance sheet, the profit and loss account and the cash flow statement) Financial Statements consisting of the three- Balance Sheet, Profit and Loss Account and the Cash Flow Statements, form the core segment of [...]

By | 2018-12-06T17:22:56+00:00 June 5th, 2018|First of First|0 Comments
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