INV3701 Equity Asset Valuation (INV3701)

INV3701- Equity Asset Valuation STUDY NOTES. EQUITY - Equity is what the shareholders own from an entity e.g. ordinary shares, preference shares & Retained earnings. JUSTIFY VALUATION Valuation is the estimation of an asset’s value based on: 1. Variables perceived to be closely related to future investment returns such as * interest rates * Price appreciation * Management 2. Comparison with closely similar assets * shares of similar companies * industry (benchmarking) DEFINE VALUE In ...