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How to calculate the estimated value of the company in the project part

How to calculate the estimated value of the company in the project part

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Answer #1

Valuation of a company is the process of determining the true worth of a company.

We can determine the value of the company by the following methods

- NAV i.e. Net Asset Value Method which is total assets - total external liability

- Market Value Added which is current value of the securities of the company - value of shareholder's fund

- Value of company using future maintainable profits

- Value of the firm by using discounted cash flow model

- Value of the company using chop shop approach

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