Methods of valuation

Methods of valuation

In practice, analysts make use of various models to valuate assets, which include both simple to the most sophisticated models that produce different assumptions on pricing, yet hold common characteristics. These models are classified in broader terms that make it further easier to understand how individual models can be fit into the big picture, how they produce different outcomes and how they have critical errors in logic. Thus, the methods of valuation of shares are classified into two perspectives: historical and modern.

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