Valuation of shares is difficult and thankless. It is true that only those people who have devoted themselves to this “all of themselves” can do this - that is, they are engaged in the valuation of shares professionally. And yet, intending to buy a block of shares of a particular company, you can very roughly estimate the value of the shares for yourself even before buying.
Instructions
Step 1
In principle, the value of the shares must be published in the press. Moreover, it is published in two versions: the ask price and the offer price. So you can find the price of the shares you are interested in simply in a specialized press or on the Internet.
Step 2
Another way - more expensive, but much more reliable - is to invite an independent appraiser who will evaluate the business and calculate the market price of the share.
Step 3
The third way is to try to determine the real value of the stock yourself. To do this, use a comparative approach. It is the most accessible of all the approaches used in the valuation of stocks. Apply the peer-to-peer method, transaction method, or industry ratios method for valuation.
Step 4
Before starting an assessment, collect the most complete data on the company you are interested in, so to determine the share price, you will have to conduct a complete financial analysis of the business. Very often, most of the information is classified. In such a situation, use the analogy method: after obtaining information on any other, similar company, analyze its financial condition, and then, with the necessary amendments, extrapolate the results to the stocks you are going to buy. If you used the comparative calculation method, and you are going to buy a controlling stake, then make an adjustment for this: add the so-called control premium to the resulting value, which is calculated based on the discount for the controlling nature of the stake.
Step 5
Keep in mind that both Russian stock exchanges are actively trading a small number of shares of an extremely small number of large companies - the stock market is still too undeveloped in our country. Really interesting deals with stakes in small businesses are rare. Accordingly, the transaction value and the estimated share price may not coincide.
Step 6
The value of a share can be calculated using other methods. They are certainly more accurate, but without a lot of experience and access to professional sources of information, you are unlikely to be able to use them.
