How to determine the market value of a company and what
factors are relevant to determine if the company is a
viable investment in the long term?



How to determine the market value of a company and what factors are relevant to determine if the c..

Answer / shrikant sapaliga

For companies listed on a stock exchange the most
conventional way would be to multiply its share price by
the number of shares in issue, this is the current market
values of the company known as its market capitalization.
For investing in a company for a long term perspective, one
should look at the P/E ratio (MPS/EPS). The PE ratio of the
company should be less than the PE ratio of that industry.
(Lower the better). Also one should look for EPS. (Higher
the better).

Is This Answer Correct ?    4 Yes 0 No

Post New Answer

More Accounting General Interview Questions

what is the format of salary slip when basic , D.A.H.R.A. ,conveyance allowence , concluded and in deduction part P.F. E.S.I. & P.Tax.

0 Answers   Genpact, HDFC,


How to face the interview of account in mnc & other plz me adivce

2 Answers   Accounting, FactSet Systems, HCL,


What Does Random Walk Theory Mean?

1 Answers   JPMorgan Chase,


sale cycle

0 Answers  


what is the Cash purchase limit.

2 Answers   Max India,






who is the customer and vendor?

2 Answers  


What is the meaning of Stock valuation, and how ?

2 Answers  


Do you know balancing in accounting?

0 Answers  


All Expences Debit?

2 Answers  


Hi I want to know what is Capital Work In Progress , how to calculate the Capital Work In progress.

1 Answers  


Where will loss appear in Balance Sheet?

4 Answers   Chartered Accountant,


Explain the Depreciation, objectives for calculating the depreciation and various method for calculating depreciation

1 Answers  


Categories