What is the meaning of Stock valuation, and how ?

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What is the meaning of Stock valuation, and how ?..

Answer / h.r. sreepada bhagi

Calculation of value of Inventory at any given date by
applying unit rate to each of the Inventory item is called
Stock Valuation. Inventory should be valued at Cost or Net
Realisable Value (Market Value) whichever is lower.
Inventory Valuation is guided by the Accounting Standard
applicable to the country concerned. In India AS-2 Valuation
of Inventories, issued by ICAI guides how to value Stock.

Inventory valuation is needed for preparation of Financial
Statements, For filing Stock Reports to Banks/Financial
Institutions, For calculation of Inventory Turnover Ratio, etc.

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What is the meaning of Stock valuation, and how ?..

Answer / mohammed alam

The process of calculating the fair market value of a stock
by using a predetermined formulas that factors in various
economic indicators. Stock valuation can be calculated
using a number of different methods. The most common
methods used are the discounted cash flow method, the P/E
method, and the Gordon model. Whichever method is chosen
must be done accurately so that the price of stock can be
valued properly.

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