Tag: Valuations

  • What Is The Difference Between Preferential Issue And Rights Issue

    What Is The Difference Between Preferential Issue And Rights Issue

    Introduction Preferential issue and rights issue are some of the ways equities are introduced for sale in the primary market. From the primary markets, the investors can decide whether they want to sell off in the stock exchange or hold for further capital appreciation. What is preferential issue Under Section 81 of the Companies Act, […]

  • How To Value Stocks Using Sum Of The Parts (SOTP) Valuation Model

    How To Value Stocks Using Sum Of The Parts (SOTP) Valuation Model

    Introduction Sum of the parts (SOTP) is a type of valuation model for valuing the overall valuations of the company by breaking the business model into several small entities or smaller business models. These collections of business are valued independently and then clubbed to form a singular valuation model for the stock. Mathematical representation SOTP […]