nice questi
sas say on stock valuation that
A valuation stock option is an agreement made to offer the option to purchase the stock at a later date. The price of the option is based on the reference price and the value of the asset in which the stock is being purchased.
A 409A valuation is a valuation of a company's common stock for tax purposes, while a post-money valuation is the value of a company after receiving external funding.
In Tally 7.2, the FIFO (First In, First Out) stock valuation method assumes that the oldest stock items are sold first. To enable FIFO valuation, you need to set up inventory items and ensure that the stock valuation method is specified as FIFO in the inventory configuration. When you record sales transactions, Tally will automatically deduct the cost of the oldest stock first, reflecting accurate inventory and cost of goods sold for reporting purposes. This helps in providing a clearer picture of stock levels and financial performance.
The present stock value evaluation is one of the methods of share valuation which does not use CAPM.
The constant growth valuation model assumes that a stock's dividend is going to grow at a constant rate. Stocks that can be used for this model are established companies that tend to model growth parallel to the economy.
Stock valuation models are tools used to estimate the intrinsic value of a stock based on various factors such as earnings, growth projections, dividends, and risk. Common valuation models include discounted cash flow (DCF), price-to-earnings (P/E) ratio, and price-to-book (P/B) ratio. These models help investors make more informed decisions about whether a stock is overvalued, undervalued, or fairly priced.
they are twoo: FIFO and LIFO
A. A. Fitzgerald has written: 'Problems of accounting valuation of stock in trade'
Finished goods valuation is done on the basis of cost price unless cost price not available then sale price can also be use.
from ssap 9 lower of cost or net realisable value
Annual stock taking-done once a year and it si done for the purpose of preparing financial accounts. Spot cheecking Perpetual stock taking