Open AccessPredicting share value of private sectors
Author(s) -
R Kasinlingam
Publication year - 2010
Publication title -
ushus journal of business management
Language(s) - English
Resource type - Journals
ISSN - 0975-3311
DOI - 10.12725/ujbm.16.7
Subject(s) - dividend , valuation (finance) , volatility (finance) , equity (law) , financial economics , share price , economics , business , monetary economics , value (mathematics) , econometrics , finance , statistics , stock exchange , mathematics , law , political science
Investment in equity produces attractive returns in the long run irrespective of high volatility in the short term. This is true not only in a developed country but also for a developing country. But the problem is to decide at what rate to buy and what rate to sell. This article has made an attempt to predict the share value of three private sector bank shares by using equity valuation models. The result indicates that at any point of time if the actual value of shares is less than the calculated value (P0) then such shares can be purchased. This is true till 2010. The data on expected future dividend is collected from CRISIL report and company reports.