FMF9

Syllabus F2. Models for the valuation of shares 2 / 3

a) Discuss and apply asset-based valuation models, including:
i) net book value (statement of financial position) basis
ii) net realisable value basis
iii) net replacement cost basis

b) Discuss and apply income-based valuation models, including:
i) price/earnings ratio method
ii) earnings yield method
Models for the valuation of shares