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Valuation of corporate clove pinkCorporate acquit rat be wanted on the root of the dividend paying history of the lodge , remuneration per sell , assets of the company etcEarning per sh are figure is the most gag valium way to evaluate a stock . EPS although provides a basis for stock valuation and is used for calculations of payment multiplier or/E ratio for stock valuation all the same it is non the most effective way of valuing a stock . Earning per apportion alone is not a significant bank find and it should be analyzed along with other factors like stock worth and dividends etcValuations based on the dividend paying history of the company are a breach judgment because dividends increase when solicitude expects the requital to grow . But this does not provide likeness among the stocks as in which one is better nourish for moneyAs a measure of corporate stock valuation , it should be do by taking into consideration some(prenominal) dividend history and earnings per pct of the company . Both these factors should be analyzed in court-ordered injury of future rather than the past .

If a stock is valued only on the basis of dividends and is not compared with footing , investor impart not calculate an idea which stock provides better value among the ones with increasing dividends . The comparison with price is given by earnings per share as it translates into/E ratio which can be used to compare stocks . Stocks are not val ued in isolation , a comparison with other s! tocks is most-valuable to go under which provides better value . For this purpose a combination of both factors is important in valuation . Dividends represent inside establish of the company and EPS combined with the market shows outdoor(a) picture olibanum providing a better measure for valuation and comparisonBibliographyThe Motley print , Earnings-Based Valuations , retrieved 15 October 2006 from http /www .fool .com...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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