A Critique On Common Methods Of Valuation And Introducing Comprehensive Methods


Valuation is one of the main subjects in investment management which plays an important role in efficient capital allocation. Valuation has become an important subject since supreme leader addressed the 44th principal of constitutional law. Considering many problems which have arrised in valuation and stock pricing by Privatization Organization during resent years,it is essential to pay more attention in valuation of the different companies which are being privatized in the near future.
In this article we surveyed different valuation methods which was presented by Iranian Board of Ministers along with addressing the different valuation methods such as Discounted Cash Flow(DCF),Economic Value Added(EVA),Ajusted Present Value(APV) and Gordon Model. Finally we proposed DCF showing an example.