NISM Series XV : Research Analyst Certification Exam Notes
Page 23 Of 62
Go to:
Replacement Value refers to the market value of all the assets of a company at any point of time. If a new company were to set up with all the infrastructure/plants, which an already existing company has, then the cost which it would have to bear today is known as the 'Replacement Value' of the existing firm.
Intrinsic Value of an asset is the present value of expected free cash flows from the asset. Warren Buffett defines the intrinsic value as 'It is the discounted value of the cash that can be taken out of a business during its remaining life.'
In simple terms, the intrinsic value of an equity share is the discounted value of its future benefits to the investors
Market Capitalization (Market Cap) is the amount of money required to buy out an entire company at its current market price. It is computed as market price per share of the company multiplied by total number of outstanding shares.
Enterprise Value (EV) is the theoretical takeover price of a firm. Along with Equity, it considers the debt as well as cash reserves of the company in determining its value.
MODELEXAM® 
www.realsoftinfoplan.com