NISM Series XV : Research Analyst Certification Exam Notes

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  • It is implicitly assumed that the debt of the company is a liability that also has to be taken over and accounted for in the price by the acquirer, while the cash reserves are available to the buyer and therefore deducted from the total value.
  • Enterprise value = Market value of equity (Market capitalization) + Market value of debt - cash and cash equivalents
  • Earnings Per Share ( EPS ) = Net Profit/ Number of shares outstanding
  • Dividend Per Share (DPS) - 40% dividend declared by company will translate into a dividend of Rs.4 per share with a face value of Rs 10 (10*40% =4). This is known as Dividend Per Share (DPS)
  • Price to Earnings Ratio (PE Ratio) = Market price per share/Earnings per share

NISM RESEARCH ANALYST

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