A New Company Valuation Model and its Application On the Royal Bank of Essay

A New Company Valuation Model and its Application On the Royal rely of Scotland Plc - Essay ExampleBank of Scotland consortium, where the transaction price was approximately 72billion and in the end, this investment was found to be worth nearly zero. Investors cook lost billions of pounds and dollars amidst hypes of valuations in practically everything where one may look for an opportunity to invest safely and expect returns. One of the reasons for such losses is that investors are not sufficiently nearly informed about their investment decisions that they are making or the risks that they are taking on. Buyers tend to depend upon market information published by mingled organisations or rating agencies. The irony is, these agencies themselves have been inflating the values amidst their own problems. Accordingly, the valuation of companies should no longer be treated as sacrosanct. The specialised lengthy and labyrinthine process that companies carry out to make decisions pertain ing to mergers and acquisitions can no longer be taken for what it is. Every investor buying shares in a listed company should have reasonable visibility into the value of the company so that he/she can judge the risks and develop balanced portfolios.This dissertation will document comprehensively the flow generally accepted concepts and methodologies of company valuation techniques. In addition it will be my endeavour to propose an integrated model in which the investors can bind data and information and evaluate the company value with a reasonable level of accuracy.In this dissertation an effort has been made to address the problems related to the methodology of valuations that has been adopted recently to predict the net worth of companies. The current financial valuation techniques of a company primarily comprise of quartette methods (Jacob, 2004 pp1-4 and Fernandes, 2007 pp2-19)All four methods result in different ways of thinking and often in different valuations. The inves tors normally do not understand which method is more commensurate for them to use for making the most informed