wazua Thu, Jan 30, 2025
Welcome Guest Search | Active Topics | Log In | Register

How do you value a company with preference shares?
selah
#1 Posted : Thursday, December 20, 2012 10:06:38 AM
Rank: Elder


Joined: 10/13/2009
Posts: 1,950
Location: in kenya
I have checked most analysis of companies they usually base their EPS,P/E and divided yield using the ordinary shares...how do you do that when a company has preference shares.

Most analyst don't factor in the preference shares...and I have been wondering when a company announces end year or any financial results how do you value the company keeping in mind the preference shares.

'......to the acknowledgment of the mystery of God, and of the Father, and of Christ; 3 In whom are hid all the treasures of wisdom and knowledge.' Colossians 2:2-3
Obi 1 Kanobi
#2 Posted : Thursday, December 20, 2012 5:10:39 PM
Rank: Elder


Joined: 7/23/2008
Posts: 3,017
It depends on the classification of preference shares. They can either be part equity or liability depending on their terms.

This will affect the valuation of the company shares.
"The purpose of bureaucracy is to compensate for incompetence and lack of discipline." James Collins
Users browsing this topic
Guest
Forum Jump  
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.

Copyright © 2025 Wazua.co.ke. All Rights Reserved.