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Showing posts from March, 2022

Terminology in equity Markets

  Terminology in equity Markets Index Face Value (FV) Book Value  Market Value Replacement Value Intrinsic Value Market Capitalization (Market Cap) Enterprise Value Earnings- Historical, Trailing & Forward Earning Per Share (EPS) Dividend Per Share (DPS) Price to Earning Ratio (PE ratio) Price to Sales Ratio (P/S) Price to Book Value Ratio (P/BV) Differential Voting Rights (DVR) Face Value (FV) The nominal price of a share is known as its face value.  Equity capital = No’s of Share X FV For eg- In case a company has issued 1 lakh share with FV of Rs 10, then the equity capital of the company would be 10 lakh ( 100,000 X 10) The FV of a company’s share does not usually changes unless the company decides to split or consolidate it’s shares. In such case, the FV of company share would reduce - in case of split, or increase- in case of consolidation. FV is important for calculating the dividend payable on share. When dividends are mentioned as a percentage, that percenta...