Company Valuation Model and Application On Royal Bank of Scotland Plc Essay

Company Valuation Model and Application On Royal Bank of Scotland Plc - Essay Example This dissertation will document comprehensively the current generally accepted concepts and methodologies of company valuation techniques. In addition, it will be my endeavor to propose an integrated model in which the investors can apply data and information and evaluate the company value with a reasonable level of accuracy.This dissertation will document comprehensively the current generally accepted concepts and methodologies of company valuation techniques. In addition, it will be my endeavor to propose an integrated model in which the investors can apply 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 have been adopted recently to predict the net worth of companies. The current financial valuation techniques of a company primarily comprise of four methods; †¢ Asset based valuation (that includes tangible and non-tangible assets),  Ã¢â‚¬ ¢ Income based valuation,  Ã¢â‚¬ ¢ Market-based valuation, and  Ã¢â‚¬ ¢ Cash flow based valuation.  All four methods result in different ways of thinking and often in different valuations. The investors normally do not understand which method is more suitable for them to use for making the most informed investment decisions and hence trust the methods that are generally adopted and presented by the rating agencies and performance evaluation agencies operating in the markets.