Tools for Analysing Shares
2017-08-05 05:33
导读：英语论文论文，Tools for Analysing Shares怎么写，格式要求，写法技巧，科教论文网展示的这篇文章是很好的参考：?? oí?3 By Hoe Soon??There are many methods to assess the fair value of a share. Before the val
?? oí?3 By Hoe Soon??There are many methods to assess the fair value of a share. Before the value of a share can be determined, we must un-derstand what it is. Shares in general re-fer to the ordinary shares issued by the company, and they represent the owner-ship of a part of a company. Suppose a company has issued a million shares and you own one share, this means that you own one millionth of that company. Since shares represent ownership of a company's dividend, profit, revenue, as-set and cash flow, the ways to value shares will be based on these five catego-ries of figures.??Financial ratio analysis is based on these five categoriesof data in a com-pany's balance sheet and income state-ment,and turns them into ratios for com-parison. Besides comparing between the company's present and historical ratios, comparisons are also made against other similar companies, the industry average and the overall stock marketaverage.??We will start with the dividend yield, which is defined asdividend received in a year divided by the share price. Forexample, a company pays five cents divi-dend a year and its share price is a dollar, then the dividend yield is 5% ($0.05 divi-ded by $1 mutliplied by 100). One can find out the amount of dividends paid by companies from Monday's Lianhe Zaobao or Teletext. These show the dividend amount and the ex-dividend date. One only re-ceives the dividend if the share is bought before the ex-dividend date. In the newspapers or Teletext, a share with 'cd' behind the companyname indicates cum-dividend and 'xd' means ex-dividend.??Sometimes, the dividend amount is stated in percentage rather than cents. One should not confuse the percentage stated as dividend yield. The percentage is based on the dividend declared divided by the par value, not the share price. Most shares have a par value of $1. Those with a par value other than $1 have their par value printed behind the com-pany name. For example, 'SingTel 15?é means that Singapore Telecom has a par value of 15 cents. Last year, Singapore Telecom declared a dividend of 5 cents or 33.33% (i.e. 5 cents divided by 15 cents). Based on share price of$2.70 then, its di-vidend yield is $0.05/$2.70=0.0185%, not 33.33%.??A company usually pays dividends twice a year, one declared during the in-terim results (known as interim dividend) and the other during the final results (final dividend). When calculating the dividend yield, one should add both the interim and final dividends to arrive at the annual di-vidend. In a particular year, a company might achieve a very high profit that is unlikely to be repeated, but it wishes to reward shareholders with a higher di-videndwithout building up expectation that the high dividend will be repeated. In this situation, the compa
