VALUATION OF BUSINESS ENTERPRISES

ABSTRACT

According to Duff & Phelps- Value ("Fair Market Value" or "FMV") is the
price at which a property would change hands between a willing buyer and
a willing seller when the former is not under any compulsion to buy and
the latter is not under any compulsion to sell, both parties having
reasonable knowledge of relevant facts.
Valuation is the process of estimating the potential market value of a financial asset or
liability.
Valuations can be done on assets (For example, investments in marketable securities such
as stocks, options, business enterprises, or intangible assets such as patents and
trademarks) or on liabilities (e.g., Bonds issued by a company. In financial jargon,
Valuation of a company means how much a company is worth of. Valuation means the
intrinsic worth of the company.
The objective is to Study the basic concepts related to Valuation and to study the major
models of valuation.
The research methodology used is the data collected from the secondary source that is
information from reports, books, e-books and various registered internet websites which
are reliable and reputed and it also includes a case-study on valuation of Genpact.

The conclusion is based on three models of valuation in which it states the advantages
and limitations of models and the recommendations are that Valuations it is very
difficult to advice and suggest and every Company has its own way of valuation and
assumptions. The management knows the insight to the company better hence; it is hard
to recommend them for future. as it is very critical and vast. The Research studies are too
many and each one has its own justification

ACKNOWLEDGEMENT

This dissertation has been a great learning experience for me and I would like to express
my gratitude towards all those people who guided me throughout, and without whose
guidance and support this dissertation would not have been completed successfully.
I express my sincere gratitude to my faculty guide, DR.S.K LAROIYA, for his able and
continuous support and cooperation throughout my dissertation, without which the
present work would not have been possible.
I am also thankful to all my friends who have supported me throughout my work.