1. Present Value Model
As per this method, the present value of the company or stock is calculated by discounting the stream of the cash flow of either the future dividends or future cash available to pay dividends.
2. Multiplier Model
a. As per this model, the securities of the companies are valued as a multiple of some factors.
b. The factor used as the multiplier could be either market value the enterprise value.
c. The price of the security is some multiple of some fundamental variable which may be either
i. stated on a forward basis as an estimate, or
ii. on a trailing basis as an observed amount.
3. Asset-Based Valuation Model
As per this model, the value of total assets is estimated, and the value of total liabilities and that of preference shares is reduced from the same to arrive at the fair value.