Finding real worth of a company is an important and difficult task for investment analyst. Various simple financial statements and ratios are used to find the value of a company. The Investment analyst uses various methods and tools for this purpose such as Asset-Based Methods, Comparables, Cash Flow Methods, Option-Based Valuation and Special Applications. In asset based method the analyst evaluates the values of the assets. The most common way to value a company is to use its earning. A company is measured according to earning per share (EPS).
