Equity Valuation

Valuation estimates a conditional value, not an executable price. An earnings multiple needs a sustainable earnings measure; price-to-sales also needs a margin story; asset-based NAV needs current asset values and liabilities. Compare firms with consistent accounting scope, currency and periods. Forward figures are assumptions, not filed facts. A method becomes misleading when losses, cyclical peaks, leverage or poor asset marks violate its logic. Sahmino keeps methods and inputs visible so you can change an assumption and understand why the result changes.

Worked example (hypothetical)

Expected EPS of 500 rial multiplied by P/E 8 implies 4,000 rial. EPS of 350 at the same multiple implies 2,800. A price-to-sales result cannot be treated as the same method without considering margins and debt.

Check your understanding

Which valuation input is an observed fact and which is a forecast? Label both and retain the source date before comparing results.

Sources, reviewed 5 October 2026

• Multiples: First Principles
• Net Asset Value