While investing in any company, the goal of every investor is to earn a high return in the future. Hero FinCorp, a subsidiary of Hero Motocorp Limited, offers its unlisted shares for trading to investors. Apart from knowing the exact value of Hero FinCorp Pre-IPO shares, it is also vital for every retail investor to have an estimated value of unlisted shares in the future for better investment planning.
Today, various valuation models are used to calculate the future intrinsic value of unlisted shares. Since the price of Hero FinCorp unlisted shares keeps changing and depends on different market conditions, it can be challenging to determine its future value. To make it easier for you, we will share the terminology by using which you can decide the future value of Hero FinCorp shares.
How Is The Future Value Of Hero FinCorp Unlisted Shares Determined?
Since Hero FinCorp Pre-IPO stocks are not traded on the stock market, they don’t have any pre-determined value. These shares are exchanged at an over-the-counter market value which is not fixed. That’s why deciding the future value of Hero FinCorp IPO shares is complex. Financial experts consider various factors to estimate the future value of Hero FinCorp or any company’s unlisted shares. Here are the most prominent factors:
1- Value Of Net Assets
The primary factor considered while deciding the future value of Hero FinCorp Ltd’s share price is the value of its net assets. You can easily find the net asset value by determining Hero FinCorp’s current share price in the Pre-IPO market. Unlike the book value, which relies on historical figures of unlisted shares, net asset value can be determined by considering the liabilities as well as assets of the company.
Here is the formula for determining Net Asset Value (NAV):
NAV = Sum of all tangible assets with current market value – Sum of all tangible liabilities with current market value.
When determining the future value of Hero FinCorp Pre-IPO stocks, you should also consider the current appraisal in the current financial year.
2- Calculate Book Value
An accurate book value of the unlisted share can also help you determine the future estimated price of Hero FinCorp unlisted share. The value of company assets and liabilities is evaluated based on the annual financial reports during the book value approach. You can easily calculate the book value of Hero finCorp unlisted shares by using this formula:
Book Value = Tangible assets – Tangible Liabilities
3- Price To Earning Ratio
Another method for determining the future value of Hero FinCorp Pre-IPO shares is the price-to-earnings ratio. You can take the revenue data from the revenue report of the recent financial year to determine the growth in the Hero FinCorp Ltd share price in the discount rate; you should apply the discount rate to the calculated potential value of the unlisted shares.
4- Value Of Last Transaction
Suppose you have the last transaction value or price at which Hero FinCorp raised funds from investors in exchange for unlisted equities. In that case, it is easier to determine the future value of Hero FinCorp’s unlisted shares. So, you should consider the last transaction value.
5- Determining Relative Valuation
Financial experts often use a relative valuation to determine the future value of unlisted shares of companies. To find the relative valuation of Hero FinCorp, you can evaluate it with its top competitors like HDFC Financial Services. During this, select suitable valuation metrics like Price/Earnings, EBITDA, Price/Sale, and Average Price/Pre Book Value; you can determine whether Hero FinCorp-IPO shares are trading at a high or lower value.
You need to understand that this method is only applicable when you have a competitor with a similar business model as Hero FinCorp Ltd. By using the relative valuation, you will have an estimated future value of Hero FinCorp’s share price.
Where To Get Financial Data Of Hero FinCorp?
We shared the factors and methods you can use to decide the future value of Hero FinCorp unlisted shares. However, you might need help accessing the updated financial data of Hero FinCorp online. Most investors use outdated data to calculate the incorrect future value of Pre-IPO shares.
Use Stockify to access the updated financial report of Hero FinCorp. Apart from this, you can also buy unlisted shares and check the current price, which helps you make the right investment decision. Here, you can access Hero FinCorp Ltd’s share price, financial reports, and expert guidance. To buy Hero FinCorp unlisted shares, connect with us today!
1- What Is The Hero FinCorp Share Price Today?
Ans- Today, the current Hero FinCorstockre price on Stockify is Rs 1,040. To check the updated price, connect with us.
2- How can I determine Hero FinCorp Share Price NSE?
Ans- Since Hero FinCorp is an unlisted company, you cannot determine its Hero FinCorp share price NSE.
3- Will Hero FinCorp Unlisted Share Price Increase After Its IPO?
Ans- Estimating the price of unlisted shares after the Hero FinCorp IPO is difficult. For checking the updated price in the future, use Stockify.
4- What Factors Affect The Future Value Of Hero FinCorp Pre-IPO Shares?
Ans- Factors that determine the Hero FinCorp Ltd share price in the future are as follows:
- Net Asset Value
- Book Value
- Last Transaction Price
5- Should I Consider The Estimated Price Value While Buying Unlisted Shares?
Ans- The unlisted share value is not pre-determined and changes with market conditions. You can consider the estimated price value to make an investing decision.