Looking to Capital Increase from Asset Revaluation Surplus in the perspective of Fundamental analysis

PFM Revaluation is the replacement fair value of fixed assets instead of their historical value. Since the historical cost model is causing the difference between the current value and book value of assets, revaluation of assets can help the transparency and relevance of financial statements.In recent years, Increased capital firms, due to the assets revaluation has been declared exempt from tax.because of the types of capital increases emerging capital market of the country, the consequences and implications are not been fully investigated. In this paper, the fundamental analysis framework will be based on the analysis of Capital Increase .Fundamental analysis shows that, Although the Capital Increase from the location is associated advantages such as increased equity and borrowing capacity but it Causes the decrease of financial ratios, growth rates ranging from IGR and SGR Lower than the intrinsic value of the shares and decrease the P/E, at the risk and expected return of equity implications.