Several factors, both internal and external, impact a company's stock price, and the subsequent perceived valuation of a company. Sometimes that perceived value matches that of the financial statements, and other times it is vastly different.
Therefore, discuss the factors that lead to a valuation of a company's worth compared to that of the financial statements, and how company executives create the most value for all stakeholders.
How does scripture tie into perceived valuation of a company and stock price?© BrainMass Inc. brainmass.com March 5, 2021, 12:40 am ad1c9bdddf
Discuss the factors that lead to a valuation of a company's worth compared to that of the financial statements, and how company executives create the most value for all stakeholders.
Business valuation estimates the economic value of an owner's interest in a business. It is used to determine the price financial market participants consider appropriate to sell a business. It not only includes the price of the business but also any other elements that might alter that price: litigation, taxation, etc. Financial statements are analyzed to determine business valuation by conducting "common size analysis, ratio analysis, trend analysis and industry comparative analysis." ...