4 ms·
What’s the value of the company if not assets + all future earnings?
by guntars 8y ago
What’s the value of the company if not assets + all future earnings?
- closeparen 8y agoThe market clearing price.
- xkjkls 8y agoI mean, that's the theoretical value that you should pay for it, but markets don't always exactly match theory.
- cityhomesteader 8y agoWhat about debt/liability? I guess you might be referring to Enterprise Value ( EV ). https://www.investopedia.com/terms/e/enterprisevalue.asp https://www.investopedia.com/terms/e/enterprisevalue.asp Ultimately, the value of a company is what someone is willing to pay for it. So you could argue the value is EV + Premium. Keep in mind that there is a bazillion ways of valuing a company. People look at growth potential of the company, the growth potential of the company's industry, the competition, external risks, buyout potential, etc. It's part business, part mathemagic and part voodoo.
- windows_tips 8y agoWhat's the value of a 'future earning'?