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Business value is the value that a business creates through sales or services. So essentially, income - expenses + goodwill. Market Value is the price of the
by MDWolinski 3y ago
Business value is the value that a business creates through sales or services. So essentially, income - expenses + goodwill.
Market Value is the price of the stock x outstanding shares. The problem lies in that a stock price does not necessarily correlate to how well the business is doing or not doing. And the stock price can be manipulated by the Business (cut expenses to the bone to make the QTR/YR look fantastic) or by rumors or by loud mouths on TV who have a vested interest in the company, so they talk it up. Or by a tweet by the CEO claiming they'll be able to do something which everyone knows they won't, but hell, why not buy the shares.
- chollida1 3y agoAppreciate it!!
- youngtaff 3y ago> Business value is the value that a business creates through sales or services. So essentially, income - expenses + goodwill. Well WeWorks’ business value was negative as expenses always(?) exceeded revenue Goodwill is the excess paid for a business over the value of the assets so it’s a fudge factor at best When a founder of a company that’s never really made money walks away will hundreds of millions and everyone else gets stiffed you know there was something very wrong going on