Sunday, May 22, 2005
Valuation:
Valuation: Measuring and Managing the Value of a Company
What should a company's objective be?
Simply to maximize returns for shareholders by increasing the intrinsic value of a business, or should the company acknowledge the interests of other stakeholders-employees, customers, society-in its decision making?
Corporate-finance practitioners, the tumultuous recent past has reinforced two fundamental beliefs. The first is that the business of business is precisely to maximize shareholder value by increasing a business's intrinsic value. The more shareholder value a company creates in an effectively regulated market, the better the company serves all its stakeholders. The second is that maximizing value involves managing both performance in the short term and the long-term health of the company.
Both requires equal insight in pre-estimation of prospects of an organisationLabels: Stock Market
Posted by "CPerformance" ::
12:43 AM ::
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