Forums › OBU Forums › Valuation of company
- This topic has 5 replies, 3 voices, and was last updated 4 years ago by ignite – OBU Registered Mentor.
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- July 24, 2020 at 9:02 am #577810
Sir the as part of the analysis of the company,do l have to perform valuation
Thank you
July 24, 2020 at 1:54 pm #577832Hi – What is your research topic and what do you mean by valuation?
July 24, 2020 at 2:44 pm #577837Topic 8 business and financial analysis
Valuation of the company
July 24, 2020 at 7:40 pm #577847Not required – unless it is necessary to meet any of your research objectives or answer research questions.
You may consider analyzing share price of the company with its peers as part of financial analysis.
July 26, 2020 at 10:52 am #578102It is not just a case of ‘you may consider share price… as part of the financial analysis’ you SHOULD ensure you include some investor ratios e.g. EPS, share price trend over the 3 years.
Shareholders are key stakeholders and the aim of companies is to maximise profits and create shareholder wealth. Failure by them to do this would indicate that the company is not pursuing appropriate strategies and therefore a necessary element of the business and financial analysis. The CEO or Chairman ‘s report will normally discuss these aspects if positive
July 27, 2020 at 10:16 am #578164By valuation, I understood that you are referring to financial modelling techniques such as DCF.
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