Skip to content
ACCA exam results — Are you ready?Chat about it >>

Ask the Tutor ACCA AFM

earning volatility

Jjess11y ago
can u explain how reduction in earning volatility can increase value of company?
John MoffatJohn MoffatTutor11y ago#1
Volatility is the risk. If there is less volatility there is less risk. If the business is less risky then investors will accept a lower return and the value of the business will be higher.
Sign in to reply to this topic.