earning volatility

This topic has 1 reply, 2 voices, and was last updated 11 years ago by John Moffat.

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December 1, 2014 at 3:22 am #214939
jess
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can u explain how reduction in earning volatility can increase value of company?
December 1, 2014 at 8:59 am #215001
John Moffat
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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.
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