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When you do a study or assessment of the companies must be taken into account all the factors that may affect the determination of the fair market value of the company Among these factors are the following:
1. The economic conditions of the state as a whole.
2. the company's performance and financial indicators.
3. Date of establishment of the company, profitability and expected rates of profit.
4. The demand for the company's products or sales volume.
5. competitive position of the company compared to other companies, which have the same conditions.
6. Legal status of the company.
Agree with Both answers.
Major Factors are like Economic Conditions, Financial Performance, Sales volume/Market Share, Legal Status, Goodwill of the company,
Another point which I think also important to determine fair market value for a company is Human Resources.
1- Development Rate.
2- Market Share.
3- Profitability Rates
4- Government Policies and laws.
5- Expectation
6- Kind of Goods or Services
7- Interest and Inflation Rate
8- Others
1 Political Influence
2 Profits generated and sales revenue of previous years
3 Assets gearing ratio's
4 Capacity utilization
5 Technology and Machinery utilized
6 Legal status and regulatory requirements
All Economic indicators in General,
Capital Market indicators,
Currency Value Indicators,
Industry indicators which the company is categorized.
Company's Performance Indicators especially EPS and Yield.
Promoters' reputation, Brand value, Product Quality and Market share.
Liquidity of the securities, Dividend policy and payment track record.
Listing status of the Securities in the recognized Exchanges.
Market capitalization, Trade- able lots, Interest of Foreign and Domestic Institutional Investors and the present category the security is belongs to Class A Class B Class C.......Class Z like that.
Sir.Georgei Assi presented a nice answer in a modified way acceptable to all. Thank you.
Agreed with colleagues answers
Economic Conditions
Market Perception
Competitors
Customers/clients
Products/service
1. The economic conditions of the state as a whole. 2. the company's performance and financial indicators. 3. Date of establishment of the company, profitability and expected rates of profit. 4-demand for the company's products or sales volume. 5. competitive position of the company compared to other companies, which have the same conditions. 6. Legal status of the company.
1. Company's Performance
2. Economic conditions of the country.
3. Government Policies.
4. Law and Order Situation.
5. Political enviornement.
6. Rate of return.
-The heritage value
-position of the company in the marketplace
-assimilation offers demende
-breakeven point
