| Internal and External Valuation of Companies Finding the right measure of company value is the concern of many groups such as company management, board of directors, lenders, investors, pension beneficiaries, and employees. Should one look inside the company to determine the correct value or is it better to rely on the stock price for an indication ? There are two expectations for publicly traded companies: on one hand, management should maximize the potential of a company and, on the other hand, investors should expect that the internal value of a company flows into the stock price. We will look at these different expectations in this newsletter. |
