Factors influencing valuation

Factors influencing valuation

There are various factors that influence the valuation of a company or firm.

The nature of business in which the company is involved and history of the business.
The economical benefits of the business in general and how good it is in the specific sector in which it is involved.
The effectiveness of the management and its strategies.
Value of assets and liabilities of the company and the financial status of the company.
The capacity of the company to earn.
The capacity of the company in paying dividends.
The goodwill of the company and its intangible assets.
The value of its shares in the private companies.
The market share of the company.
The adjustment in accounting.