CHAPTER 1 - PT2

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RandomPudding26827

Cards (5)

  • VALUE pertains to how much a particular object is worth to a particular set of eyes.
  • According to the CFA Institute, VALUATION is the estimation of an asset's value based on variables perceived to be related to future investment returns, on comparisons with similar assets, or, when relevant, on estimates of immediate liquidation proceeds.
  • Valuation places great emphasis on the PROFESSIONAL JUDGEMENT that are associated in the exercise.
  • The value of a businesses can be basically linked to three major factors, except Current Operations, Future Prospects, and Embedded Risks
  • CURRENT OPERATIONS is one major factor linked to the value of business that shows how is the operating performance of the firm in the recent year.