Research Request
Have a question and you can't find the answer?
Send us a Research Request and let our team of academicians help.
|
Firm Valuation Overview
The growing complexities of firms and their underlying assets has dramatically increased the requirements placed on those valuing them.
Large scale change resulting in shifts in the nature of firm assets (intangibles) is the primary culprit for this growth, leading to a steady decline in the usefulness of financial information reported by firms. Traditional methods of valuing firms are no longer valid, as the market "bubble" and "bust" of the last 90's has shown.
The ability to properly account for and value innovative activities and assets such as research and development, information technology, brand names, and human resources is vital in today's environment, but is just a piece of the puzzle if we are to prevent a reoccurrence of the market failures of the late 90's.
Next topic: The Whole Picture»
