What is the market value of the enterprise

The market value of the enterprise depends on many reasons. Pricing can change dramatically. This process is influenced by various economic and political factors.

Market value of the enterprise (facility)

The market value of an enterprise (or its market capitalization) is defined as the market sum of all its shares quoted on the market. For a shareholder who intends to receive income from the sale of shares of an object, this assessment is the most important. The process of changing value is influenced by various economic (book value, profit, dividends) and political factors.

The market perceives any information relating to the enterprise (for example, it can be information about the expected drought or about the scandal associated with the activities of management). Such information can dramatically change its assessment of the market, its shares may significantly decrease in price. But just the information provided about the object on the market is clearly not enough, it is necessary to apply other actions that will reflect the real processes taking place there.

Market value can be expressed as the sum of value added and capital employed over a specified period. A variety of value added is the ratio of its value to the cost of capital, which is determined by dividing the value of debt obligations (borrowed capital) and equity by the value of the invested.