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Company Valuation and Securities Pricing

  • Broadcast in Business
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            The valuation of your company, using the Wall Street pricing model, utilizes the P/E ratio as its core-pricing component. That component is determined primarily by the estimated annual earnings growth rate. Once again, although illustrating a healthy annual earnings growth rate is important, it is more important that the growth rate be as realistic and conservative as possible. You should not be concerned when calculating the revenue growth rate, which would ultimately lead to the net earnings growth rate, about how a slow conservative growth rate may relate to the estimated internal rate of return of a particular security.

Learn how to value your company pre capital as well as post capital. Learn how to price your common and preferred stock, as well as, Notes & Bonds – convertible or otherwise.