What Major Items Affect a Company’s Valuation?

Enterprise value

  • Historical and projected performance
  • Current industry trends
  • Current economic trends
  • Shareholder compensation
  • Non-recurring expenses
  • Weighted average cost of capital
  • Change in working capital
  • Depreciation and amortization
  • Capital expenditures

Equity value

  • Excess cash and investments
  • Debt and other liabilities on the company’s balance sheet

Price per share

  • Control premium and marketability discount
  • Number of shares outstanding

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Executive Financial Services, Inc.
3350 Players Club Pkwy, STE 330
Memphis, TN 38125

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