Company valuation, also known as enterprise valuation, enterprise value evaluation, etc. Corporate valuation refers to the evaluation of the intrinsic value of listed or unlisted companies. Generally speaking, a company's assets and profitability depend on its intrinsic value.
Why should enterprises pay attention to it?
1. Entrepreneurs and shareholders can understand how much a business is worth.
2. If you want to sell the enterprise (sell equity) for money, go to the capital market and expand production and operation, enterprise valuation is essential.
3. Show investors what is valuable and what is not.
4. The process of valuation is also a process for enterprises to get familiar with the capital market and solve the problem of being in a weak position because of the asymmetric information between entrepreneurs and investors.
5. Improve the efficiency of entrepreneurs' decision-making, and make the investment decision-making process less detours and more efficient.
6. It is an important means for enterprises to show their development strength and expand their influence, which is helpful to increase the cohesion of enterprises.