Ruben Contreras
Valuation of a company can have determination and responsibilities from stakeholders and management. There is a sum of factors that have essential impacts on a company’s shares and value. Supply and demand of stock are what have impacts on stock prices, which have important factors of stock price and value. Stewart (2013) stated that “The major factors that affect this supply and demand are internal factors, overall market factors, external events, and finally hype”. In making this comment, Stewart argues that internal factors, overall market factors, external events, and hype are important factors that have important effects on supply and demand, overall stock price values. According to Harper (2021)”Fundamental factors drive stock prices based on a company’s earnings and profitability from producing and selling goods and services”. Harper is insisting that fundamental factors have high involvement and importance on businesses proceeds based on stock values and performance. According to Harper (2021) “Technical factors relate to a stock’s price history in the market pertaining to chart patterns, momentum, and behavioral factors of traders and investors”. Harper’s point is that external conditions can have impacts on a business stock value based on the supply of and demand. Chen (2020) stated that “Valuation is a quantitative process of determining the fair value of an asset or a firm”. Basically, Chen helps define valuation which deals with rational processes of determining the prevailing valuation and assets of a business. Chen stated (2020) “Valuations can be quickly impacted by corporate earnings or economic events that force analysts to retool their valuation models”. The essence of Chen’s argument is that valuations are important to help regulate the present value of a business. Valuation helps determine an economic amount in a stakeholder’s activity in a business. Overall, stakeholders and management help structure and important relations between executive management and stakeholders.
References
Chen, J. (2020). Valuation Definition. https://www.investopedia.com/terms/v/valuation.asp
Harper, D. R. (2021). Forces That Move Stock Prices.
https://www.investopedia.com/articles/basics/04/100804.asp
Stewart, K. (2013). What Makes a Stock Price?
https://stocksfortheweek.com/what-makes-a-stock-price-2/
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