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What are the factors that affect the determination of the fair market value of the companies?

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Question added by georgei assi , مدير حسابات , المجموعة السورية
Date Posted: 2014/11/04
georgei assi
by georgei assi , مدير حسابات , المجموعة السورية

When you do a study or assessment of the companies must be taken into account all the factors that may affect the determination of the fair market value of the company Among these factors are the following: 

1. The economic conditions of the state as a whole. 

2. the company's performance and financial indicators. 

3. Date of establishment of the company, profitability and expected rates of profit. 

4. The demand for the company's products or sales volume. 

5. competitive position of the company compared to other companies, which have the same conditions. 

 

6. Legal status of the company.

Zubair Jahangir
by Zubair Jahangir , Cost Accountant , Rotana Hotels

Agree with Both answers.

Major Factors are like Economic Conditions, Financial Performance, Sales volume/Market Share, Legal Status, Goodwill of the company,

Another point which I think also important to determine fair market value for a company is Human Resources.

Ahmed Abd Alwahab Awad Ibrahim
by Ahmed Abd Alwahab Awad Ibrahim , Chief Accounting , ICCDP

1- Development Rate.

2- Market Share.

3- Profitability Rates

4- Government Policies and laws.

5- Expectation

6- Kind of Goods or Services

7- Interest and Inflation Rate

8- Others

 

Malik Khalid Mahmood
by Malik Khalid Mahmood , Regional Finance Manager , Leosons International FZ LLC

1 Political Influence

2 Profits generated and sales revenue of previous years

3 Assets gearing ratio's

4 Capacity utilization

5 Technology and Machinery utilized

6 Legal status and regulatory requirements

VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

All Economic indicators in General,

Capital Market indicators,

Currency Value Indicators,

Industry indicators which the company is categorized.

Company's Performance Indicators especially EPS and Yield.

Promoters' reputation, Brand value, Product Quality and Market share.

Liquidity of the securities, Dividend policy and payment track record.

Listing status of the Securities in the recognized Exchanges.

Market capitalization, Trade- able lots, Interest of Foreign and Domestic Institutional Investors and the present category the security is belongs to Class A   Class B   Class C.......Class Z like that.

Sir.Georgei Assi presented a nice answer in a modified way acceptable to all.  Thank you.

ghasan katreeb
by ghasan katreeb , محاسب , ادارة الموارد الساحلية

Agreed with colleagues answers

Hamid Mahmood
by Hamid Mahmood , Branch Services Manager , Faysal Bank Limited

  1. Economic Risk 
  2. Market Risk 
  3. Currency Risk 
  4. Season Risk ( If company offer seasonal products) etc 
  5. Inflation Risk 
  6. Many more :) 

Divyesh Patel
by Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town

  1. Economic Conditions

  2. Market Perception

  3. Competitors

  4. Customers/clients

  5. Products/service

  6. Legal documents

 

1. The economic conditions of the state as a whole. 2. the company's performance and financial indicators. 3. Date of establishment of the company, profitability and expected rates of profit. 4-demand for the company's products or sales volume. 5. competitive position of the company compared to other companies, which have the same conditions. 6. Legal status of the company.

Tanveer Qureshi
by Tanveer Qureshi , Director , Qureshi Associates

1. Company's Performance

2. Economic conditions of the country.

3. Government Policies.

4. Law and Order Situation. 

5. Political enviornement.

6. Rate of return.

Hammami Mohamed
by Hammami Mohamed , Financial manager , SMAS

-The heritage value

-position of the company in the marketplace

-assimilation offers demende

-breakeven point

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