Stock Valuation
September 23, 2007Value, be it the value of a house, a business, or a normal sized trading lot of shares of a public company is equal to the present value of all future benefits expected to be derived therefrom. Value, being point in time specific, changes with changing circumstances and conditions both internal to (i.e. within the control of the owner) and external to (i.e. outside the control of the owner) the asset. The determination of the value of any asset absent an actual open market negotiation where both buyer and seller have full knowledge (or at least access to full knowledge) of matters relevant to an asset’s value can be said to be determined in hypothetical market.

