How to assess and communicate the financial value of the organization
For comms pros, knowing the ins and outs of market capitalization and P/E ratio can be invaluable in sharing the financial strength and business savvy of your company.
[Editor’s Note: This is an excerpt from “Business Acumen for Strategic Communicators: A Primer.” You can purchase the book here and Ragan/PR Daily readers receive a 30% discount with the code BUSINESS30.]
There are many different financial valuation metrics and models that businesspeople, investors and other financially oriented stakeholders pull from financial statements to assess the current and future potential value of a business.
A valuation is an estimation of the economic worth of a business asset, unit or the entire enterprise. For publicly traded companies, the company’s stock price changes each trading day, thereby providing a near real-time view of the company’s ascribed total market value. For private companies, share ownership is more difficult to value due to the absence of a public market for the company’s shares. Private companies may hire an outside independent party, such as investment bank, to conduct a valuation analysis. Public companies also hire bankers to conduct such analyses.
Become a Ragan Insider member to read this article and all other archived content.
Sign up today
Already a member? Log in here.
Learn more about Ragan Insider.
