+1(323)689-1506 support@essayhubmarket.com

Looking for help with an assignment? Connect with an assignment Expert Now!

factors that can impact a company’s stock price and perceived value of the company.

Company executives are tasked with creating the most value they can for all their shareholders.  There are many factors that contribute to company’s worth.  There are also many factors that can impact a company’s stock price and perceived value of the company.  These factors can be internal and external that determine the valuation of a company and affect the financial statement.

Executives create the most value for all their stakeholders by addressing these areas:

  • Focusing on the competitive environment that their business competes.  They should make business decisions based not the individual stockholder’s but on the competitive climate.
  • Make business decisions that create a greater expected value, even at the cost of lowering near-term earnings.  Many businesses compare and evaluate decisions based on the estimated impact on earnings, when they should be measuring their earnings against the incremental value of future cash flow.
  • Executives should carry assets that will only maximize the value of the company.  These assets would be products that customers are willing to pay higher prices for such as brands, real estate, or other assets.
  • Always return additional cash to shareholders when there are no profitable opportunities to invest in the company.
  • Provide shareholder with information that is relevant and valuable. Better information helps reduce investor uncertainty and will, in the long run, reduce capital cost and grow share price (Rappaport, 2006).

Beside executives affecting the company’s value, sometimes external factors affect a company’s valuation.  These external factors will affect a businesses’ value:

  • Taxation:  All companies try to keep their tax payments to a minimum
  • Company Assets: Real estate, equipment, patents, trademarks and agreements.
  • Government policy:  Political trends.  Which political party is in in control? Democrats or Republicans.
  • Capital markets: Value of money, Rate of Return, and money supply
  • Macro-economic forces: economic outputs, unemployment rates, and inflation Wesley (Legg, 2015)

With these areas of concerns affecting the valuation of a company, the stock prices can also be affected by similar events.   These issues affect stock prices, which in turn, could affect the valuation of a company.

  • Internal actions of a company:  Mergers, acquisitions, earning reports, innovations, and suspension of dividends.
  • World events: wars, civil unrest, terrorism, and pandemic
  • Inflation and interest rates: Federal Reserve monitoring inflation
  • Financial reports and company hype:  Introduction of a new product and endorsements by respected investors like Warren Buffet.
  • Exchange Rates:  Foreign currency has an impact on stocks (Wolski, 2019).

However, all these factors will be compared and analyzed using the company’s financial statement.  The financial statement shares the company’s business activities and financial performance.  The balance sheet provides the company’s assets, liabilities, and stockholder’s equity.  This report provides a quick view of the company at a certain time (Murphy, 2015).

Like in any business transaction, the value of the business, product, service, is what an individual, company, or group is willing to pay for it.


Legg, W. (2015, February 24). How External Market Factors Drive Your Company’s Valuation. Retrieved from https://foundersib.com/2015/02/24/how-external-market-factors-drive-your-companys-valuation/

Murphy, C. B. (2020, October 27). How to Interpret Financial Statements. Retrieved from https://www.investopedia.com/terms/f/financial-statements.asp#:~:text=Key Takeaways-,Financial statements are written records that convey the

Rappaport, A. (2014, August 01). Ten Ways to Create Shareholder Value. Retrieved from https://hbr.org/2006/09/ten-ways-to-create-shareholder-value

Wolski, C. (2019, February 12). Five Factors or Events that Affect the Stock Market. Retrieved   from https://smallbusiness.chron.com/five-factors-events-affect-stock-market-3384.html

Get a Quick Quote

Approximately 250 words
Total price (USD) $: 10.99

Reviews from Clients who Ordered From Us:

Kate Hogan

They are my go to assignment helper and have been a great help. Thank you!

Sheena easton

I`ve been working with this website for over a year! Here`s what I liked the most about them. First, quality of writing (creative and with catchy titles).

Our Benefits

Get your essay writing needs completed by us and enjoy these and more benefits:


Whether you have a last minute discussion post due in a couple of hours or the last day in class and you totally forgot to work on that research paper, we always put everything aside to save your grade

Custom Essay

Our qualified team of experts have access to varied online library databases to help with recent and well researched tools that help in writing your paper to deliver a profound research that earns you a stellar grade

80+ Subjects

We do not turn down any type of work. We have qualified writers holding bachelors, graduate and Doctoral certificates matched with skill and expertise. Get help with homework acroos varied subject

Real Time Tracking

We have a user friendly interface to help you track the progress on your order from your client portal. Additionally, with each and every step, you will get notified on the status of your paper to give you an easy time to do other kinds of stuff

Order Our Custom Essay Writing Service

1. Making an Order Tip and Tricks

  • Choose the type of assignment, topic, subject, length, and deadline for your paper.
  • Indicate the following order parameters: service, chosen writer level, number of cited sources, and citation style.
  • Add your document or provide instructions for paper in a specific form.
Image showing step 1 of making an order
Image showing how to make payment for your order

2. Tips and Tricks for Choosing the Right Writer

  • Log in using your email address or your Facebook account.
  • A list of suitable writers will be offered to you. Before making a selection, you can read testimonials or engage in a Live Chat with authors.
  • Check your balance and, if necessary, add funds to your account. Here you will also find exclusive bargains.
  • Put money into the account of the chosen writer.

3. Tips and Tricks for Supervising the Writing Process

  • Get the chance to keep track of the process and connect with your writer.
  • If required, include updated instructions.
  • Have a conversation with your author.
Image showing how to supervise writing process
Image showing how to download your completed results

4. Tips and Tricks to Enjoy the Results

  • You will receive the paper. You have the option of requesting modifications if they are required. Before giving it back to the writer, make a list of the adjustments that need to be made.
  • Accept the paper and send the money to the author.
  • Rate your writer, submit your request, then sit back and enjoy the results.

How can we even make your school life easier with our services?

We always strive to provide the best techniques and skills that help your essay a stellar paper. We have achieved this through the years by offering features such as:

Progressive Delivery

Your order is assigned to a writer who delivere’s your bulk research projects in small chunks and making edits upon feedback from the professor

Native Writers

Our writers are varied across different coutnries such s Canada, Australia, U.K and the United States. Request a native speaker writer to help you ace that paper

Powerpoint slides & other visuals

Order a visual such as Powerpoint to better expound your research paper at $10 per slide including speaker notes

Top rated writers

Order from among the top 10 rated writers at no extra cost