VA refinance mortgage 2016
What is the value of a company? On the stock market, the question will be answered daily every second newly, and for market purists mortgage rates, the resulting price volatility even expression of the ever-changing market and thus evaluation criteria.
On the other hand, it is indisputable that exchanges tend to over- and understatements, which is consequently not always determined “true” price of an enterprise in the balance sheet only the share value, but also of objectified parameters, such as the fixed assets.
Not for nothing accuse some CEO often about unfair reviews and the fact that their company is undervalued on the stock markets mortgage rates.
The 56th-day of business administration Schmalenbach Company is currently in Frankfurt with valuation issues of business apart. There is agreement that the review plays a role. “It serves as an acquisition currency, it protects against unwanted takeovers and motivates employees,” said the CEO of Deutsche Bank, Josef Ackermann. But how do you increase the value? Growth, efficient management structure, good return, transparency and good corporate governance called Ackermann as the main factors.
Way from short-termism
Measures that are geared to drive the price upwards in the short term, Ackermann rejected that, although the Bank is currently buys back its own shares from the market mortgage rates. Background of the accounting scandals were, the head of Deutsche Bank, resulted primarily from the print out to meet the revenue forecasts of the market in all circumstances. “Since we have to rethink. If a quarter times go bad, it’s just like that. The long-term sustainable value creation is what matters. “
Return on capital employed as a criterion
Even in the sixties, the company evaluation was actually a non-issue. Only with the capital market orientation of corporations and investors played a role, the question. The enterprise value is relevant if it comes about, to carry out a merger or take over market competitors. And a key measure of a company’s value is the return on investment.
Ten years ago, it has been argued in the banking sector, if in five branches money is made, why would you close one? “Today, you have to wonder whether a branch could not achieve mortgage rates more than five, and if the total guaranteed reasonable relation to the use of capital while income growth remains,” said Ackermann.