Learning Team Reflection FIN/571 WK4
Learning Team Reflection
FIN/571 WK4
Learning Team Reflection
In week four, Team A grasped the concept of calculating the valuation of stocks. The team also reviewed the concept video titled “Stock Valuation. The video focused on how markets and investors value stocks. In addition, Team A concentrated on the main drivers of stock valuation. We found that both markets and investors value stocks very highly, as stocks play a significant role in a company’s worth. They express to investors how much a company is worth. Below Team A discusses our findings.
How Markets and Investors Value Stock
As mentioned previously, stocks are an important part in a company’s worth. The market value of stocks change as investors buys and sells their shares. Many times investors think that the market value of a stock is incorrect and the market value can be overvalued or undervalued depending on their analysis of its worth. Although markets and investors value stocks, they value them differently. Investors influence the price of a stock based on the investor’s analysis of the company’s future earnings. Investors pay more for companies than its market value to make sure all shares are owned. Investors value stock very much because they can easily manipulate the price and value of a stock; this gives them a large amount of power over the market. For investors the buying and selling of stocks becomes a game to see how much they can buy or sell while also manipulating the market.
Main Drivers of Stock Valuation
Drivers of stock valuation can help organizations and companies become successful corporately and divisionally. Internal drivers relate to the actual business that investors are investing in. Whereas, external drivers are factors outside the company’s control that can affect profitability. Three things that determine stock valuation are:
• Amount of Money Invested/Growth of the Company
• Return on Investment
• Discount Rate
Furthermore, Team A learned that when
FIN/571 WK4
Learning Team Reflection
In week four, Team A grasped the concept of calculating the valuation of stocks. The team also reviewed the concept video titled “Stock Valuation. The video focused on how markets and investors value stocks. In addition, Team A concentrated on the main drivers of stock valuation. We found that both markets and investors value stocks very highly, as stocks play a significant role in a company’s worth. They express to investors how much a company is worth. Below Team A discusses our findings.
How Markets and Investors Value Stock
As mentioned previously, stocks are an important part in a company’s worth. The market value of stocks change as investors buys and sells their shares. Many times investors think that the market value of a stock is incorrect and the market value can be overvalued or undervalued depending on their analysis of its worth. Although markets and investors value stocks, they value them differently. Investors influence the price of a stock based on the investor’s analysis of the company’s future earnings. Investors pay more for companies than its market value to make sure all shares are owned. Investors value stock very much because they can easily manipulate the price and value of a stock; this gives them a large amount of power over the market. For investors the buying and selling of stocks becomes a game to see how much they can buy or sell while also manipulating the market.
Main Drivers of Stock Valuation
Drivers of stock valuation can help organizations and companies become successful corporately and divisionally. Internal drivers relate to the actual business that investors are investing in. Whereas, external drivers are factors outside the company’s control that can affect profitability. Three things that determine stock valuation are:
• Amount of Money Invested/Growth of the Company
• Return on Investment
• Discount Rate
Furthermore, Team A learned that when