Corporate valuation is being increasingly acknowledged as one of the main management tools in the corporate decision-making process. It has proven itself a very useful tool for both outside and inside investors.
Outside investors can use corporate valuation as an analysis tool to help them decide when to buy, sell or hold an asset. Inside investors can use it to evaluate business strategies and value enhancement. These business strategies include important investment decisions, like mergers, acquisitions, and growth. With value enhancement, business managers can identify factors that can improve a company’s performance, reflected in the value of that company.