« Section 302 | Main | 2002 Jobs for Veterans Act »

Aug27
Studying Valuation

The following is not meant to be legal advice.

What if there are disputes on options?  Options base valuation on the volatility of the asset.  Investment value is higher than the fair value.  It is what the buyer would consider.  Fair value is what is in the financial statements.  Different valuation methods may be used depending on the purpose, and whether the goal is for numbers to turn out high or low.  Once chosen, there needs to be consistency so that over time, there is an explanation on what happened and disclosure to use as a defense in litigation to show that the market knew the stock price reflected the judgment. 

Market based valuation is leaning on the market for valuating.  For example, looking at other companies in an industry.  Usually it is applied for the entire business. Market is assigning value to similar performers.  It is difficult to use market based valuation for intellectual property valuation.  A patent, for instance, does not give a right to do anything.  It gives someone the right to prevent others from doing something.  Valuating specific patents is rare.  Usually, a person values a portfolio.  Whatever valuation to use would be less than the amount of damages requested in an intellectual property lawsuit.

Compare market based valuation to income based valuation which is more specific.


0 Comments/Trackbacks




submit a trackback

TrackBack URL for this entry:

post a comment

Name, Email Address, and URL are not required fields.

(If you haven't left a comment here before, you may need to be approved by the site owner before your comment will appear. Until then, it won't appear on the entry. Thanks for waiting.)





Comment Preview

« Section 302 | Main | 2002 Jobs for Veterans Act »

Advertise

sponsored ads



subscribe


Prefer Email?
Subscribe below-

Enter your Email:


Powered by FeedBlitz What's this?

Current News

Support This Blog

My site was nominated for Best Business Blog!

business social media

Use these fast growing business social media sites to promote your business, feature your products, spotlight your business leaders, create links, and drive traffic back to your company site, all for free!

BIZZlogos - Add your logo - free link to your site
BIZZphotos - Add photos of your products and people
BIZZprofiles - Submit your profile and build your online visibility
BIZZspotlight - Spotlight your business with free links
BIZZvideos - Videos about businesses, products and business people.
BIZZbites - "Digg" for Business - Submit your articles and posts

know more media network

View Network Map

Network Feed List (OPML)

Know More Media Network
Feed


we support unitus

PRWeb

Influencer



CompanyCounselor is a member of the Know More Media network of business related blogs.

Here are some current headlines from some of our business publications:

ProductivityGoal

CallCenterScript

AdHurl

TheBizofKnowledge

LandingTheDeal

CustomersAreAlways

HealthCareVox

BrainBasedBusiness

TheInsurancePolicy

MarketingBlurb