Intrinsic Value Reporting

What is the value of your business?

At any given time, investors can open a web browser and see the price at which your company is selling. But what is the value of your business?

Price and value are not always the same. In fact, they can vary greatly. When they do, you have a wonderful opportunity to create maximum long-term value for your shareholders.

When price is below value

When the price of your company is well below the value of the business, your absolute best plan for growth might be a stock buyback. In those instances, investing your company's excess capital in your own stock may:

• provide greater growth than opening new stores or reducing debt;
• increase ownership per share for long-term holders;
• give your company's stock price a boost — increasing wealth for shareholders.

When price is above value

If your company's stock is selling for much more than the intrinsic value of the business, you might want to consider issuing more shares or using the stock for an acquisition. Doing so may allow you to:

• raise necessary funds for growth;
• sell less of the business for more money;
• acquire larger businesses for a lower net cost to shareholders.

When price is near value

Of course, the majority of the time you'll likely find that the price of your company is trading near the value of the business. When that happens, your shareholders might benefit most when you focus solely on growing the business.

Not sure exactly what the value of your company is? We can help.