At this link is a pretty old article about company valuation, but it is important to remember that in the seven years since it was published, not an awful lot has changed. Intellectual capital (even informal networks which can be counted as part of it) is not necessarily counted on a company’s balance sheets.
I’m no accountant, but I recognize that valuation is the source of some of our ﬁnancial ills today. The quest for ever-higher quarterly results leads to short-term business decision-making—in contrast to outﬁts like Toyota or, for that matter, many of the United States’ most successful companies before they became obsessed with delivering a share price before good products and services.
A shift may be a good thing. A brand’s value rests less on its share price and more on its inherent equity and the connection between each branding stage (vision, research, exposition, image). Considering this notion, because it actually involves people, may determine corporate performance far more accurately than the traditional balance-sheet items. In fact, I’ve used it myself to see where a company might head in the years to come, with some accuracy. Certainly no worse than playing the market based on advisers’ tips.
I’ll leave that as food for thought as I have to get up early for TV. Today’s topic on Good Morning: compromises. How much do you need to compromise? Watch TV One in New Zealand at 9.30 a.m. NZDT, or streamed online at the Good Morning mini-site. The time translates to Thursday, 8.30 p.m. GMT, or 3.30 p.m. EST. (We put our clocks back this Sunday, which will affect these time zone conversions.) Posted by Jack Yan, 11:38
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