New method revolutionizes enterprise valuation for reliable financial decision-making.
The article discusses how to figure out how much a company is worth by using its financial data. The researchers wanted to find a reliable way to calculate a company's value. They compared different methods of valuing companies and found that using the company's assets and expected profits is the best approach. By adjusting for potential risks and alternative investments, they came up with a method that works for both profitable and unprofitable companies.