Financial accounting How can companies control the value of

Financial accounting

How can companies control the value of their stock?

What are some methods that investors can use to determine if a corporation is worth investing in?

Solution

Companies can\'t directly control the value of their stock. They can improve only by showing good financial results which is achieved by good management.

Investors can compare company with its peers on the basis of various ratios like ROE, EBITDA margin, Net profit margin etc.

Also investors can carry out fundamental research and understand the business before investing in a company