Ernest Castillo

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A gap between a company's market value and its intrinsic value brings significant disadvantages to all the company's stakeholders. If the share price exceeds its intrinsic value, the price will eventually fall as the company's real performance becomes evident to the market. When that fall comes, employee morale will suffer, and management will have to face a concerned board of directors who may not understand why the price is falling so far so fast.
Value: The Four Cornerstones of Corporate Finance
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