Tuesday, July 20, 2010

What Determines Value?

Someone recently asked me: "What determines value?" Here's the short answer (short but still too long for Twitter):

Value is determined by many factors. In no particular order:

§ Earnings growth
§ Strength of management team
§ Customer base and concentration issues if any
§ History of reinvestment in the business
§ Reputation
§ Caliber of employees
§ Age of equipment