Friday, 15 January 2010

Activities boosting valuation

Numbers reveal behaviour.  So what exactly is value building behaviour in a company?  Here are some ideas:

  • A strong management team with longevity.
  • Hot products with plenty more in the pipeline - research and development spending that's paying off.
  • Customers in a love affair with the company.
  • A plant and equipment in top shape.
  • Consistent upward trends in revenues and earnings - no big swings or extremes.
  • Low employee turnover and high marks for its workplace.
  • A wide variety of customers without anyone accounting for more than 5 percent of the company's sales or earnings.
  • A history of an appropriate level of advertising.

e.g. Nestle Malaysia.

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