Search results
Results from the WOW.Com Content Network
Asset specificity is a term related to the inter-party relationships of a transaction. It is usually defined as the extent to which the investments made to support a particular transaction have a higher value to that transaction than they would have if they were redeployed for any other purpose.
The value of an IP asset essentially comes from the right the owner of that asset has to exclude competitors from using it. For an IP asset to have a quantifiable value it should: [2] [3] generate a measurable amount of economic benefits to its owner or authorized user; and; enhance the value of other assets with which it is associated.
High fixed exit costs. "can include loans, which the company pays back over time, property costs, vehicle costs or any settlement packages for investors or employees." [6] Indirect opportunity costs of exit: Sunk costs. Barrier to exit for incumbent firms since the committed assets represent non-recoverable costs.
The observed prices serve as valuation benchmarks. From the prices, one calculates price multiples such as the price-to-earnings or price-to-book ratios—one or more of which used to value the firm. For example, the average price-to-earnings multiple of the guideline companies is applied to the subject firm's earnings to estimate its value.
An asset with a known price in the future must today trade at that price discounted at the risk free rate. Note that this condition can be viewed as an application of the above, where the two assets in question are the asset to be delivered and the risk free asset. (a) where the discounted future price is higher than today's price:
In general, there are a couple factors that affect the opening price. Which stock exchange the asset is traded on: ... After-hours news can push that volatility even higher. For example, Nvidia ...
AXP PE Ratio data by YCharts. And it isn't just the P/E ratio that's elevated. The price-to-sales, price-to-cash flow, price-to-book value, and price-to-earnings ratios are all above their five ...
Calculating option prices, and their "Greeks", i.e. sensitivities, combines: (i) a model of the underlying price behavior, or "process" - i.e. the asset pricing model selected, with its parameters having been calibrated to observed prices; and (ii) a mathematical method which returns the premium (or sensitivity) as the expected value of option ...