Analysis Of The Essence Of Market Value Management

In the workplace, there is also a price, that is, the remuneration received, and also the value, that is, his output.

Some young people are eager for quick success and instant benefits and devote energy to studying how to raise their salaries. However, more young people can soberly focus on improving their personal ability, step by step, and as time goes on, gold will eventually shine brightly.

In terms of people's value, we should distinguish between post value and personnel value. If a person is only doing his duty and changing to a person to achieve the same effect, he will only achieve the value of his post. Some colleagues can make different results in the same post, others can not replace it. This increment value is his personal value.

This is similar to the market value of a large listed company.

The goal of market value management is to promote the company's share price to go up steadily. It appears to be a market price management. In practice, it is also somewhat like the market price management. For example, a listed company can stimulate the stock price to rise with the release of some good news, but the essence of market value management is still value management. Only the stock price supported by corporate profits can be maintained for a long time, otherwise it will be a flash in the pan.

The collapse of technology stocks and Internet stock bubbles in the 90s of last century confirmed this.

In 1974, Buffett invested in the Washington Post and acted as a director, and the media companies at that time could not wait to expand their territory, and boff urged Catherine, chairman of the board, to pay close attention to shareholder returns.

From 1974 to 1985, Washington Post sales revenue increased by only 12% annually, though stable but not impressive. The only notable change was that the operating profit of US dollar sales increased from 10 cents to 19 cents.

It has increased by 10 times, and its stock is increasing at an alarming rate of 35% per year. Buffett's investment of US $10 million appreciated to US $205 million in 10 years.

As a listed company, one of the things to be done is to push the company forward steadily.

Sustained growth.

The method of determining corporate value by finance is the net present value of free cash flow in the future. In short, it is actually the present value of the company's future sustainable profits.

Where does the sustainable profit growth come from? From the financial structure, it comes from the sales growth of the company, from the increasing gross profit level, from the constantly decreasing cost, from the falling cost, from the more efficient asset turnover; from the business structure, it will come from a solid customer base, which is derived from the good product that keeps pace with the times, which stems from the long-term trust of consumers, and stems from the smooth sales network.

In this sense, the value of a company is actually related to every business operation of the company. It is related to every contract signed, and is related to every batch of material purchased. It is related to every batch of products produced, and is related to every employee recruited, and it is related to every payment. The profit of the company is actually the convergence and accumulation of the value of each employee's daily work.

Every company

We should hook up our actions and indicators to the overall value of the company. We should realize that we are the creators of the value of the company, and we may also be the destroyer. We should ensure that our work behavior can create value for the company, not destroy the value.

At the same time, the design of the company's overall performance indicators is also critical, and should be integrated. We should take value creation as the core. We also see that many companies focus on sales volume, sales volume and market share, and ignore the gross profit, cost, receivables and inventory occupancy. The result is easy to reduce the price, or even the incremental sales of negative gross profit, promise the sales amount brought by the high promotional expenses, and the sales amount due to the receivable account. This kind of sales volume is large, the scale is up, and the profit has come down. The final result can not only increase the value of the company, but will result in the decrease of the company's value because of the decrease in profits.