Abstract
As discussed in the previous chapters, investors inject funds into companies, expecting rewards in the form of earnings and returns on their investments. Net earnings, reported in the income statement, belong to shareholders and can be distributed to them either directly in the form of “dividends” or indirectly through retained earnings to increase their net wealth. While earnings per share (EPS) is a book value, stock prices are driven by investors’ market perception about the company. Hence, market price is a measure of the current shareholders’ value created by the company.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Bibliography
Fama, E. F. (1970). Efficient Capital Markets: A Review of Theory and Empirical Work. The Journal of Finance, 25(2), 383–417. https://doi.org/10.2307/2325486
Samaha, L. (2022). 3M's 4% Dividend Yield Isn't a Reason to Buy the Stock, Available at Fool https://www.fool.com/investing/2022/06/11/3ms-4-dividend-yield-isnt-a-reason-to-buy-the-stoc/ Accessed June 11, 2022.
Shah, K (2022). Buy These 5 Low Price-to-Book Value Stocks in June. Available at Nasdaq https://www.nasdaq.com/articles/buy-these-5-low-price-to-book-value-stocks-in-june Accessed June 1, 2022.
Zack (2022). Can Value Investors Choose Silver Standard Resources (SSRM) Stock?, Available at Nasdaq, https://www.nasdaq.com/articles/can-value-investors-choose-silver-standard-resources-ssrm-stock Accessed June 1, 2022.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
Copyright information
© 2023 The Author(s), under exclusive license to Springer Nature Switzerland AG
About this chapter
Cite this chapter
Kulwizira Lukanima, B. (2023). Market Perception Analysis. In: Corporate Valuation. Classroom Companion: Business. Springer, Cham. https://doi.org/10.1007/978-3-031-28267-6_9
Download citation
DOI: https://doi.org/10.1007/978-3-031-28267-6_9
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-031-28266-9
Online ISBN: 978-3-031-28267-6
eBook Packages: Economics and FinanceEconomics and Finance (R0)