A company’s valuation helps prospective investors interested in the real value of a company to determine whether it is overvalued or undervalued. In these cases, if it is publicly offered, its value per share is not determinative and may not coincide with that of the stock exchange.
Also, the assessment is necessary for investment intentions in part of the company, if the company itself wishes to participate in a public offering for the possibility of financing it by issuing shares.
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