Analysts use both asset valuation and future sales growth as indicators of current stock values. Describe...

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Accounting

Analysts use both asset valuation and future sales growth asindicators of current stock values. Describe completely whichmethod you believe provides a more reliable indication of futurevalue, include in your discussion examples provided in class toenhance your response. Indicate the importance of the types ofassets that appear on the financial statements as indicators offuture value and the problem with off-balance sheet financing as animpediment to realistic valuation.

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Ans The best method for calculation of future value of a stock would definitely be assets valuation method because using future sales growth method does not provide the reliable valuation results since in sales growth method sales growth propels better    See Answer
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Analysts use both asset valuation and future sales growth asindicators of current stock values. Describe completely whichmethod you believe provides a more reliable indication of futurevalue, include in your discussion examples provided in class toenhance your response. Indicate the importance of the types ofassets that appear on the financial statements as indicators offuture value and the problem with off-balance sheet financing as animpediment to realistic valuation.

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