Before making decisions about the investment and financing
the companies. it is necessary to know how the value of a
company is determined.
In this article three valuation methods are discussed:
1) Value Dirver Method.
2) Free Cash Flow Method
3) Economic Value Added Method.
In these methods the factors affecting the value of companies
such as operating rate of return, cost of capital. amount of
investment, duration of investment, the rate of return, and the
capital structure are explained.