For my chosen company I feel the income approach would be best but
after looking at some definitions of market approach I feel that this one
could also apply here. i
The market approach is a method of determining the value of an asset
based on the selling price of similar assets. This approach studies
recent sales of similar assets, making adjustments for the differences
between them. The market approach relies on comparisons to similar
assets, it would be most useful when there is enough data on recent
sales to compare assets. Meaning if I were to compare sales of Nike to
Adidas, which is one of the top competitors of Nike, this would give
enough information on what it is that Nike needs to do to boost sales.
This may come in a form of more advertisement or just a way to cut
costs to boost revenue.
Any company that is public is going to run the risk of its industry as
competition seems to be what drives the ups and downs of pricing. i The
size of the company and where that company sells goods and services
also play an important role in how well the company's revenue will be.
This applies to global markets as well with the foreign exchange rate.
