Business & Finance Valuation Issue Assignment

Book 

Hitchner, J. (2025). Financial valuation: Applications and models (5th ed.). Hoboken, NJ: Wiley.

Disclaimer: The above resource provides information consistent with the latest research regarding the subject area. Liberty University does not necessarily endorse specific personal, religious, philosophical, or political positions found in this resource. 

Recommended Resource

American Psychological Association. Publication manual of the American Psychological Association (Current ed.). Washington, DC: American Psychological Association.

  

• Read: Hitchner: Chapters 1 – 4
• 
  
• PageWatch: Financial Valuation  
• https://canvas.liberty.edu/courses/934965/pages/watch-financial-valuation?module_item_id=101647502

 Valuation Issue Assignment 

VALUATION ISSUE ASSIGNMENT INSTRUCTIONS

OVERVIEW

Determining the market value of a publicly traded company can be accomplished by merely

multiplying the company’s current stock price by the number of shares outstanding. This process

“works” because the market, made up of millions of investors, is applying a value to the business

every day in the stock trading process. Unfortunately, the process for determining the value of a

private firm is not as straightforward or transparent. Private companies do not report their

financials publicly, and because these firms do not have stock that is listed (and traded) on an

exchange, it is often difficult to determine the value of a private company.

Nonetheless, valuations are an important part of business, company managers, creditors, and

equity investors. For companies, valuations can help measure their progress and success, and can

help them track their performance in the market compared to others. Investors can use valuations

to help determine the worth of potential investments. They can do this by using data and

information made public by a company. Regardless of who is using the valuation, it essentially

describes the company's worth.

INSTRUCTIONS

Using the first four chapters in the Hitcher textbook as your primary reference, and

supplemented by appropriate secondary sources, identify and discuss two (2) specific issues or

challenges that valuation professionals face when attempting to properly assess the current value

of a private business. Your paper should have an Introduction, two “body” parts (specific issue

or challenge one and specific issue or challenge two) appropriately titled, and a Conclusion. The

body parts need to clearly define the issue/challenge, fully discuss why this issue/challenge is

important, and suggest what valuation professionals can do to limit the impact of the

issue/challenge.

• Assignment length: At least 750 words (excluding title page and references) in current

APA format.

• Number of citations: At least 3 (in addition to your textbook, which must be your primary

references). Remember: any article/source listed in your references must be cited at least

once in your paper.

• Accepted sources: Books or other scholarly/professional sources. Remember,

Investopedia, Wikipedia, websites, periodicals (e.g., newspaper, magazine, newsletters),

and blogs are not scholarly/professional sources. You can use these in your paper (if

properly cited), but they do not count towards the required number of citations.

Note: Your assignment will be checked for originality via the Turnitin plagiarism tool.