firm value

Firm value refers to the total worth of a company, often measured by its market capitalization, which is the stock price multiplied by the number of shares outstanding. It reflects how much investors are willing to pay for a company's future profits and assets. Factors influencing firm value include revenue growth, profitability, economic conditions, and market perception. Essentially, it's an estimate of what a business is worth based on its potential to generate money, impacting decisions like investments, mergers, or acquisitions. A higher firm value usually indicates a stronger, more successful company.