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1) How does a company measure its own value?
There is no exact measurement of a company's value, however there are several key factors that compose an estimate. Such factors involve:

  • Corporate structure
  • Interstice value
  • Discounted cash flows 
  • Market research
  • Sales and burn rates
  • Capital
  • Cash flow
  • Barrier to entry

2) What is interstice value?
It is a combination of true market value and financial value

3) What is true market value?
True market value is one that is involves the bicycle effect.

4) What is financial value?
Financial value is one that is based on a corporations earnings.

5) What is the Bicycle effect?
It is a company's rapid decrease in earnings after a consistent growth pattern.

6) What causes the bicycle effect?
Market expectations.

7) Why does a company go through the bicycle effect?
Because the company's unusual history of growth in earnings remains to be expected, when it is hire than the company's growth capability.

8) What is the average return on investment?

9) What do investors expect as a return on their investment?
10 to 1000 %.

10) What drives the expected return on investment?

11) What is discounted cash flow?
It is a hypothetical value measurement tool using a companies projected sales and revenue from the future and backdated into the present.

12) What does market research have to do with value?
It's a tool by which a company can compare itself to another.

13) How do I perform a market research?
Market research can be performed in many ways. By defining the exact industry you are in and comparing yourself to 3 to 10 companies within that industry, similar to yours in size and value is one of the most commonly used method.

14) What is Burn Rate?
It is a company's dilution of its funds.

15) Is Burn Rate bad?
Not at all if it's planned.

16) Question: What is a barrier to entry?
It is an obstacle that prevents or reduces the companies growth rate.

17) Question: What are some barriers to entry?

  • Competition
  • Market share 
  • Speed to market 
  • Cash flow Etc.

18) Question: What is an exist strategy?
It is a company's final destination. It usually involves earnings and return on investment.

19) Question: What is speed to market?
It is an inconstant time frame that a company has to meet its product or services goals.

20) Question: Why is speed to market important?
Because the inconstant time frame offers hire return on investment.

21) Question: What is a patent?
It is a product or service that is exclusive to its inventor.

22) Question: Why are patents important?
Because they offer control on their products market share

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