The future earnings capacity of the company is the most important factor in valuation.

Name: The future earnings capacity of the company is the most important factor in valuation.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The future earnings capacity of a company is crucial in determining its value as it reflects its potential for generating profits and growth. Other factors such as assets, liabilities, and industry trends may also influence valuation, but ultimately, the ability to generate sustainable profits is the primary consideration.

The Future Earnings Capacity of the Company Is the Most