Posted on : February 23, 2017
Views : 1
Category : Finance

Moritz Hiemann (Professor, Columbia Business School), presents ‘How do Earnings Relate to Firm Value?’ The relationship between a company’s earnings and its stock price can be complicated. High profits don’t necessarily mean a high stock price, and big losses don’t always lead to a low stock price. Of course, without earnings it is hard for companies to stay in business for long. You could say that two of the major factors that influence stock price are current earnings and promise of future earnings.