Week 13 Reading Reflection

In chapter 14, valuation of entrepreneurial ventures, I learned a lot of new things that stuck out to me. The biggest surprise for me in the text was the part about price/earnings ratio method. I did not know that the stock of a private company is not publicly traded. It is also surprising that the stated net income of a private company might not truly reflect its actual earnings. The only part of the reading that was confusing to me was the discounted earnings method. I feel like a lot of the information is estimated so I do not see how it can be completely accurate and a good source of information. The first question I would ask the author would be, "What is the most important asset to evaluate when looking at a corporations value?" I want to know what it is the most important and what I should focus the majority of my time on. My next question would be, "What evaluation can predict future success the best?" I want to know how I am going to make the most money possible. I did not think the author was wrong about anything, but I don't think too many people rely on emotional bias to evaluation a venture!