Increasing your company’s valuation through business-driven communication
Public companies are required to communicate factual, relevant and coherent information to multiple internal and external stakeholders: boards of directors, private shareholders, institutional investors, analysts, board of directors. These stakeholders also desire high levels of company visibility in the right contexts and fora.
Companies that are unable to deliver shareholder value risk experiencing difficulty in attracting capital. Current shareholders’ patience might run out. This in turn creates an environment of insecurity and instability. In a worst-case scenario, your company experiences all three things at the same time.
Active, planned and coherent communication has a positive effect on share value. Without it, your company risks suffering from a valuation gap: a lower actual valuation of your share compared to analysts’ valuation.
According to Paues Åberg Communications’ analysis, the smaller a company is, the larger their valuation gap. And the larger a valuation gap is, the bigger the company’s problems. At the same time, a larger valuation gap means that you have more opportunities to reverse the trend.
Actual share valuation (average) in relation to analyst valuation, percentage
How can Paues Åberg Communications help you increase your company’s share valuation through communication?
- Create a coherent corporate narrative – an equity story
- Formulate a method to communicate news beyond regulatory requirements
- Build strong trust and confidence among your investors and other audiences