Gap analysis

The Gold edition includes the Gap analysis report comparing strategic, book and market valuations. GAP Analysis compares the market capitalization of a business to its book and strategic value.

Market capitalisation is the public's assessment of what they think the company is worth. They reach this conclusion based on the number of issued or outstanding shares (excluding those shares bought back by the company) and the price per share. Market capitalization reflects outsiders views on the net worth of the company.

Management's calculation of value (strategic value), the value based on assets in the balance sheet excluding goodwill,  and the public opinion of value dont always agree. Gap analysis shows management where and why the discrepancies exist and what needs to be done to achieve a required value. With Strategic Focus you can model the markets perception in advance.