Remove Data Analysis Remove Discounted Cash Flow Remove Dividends Remove Marketability
article thumbnail

Unlocking the Hidden Value: Exploring the Relationship between Retained Earnings and Business Valuation

Equilest

As an essential component of shareholders' equity, retained earnings reflect the accumulated profits that a company has chosen to reinvest rather than distribute as dividends. Calculating retained earnings is relatively straightforward, involving subtracting dividends and distributions from net income over a specific period.