The financial strategies are strategies related to the acquiring needed capital/sources of fund, developing projected financial statements/budgets, management/ usage of funds, and evaluating the worth of a business.

There are primarily three ways to determine the worth of of an organisation. The methods of business worth valuation are as follows/

Net worth or stockholders’ equity

It is the total assets in excess of total outside liabilities of an organisation.

Future benefits to owners through net profits

It takes the current profit to determine the worth of a business. The worth of business will be five times of the firm’s current annual profit.

Market-determined business worth

Under this method firm's worth will be...........

The selling price of a similar company in the market or

The market price of the firm’s equity shares divided by the annual earnings per share and multiplied by the firm’s average net income for the preceding years or

The market value of firm is the number of shares outstanding multiply by the market price per share and add a premium.