Valuation of shares of an enterprise demands a detailed and comprehensive analysis embracing a host of factors at macro and micro level. List out five important factors that influence the determination of price of the sh

Valuing a business requires the determination of its future earnings potential, the risks inherent in those future earnings. A company's fair market value is the price at which the business would change hands between a willing buyer and a willing seller when neither are under any compulsion to buy or sell, and both parties have knowledge of relevant facts. The process of arriving at this value should include a detailed, comprehensive analysis which takes into account a range of factors including the past, present, and most importantly, the future earnings and prospects of the company, an analysis of its mix of physical and intangible assets, and the general economic and industry conditions. Five important factors that influence the determination of the price of shares are: Stock Exchange Price: The prevailing stock exchange price of the shares of the company (and comparable companies) before the commencement of negotiations or the announcement of any bid. Dividends Paid: The history and consistency of dividends paid on the shares, as this reflects the company's profitability and distribution policy. Growth Prospects: The relative growth prospects of the company and the industry it operates in, including future earnings potential and market expansion. Gearing/Capital Structure: In the case of equity shares, the relative gearing of the shares of the company. 'Gearing' refers to the ratio of the amount of issued preference share capital and debenture stock to the amount of issued ordinary share capital, indicating the company's financial leverage. Net Assets: The value of the net assets of the company, which provides a baseline for intrinsic value. Voting Strength: The voting strength in the merged (amalgamated) enterprise of the shareholders of the two companies (relevant in merger/acquisition scenarios). Past Price History: The past history of the prices of shares of the company, which can indicate market sentiment and volatility.