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which one is not a main factor affecting firm's valuation? Macroeconomic environment industry affiliation accounting methods

which one is not a main factor affecting firm's valuation?

Macroeconomic environment

industry affiliation

accounting methods

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Answer #1

Accounting methods are methods which are adopted for preparations of books of accounts and they are not an important factor in determining the valuation of the overall company because these are just the recording methods into the books of accounts.

Industry affiliation would be impacting the valuation of the company because it matters that whether the company belongs to which sector and industry, whereas macroeconomic factors like inflation and interest rate will be always impacting the value of organisation.

Correct answer would be option (C) Accounting Methods

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