The market is shaped by the forces that together create trends that affect the values and prices of all market participants.
The effects and consequences of these forces can be short-term or long-term and are always analyzed in our valuations.
These are the following main forces that shape the market:
- International Effect: corresponds to the financial flow of investors and the financial flow of foreign trade that can stimulate investment;
- Participants Effect: competitiveness, based on quality and price, entry of new participants and exit of participants;
- Offer and Procurement Effect: affected by human behavior, threats of substitutes, bargain between clients and/or suppliers, speculation and expectations;
- Technological Innovation Effect: Affects the forms of production and/or launch new products;
- Economic Effect: stock markets and currency prices oscillations;
- Legal/Regulatory Effect: laws that establish standards of quality and/or restrictions;
- Government Effect: fiscal and monetary policies that can stimulate or control the market;
- Political Effect: changes in political, economic and social regimes that can expand or control access to the market;
- Marketing Effect: actions that influence the perception of the market in general;
- Social Effect: attitudes and ways of interacting change in genarations, believes and experiences alter the way of consuming;
- Environmental Effect: level of awareness of the environment, positive or negative impacts on society;
- Cultural effect: experiences, values, religion that affect the way of consuming.
These analyzes allow us to estimate with a high degree of security the financial projects and values of the companies valued by our teams.