Business and company valuation plays a very important role in making an informed investment decision; when buying and selling shares and bonds of an enterprise on the stock market; when buying and selling an enterprise; when restructuring an enterprise; when merging, liquidating, taking over, spinning off an independent company; when determining the creditworthiness of an enterprise and the cost of collateral for lending; when insuring; when taxing, etc. The position of an enterprise on the market is determined by the market capitalization of the enterprise and determines how much investors are willing to pay for its shares.