It takes complex calculation on Wall Street to determine how much a piece of a company is worth. I would venture to say that we could probably apply some of the same logic to determine how valuable we are to the organizations we own, run, or belong to.

This is more of an internal gut-check measure, to be sure, but it gives us something of a barometer to see how well we are contributing to our respective organizations, and being compensated (or not) for it.

Here are some things that roughly figure into the stock price. Analysts and Academics will tell you that stock prices are a measure of the long term value of a company. I don’t quite agree with that, there is a much more emotional and subjective element to stock trading than the analysts would likely admit. So below I’ve listed some of the objective and subjective stock pricing components I’ve observed over the years, and perhaps introspectively turning some of the questions on ourselves may reveal some opportunities for growth that we may want to consider:

• Value and Viability. Do you have something people, businesses, or governments are buying now?
• Uniqueness. Why should I invest in your stock, instead of someone else’s? What makes you different from others?
• Innovation. Can you adjust with the globalized environment to offer new service or things that people, businesses, and governments will buy in the future?
• Performance. How are you in “hitting your numbers”, achieving your goals, achieving profitability, dividends, and return on investment for the owners?
• Perception. Public reputation of your company in the worldwide marketplace. Do people like doing business with you?
• Keeping your promises. Are you able to do what you say will do? If you change your word (guidance) do you meet that new expectation? or conversely, if you change your guidance too frequently does that make people wary about trusting your word and your actions? 
• Consistency. Do you have a track record for consistent and solid performance for over the course of multiple quarters and multiple years?
• Growth Plan. Do you have a good plan for growth over the short term, and over the long term?
• Price. Are you too expensive (overpriced), priced appropriately, or undervalued and under the radar?

Question: It might be fun to think about this in terms if your salary. In your view, given the above pricing components would you consider yourself too expensive, undervalued, or valued just right? Why do you think? You can leave a comment by clicking here.

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