Daily BriefsESG

Daily Brief ESG: Declining Number of Shares Has Just Begun and more

In today’s briefing:

  • Declining Number of Shares Has Just Begun, but Valuations Need to Rise for Market Cap to Grow


Declining Number of Shares Has Just Begun, but Valuations Need to Rise for Market Cap to Grow

By Aki Matsumoto

  • That’s good news when considering that the number of listed shares is declining, which means that the understanding of the cost of capital has spread to some extent among companies.
  • With many companies having excess cash on hand and being able to generate cash from restructuring their business portfolios, the number of listed shares is expected to continue to decline.
  • Since there are only a few companies that global investors can invest in, there is a need to strengthen profitability to increase corporate value to increase market capitalization per company.

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