Stable Business
Low discount rates and stable businesses increase the companies value, because future cash flow are less risky. A stable business makes forecasting a companies' future financial results easier. Therefore, their is less risk to an analysis. Plus, the business has an easier ability to plan for future spending needs or business development initiatives. Stable financial operating performance helps to decrease risks in the underlying business, which increases the value of the business.

Stable businesses can come about a variety of ways. Most like, the business is a competitor in an industry, which has reached the mature stage of the business cycle. Once at this stage, the industry no longer growing at an above average rate. When growth slows, the companies in the industry start to compete directly with each other. Financial margins, market share and profitability become more important, because growth is no longer the driving force in the business. The mature stage is more stable than the growth stage, and thus, makes forecasting much easier. - (edit / improve)

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SWOT Strengths

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SWOT Weaknesses

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SWOT Opportunities

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SWOT Threats

Universal Health Care (1)
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