Basis for Stock Worth by William N. Hosley
ARTICLE SYNOPSIS ...V14:2 (63-64): Basis for Stock Worth by William N. Hosley
Estimating a company's value can be the initial filter for identifying trading opportunities. Here's a method to determine a company's value based on earnings growth rates and interest rates.
How much is a stock worth? The answer is simple: Whatever someone is willing to pay. That reply, while true, leaves a great deal to chance and provides nothing in the way of the advantage that all stockpickers seek. A theoretical value of a stock can be a valuable benchmark. In conventional accounting, the value of a stock is the present worth ...