Showing posts with label Valuation formula. Show all posts
Showing posts with label Valuation formula. Show all posts

Sunday 17 May 2009

**** Valuation: How much is a share of stock really worth?

How much is a share of stock really worth?
http://www.moneychimp.com/articles/valuation/stockvalue.htm

Not just in terms of analysts' opinions, but logically, based on facts?
In theory, the answer is simple: a company is worth the total amount of cash it will generate over its lifetime, discounted to its present value. (And don't panic if you don't really understand that last sentence, because the next page explains it. You do not need any background to read this article.)

This article presents a simple discounted cash flows calculator, along with some popular variations and shortcuts, to make stock valuation make sense.


Valuation Intro
A Little Theory
DCF Calculator
P/E Ratio
P/S Ratio
PEG Ratio
Graham Formula
Dividend Discount
Buffett Formula (?)
CAPM Calculator
Books & Links