Stock Markets Exposed

how can i determine the true value of a company to invest in? (not referring to stock price)?

Public Comments

1. One way to determine the value of what the public is putting on the company is to multiply the price of the stock times the number of outstanding shares. Another way is to look at the financial picture of the company. It's assets minus any liabilities would give you the value of the company. Please note: you would not expect to arrive at the same answer for the two different methods described.
2. I subtract Current Assets from Total Debt and hope it is lower than the market cap. Of course this is just a start. Circuit City is an example. CC