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0
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2answers
109 views

How to measure the cost/value of an Asset in the Financial Statement

I am currently working on my own Financial Statements. I have several blogs and derive considerable income from it then i decided to put all the assets and liabilities in the books. My problem is ...
3
votes
1answer
547 views

What prices are compared to decide a security is over-valued, fairly valued or under-valued?

The Capital Asset Pricing Model (CAPM) for asset i is E(R_i) = R_f + \beta_{i} (E(R_m) - R_f) It can be used for asset pricing We can compare the expected/required rate of return, E(R_i), ...
3
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3answers
4k views

How to calculate stock price (value) based on given values for equity and debt?

If a company has $80 million in equity and $20 million in debt, this means that total firm value = D + E = $100 million. Am I then right to assume that if there are 1 million shares outstanding, then ...
6
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2answers
328 views

Correct calculation for determining real business book value per share?

I'm trying to calculate the real value of a business and, as an example, I picked Netflix. From their latest financial statements I can see that: Assets value is: $3,065,709,000 Liabilities value ...
3
votes
2answers
2k views

If a stock is selling for less than book value, is the company headed for bankruptcy?

A company's book value is the worth of all their assets. If its stock value is less than its book value, does that mean its business is worthless and bankruptcy is imminent? This is a followup to my ...
6
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4answers
844 views

What could cause a stock to trade below book value?

A company's book value is the worth of all their assets. What would cause a stock to trade below book value?