For questions relating to the valuation of stocks, based on fundamental analysis, market conditions, etc.

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Oil Tracking Indexes

I am trying to understand why an index like, SPGSCLP (S&P GSCI Crude Oil Index Excess Return), which states that it tracks oil prices does not have the same index value at different points when ...
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0answers
30 views

Valuation of a public company's positions in “controlled companies” vs. “marketable securities”? [closed]

The latest Berkshire letter to shareholders (2015) states on page 1: ...the accounting rules that apply to controlled companies are materially different from those used in valuing marketable ...
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1answer
34 views

Dividends Growing Faster than Cost of Capital

If a share's dividends are assumed to be indefinitely growing faster than the cost of capital (discount rate) then the net present value of all future dividends for the share can be shown to be ...
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3answers
621 views

Average Price of a Stock

I realized that most finance and stock screener web sites don't provide the metric of the mean (average) price of the stock over a certain period of time, for example, the mean value of AAPL shares ...
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1answer
110 views

Why are Bank of America and Citi trading so far below book value?

In 2008, a famously wealthy man bet big on Bear Sterns, citing that it was absurd that it was trading below book value. That man is now only slightly wealthy. The lesson was that you should trust book ...
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2answers
86 views

What should I look for when looking for stocks that are 'on-sale'?

Considering the stock market is down these days I want to invest money in mainly Large-Cap Stocks and hold them for the long-term. I was originally looking at P/E ratios being lower than average, but ...
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4answers
424 views

Is it wise to invest in a stock with a large Div yield?

Looking at the stocks for BHP it shows a Div yield of 11.23%. This seems quite appealing to me, despite the fact that the price is going down simply because of the huge interest I would get on my ...
2
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4answers
182 views

Value investing

Does value investing work? More specifically, I've taken Dr. Damodaran's course on valuation (available online at his website) and have read parts of his textbook "Investment Valuation", and am coming ...
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2answers
109 views

why do energy stocks trade at lower prices compared to other sectors?

In researching some additional stocks I want to acquire, I've noticed many energy stocks trade at lower prices and exhibit a large amount of volatility. Why is that despite the fact energy is a basic ...
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1answer
67 views

Which Earnings Figure for Graham's “Stock Selection for the Defensive Investor”?

This question is around Chapter 14 in the Intelligent Investor (Stock Selection for the Defensive Investor). I've read the chapter and I've read blog posts about it. I'm confused. What's confusing me ...
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2answers
89 views

strategy for the out of favour mining sector

Currently 5% of my portfolio is in mining sector. I've watch this decline in the last few years. One could argue that 5% isn't too bad and i should hold on and not sell at the bottom of the cycle. ...
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2answers
73 views

Intrinsic value of non-voting shares which don't pay dividends

What is the intrinsic value of a company's non-voting stock shares which don't pay dividends? My understanding is stock ownership has value in the form of controlling the company or receiving a ...
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1answer
61 views

Why would a stock price raise above an initial tender offer price?

Company X received a tender offer buyout price of $8.50/share. Fast forward 10 days later and the share price has exceeded the $8.50 offered. Is this common and what is happening? It was in the offer ...
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1answer
61 views

Why does a company's stock price affect its ability to raise debt?

I'm asking this question as an investor of stocks in the U.S. Equity and debt are two different things. Sometimes, a company's stock does very poorly for reasons completely unrelated to its ...
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2answers
321 views

What's the most correct way to calculate market cap for multi-class companies?

Yahoo finance shows GOOG as having a market cap of $492.97B, while GOOGL has a market cap of $510.18B. What's Google's total market cap? Is it really $1,003B?
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0answers
27 views

Info about managment compansation schemes in publicly traded companies

How or where could I find info about publicly traded companies about how stock owner friendly their compensation schemes are for their board and officers? I would like this info as a part of my ...
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1answer
86 views

What can one derive, when a near month Index Futures contract price is trading lower than index spot price?

Usually Futures contract price for near month, next month and far month is higher than spot price. Yesterday in Nifty I came across a case wherein March 29-oct-2015 contract was trading at 8268.70 and ...
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1answer
60 views

How to calculate Price/Earnings - Price/Sales - Price/Free Cash Flow for given stock

I have few months of data for some company like opening, high, low, closing, volume . As given at https://www.google.com/finance/historical?q=NYSE%3ABME&ei=DSIeVtGMAYrvuATEsZfACA How to ...
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2answers
119 views

Understanding stock market terminology

I have few months of data for some company like opening, high, low, closing, volume . As given at https://www.google.com/finance/historical?q=NYSE%3ABME&ei=DSIeVtGMAYrvuATEsZfACA Can someone ...
2
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1answer
46 views

What forms (S-1, 8-K, etc) and keywords in news headlines signify dilution?

I'm trying to create a program to scan a news RSS feed for stocks that are in the process of getting diluted so that I do filter the market down to a few stocks and then do extra research on them. My ...
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0answers
50 views

What is the percentage of Merger and Aquistion deals that are actaully completed? [closed]

I am assuming that not all M&A deals announced are completed. There are factors such as anti trust laws and consumer protection agencies that legally prohibit the two companies from completing the ...
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2answers
98 views

Determine share price from S-1 for company that was bought before going public

I would like to determine (roughly) the value of an individual share of common stock based on S-1 (Pre-IPO) filing for a private corp that was acquired instead of going public. The company sale price ...
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2answers
111 views

What's so hard about a mutual fund manager pricing their mutual fund?

An article in today's Wall Street Journal (2015-08-16) titled A New Computer Glitch is Rocking the Mutual Fund Industry is all about how some kind of computer (software?) failure at a company called ...
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20answers
22k views

If a stock doesn't pay dividends, then why is the stock worth anything?

I read somewhere that companies are not required to pay dividends to shareholders (this is correct, yes?). If so, then if company A never pays dividends to its shareholders, then what is the point ...
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0answers
27 views

What statement is more appropriate while evaluating a company? Standalone or Consolidated?

From my understanding, a standalone P/L statement incorporates a firm's profit or loss for the quarter/year, whereas a consolidated P/L statement also incorporates its subsidiaries profit and loss. Is ...
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2answers
154 views

Calculating net investment portion of Discounted Cash Flow (DCF)

I am trying to calculate free cash flow and conduct DCF analysis. How do you calculate the net investment as per DCF Analysis: Forecasting Free Cash Flows | Investopedia for Microsoft in 2012? The ...
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1answer
107 views

How can one tell if a company's quarterly financial report represents a profit or loss?

How should I review an organization's quarterly report to determine if they had a profit or loss in their last quarter? Sample Report
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2answers
299 views

Company wants to sell all of its assets, worth more than share price?

A company is trading at $5 per share, they are a manufacturing company and their land is very valuable. They want to sell out their factories and their land involved, so it looks like they will have ...
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1answer
99 views

How To Interpret Share Prices?

During conversation shares in Google came up as a topic. Out of interest I Googled the share price for Google and was presented the following: Google Inc. (GOOG) -NasdaqGS 523.40 My ...
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2answers
155 views

How come we can find less than 1 Price to Book stocks?

I was wondering, if there is such a stock, why isn't everyone getting it as there is supposedly no risk. For instance, a stock like NYSEARCA:VDE has Price to Book: 0.78. Div yield: 1.99. Growing ...
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1answer
65 views

Book Value vs Market Value of PWT.TO

I'm new to this forum, so please excuse if my formatting or something is wrong. Anyways, I had a question regarding stocks. The particular question is regarding PWT.TO; Penn West Petroleum Ltd. on ...
2
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2answers
319 views

What is the point of owning a stock without dividends if it cannot be resold?

If I were to buy a stock of a business that were to live (and grow steadily) indefinitely, and this stock paid no dividends, and could not be sold back to anyone else, what would be the point of ...
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2answers
492 views

Why would a company like Apple be buying back its own shares?

What is the reason that a company like AAPL is buying back its own shares? Does it have too much cash and it doesn't know what to do with it? So it is returning the cash back to investors?
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4answers
2k views

How to calculate how much a large stock position is really worth?

Let's say, completely hypothetically, that I own 1,000,000 shares in Company X, and their share price is exactly $10.00. Theoretically, this is worth $10 million, but obviously if I wanted to ...
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2answers
121 views

Is forward P/E calculated using current price(if yes, how useful is it)?

From my understanding, F1/F2 P/E is calculated using forward estimated EPS. And It seems to be impossible to predict future price (otherwise everyone just follow the Est. price) However, if it's ...
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1answer
147 views

should the Market Capitalization be equal to the Equity of the firm

I am new in finance and I was wondering the following probably stupid questions that I don't seem to find answer anywhere. When the owner of a firm decides to make its firm public should the Market ...
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5answers
778 views

Why do stocks go up? Is it due to companies performing well, or what else? [duplicate]

I searched for this question but I didn't get any convincing answer. What everyone says is that if a company does well (I assume this means the company has good returns on its projects) then people ...
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1answer
53 views

What's the difference between a company's after-tax profit and their sales/revenue?

Two fundamental analysis formulas have got me confused. One is the EPS (earnings per share) and the other is P/S (price/sales ratio). If I understand the formulas correctly, EPS is calculated by ...
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1answer
169 views

How to evaluate growth stocks

What are good metrics to evaluate growth stocks? I have been following the site buffettsbooks.com and it teaches you how to evaluate value stocks based on Warren Buffet's principles. These are ...
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11answers
11k views

One of my stocks dropped 40% in 2 days, how should I mentally approach this?

Right after the event, I felt shocked and depressed. I've been engaging in stocks for about a year now but I've never encountered such a big jump in such a short time. What I'm planning to do is just ...
2
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4answers
3k views

Why does selling and then rebuying stock not lead to free money?

From what I understand, stock prices go down when large amounts of the stock are sold (thereby lowering the price to attract buyers), and go up when large amounts are bought (vice versa - buyers rise ...
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0answers
94 views

Preference shares vs. common shares and overall holding structure for a public company?

I am trying to understand the overall holding picture for a listed company — like, there can be preference shares, common shares (free float), etc. My questions are: It would be really great ...
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1answer
91 views

Calculation of excess cash for company valuation

I originally mistakenly posted my question as part of another discussion on the topic. It has been immediately transformed into a comment that is unlikely to bring an answer, hence posting it here ...
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3answers
186 views

Are investor's preference for dividends justified?

Think about it. Before you get the dividend, you own the stock of the company. The amount to be distributed to you as dividend is in the coffers of the company. After you get the dividend, the money ...
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2answers
406 views

How would I go about selling the stock of a privately held company?

My grandfather passed years ago and left me with some shares of a California company. The company is not publicly traded and specializes in dividend income for its investors. I have decided it would ...
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1answer
103 views

institutional ownership — why is it so convoluted

Only money.stackexchange can clarify this for me. I'm trying to do due diligence on GoPro (GPRO). From what I can figure out, it has a total float of 123 million shares, of which only 18 million are ...
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1answer
95 views

Pre-valuation of the company [closed]

I am planning to start a company, but it's just an idea with no revenues. Hence, if I approach angel investors 1) What should be the pre- and post-valuation of the company after investors are ready ...
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6answers
5k views

Any difference between buying a few shares of expensive stock or a bunch of cheap stock

I don't have a ton to invest. I have $1,000 to put into a stock and I'm eying 3 of them. One is currently trading at ~$100/share, another at ~$260/share and another at ~$25/share. So I could get ...
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4answers
358 views

Does revenue for a company matter when evaluating stocks?

Company X has annual revenue of 100 million, and net profit of 20 million. Profit margin = 20/100 = 20% Company Y has annal revenue of 500 million, and net profit of 20 million. Profit margin of = 4% ...
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2answers
278 views

Should I only look at P/E ratio when valuing a stock?

A company is earning 40 cents per share and is trading at $6.00. From there I get the P/E ratio to be 15. It does not have much growth potential and it's earnings are relatively stable and has been ...