Timeline for How can a company trade at a market cap below its cash on hand?
Current License: CC BY-SA 4.0
7 events
| when toggle format | what | by | license | comment | |
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| Mar 19, 2020 at 20:20 | comment | added | Grade 'Eh' Bacon | @Philipp You are implying that there is zero connection to the fundamentals of the business and its share price. Yes, lots of debt of course has an impact on market capitalization. | |
| Mar 19, 2020 at 19:29 | comment | added | David Schwartz | @TracyCramer Right now, there are funds that hold only short-term, ultra-safe investments whose market cap is significantly below their NAV. That only makes sense when you realize that speculation, perception, what other things people can do with their money, and the like are significant price-affecting factors. | |
| Mar 19, 2020 at 19:23 | comment | added | Tracy Cramer | @Philipp, to me that's the real answer. The stock market is just a perceived valuation. It is simply correlated with assets, cash, debt, etc. Educated or ignorant speculation is, to some degree or other, part of the equation. | |
| Mar 19, 2020 at 13:33 | comment | added | Philipp | @GregoryCurrie Directly? No, there is no direct connection between what a company is worth according to its balance sheet and what it is worth according to its market capitalization on the stock exchange. Indirectly by affecting investor psychology? Perhaps. | |
| Mar 19, 2020 at 2:42 | comment | added | Gregory Currie | Does the amount of debt have any impact on market cap calculation? | |
| Mar 19, 2020 at 0:09 | history | edited | David Schwartz | CC BY-SA 4.0 |
added 67 characters in body
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| Mar 18, 2020 at 23:42 | history | answered | David Schwartz | CC BY-SA 4.0 |