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share valuation !!!
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shinavn
#1 Posted : Thursday, July 04, 2019 6:04:53 AM
Rank: Hello


Joined: 7/4/2019
Posts: 2
Location: vietnam
Hallo Investors.

I need a refresher on how to calculate the fair value of a share(Intrinsic value)
I can remember the P/b ratio=mps/bps.

Can this work well in the market

Shina
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Ebenyo
#2 Posted : Thursday, July 04, 2019 3:00:21 PM
Rank: Veteran


Joined: 4/4/2016
Posts: 1,997
Location: Kitale
shinavn wrote:
Hallo Investors.

I need a refresher on how to calculate the fair value of a share(Intrinsic value)
I can remember the P/b ratio=mps/bps.

Can this work well in the market

Shina



There is no definite formula for ascertaining intrisic value of a company.
Most people use PE(price to earnings).
In reality,forensic audit is the best.
Towards the goal of financial freedom
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guru267
#3 Posted : Thursday, July 04, 2019 4:14:56 PM
Rank: Elder


Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
shinavn wrote:
Hallo Investors.

I need a refresher on how to calculate the fair value of a share(Intrinsic value)
I can remember the P/b ratio=mps/bps.

Can this work well in the market

Shina


The best metrics to use to calculate intrinsic value of a share really depend on the company and industry.

For example P/B ratio will be a more relevant metric when looking at investment/financial entities whereas P/E ratio may be more relevant when looking at service entities with relatively small capex.
Mark 12:29
Deuteronomy 4:16
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sparkly
#4 Posted : Thursday, July 04, 2019 5:59:20 PM
Rank: Elder


Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
If totally in-experienced go with Dividend Yield and PE ratio.

Incorporate Return on Equity and Earnings Growth when valuing growth stocks
Life is short. Live passionately.
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