Lux Investing
How do you find a businesses intrinsic value???
I want to invest in some stocks and it seems investing in a buisnss that has a low intrisic value would be good
Public Comments
- The 'easiest' answer to this question (without using techniques like the Capital Asset Pricing Model [CAPM]) is to just look at the company's market cap...Bear in mind this only works for public companies. Market Cap (basically the number of shares outstanding multiplied by the current stock price) will give you a pretty good idea of what the market thinks the company is worth...this is foggy at best and isn't incredibly reliable for tech stocks that tend to be overvalued such as Apple and Google. Hope this helps! Market Caps can easily be found on any finance site (such as Yahoo Finance); just search for the stock symbol or company name; Market Cap will be one of the primary benchmarks given.
