How to pick a good stock?
I believe in fundamental. One measurement I like is BVPS.
(http://www.investopedia.com/university/ratios/bookvaluepershare.asp)
Book Value Per Share - BV
= | Stockholders Equity - Preferred Stock |
Average Outstanding Shares |
It will be rare and you will be lucky to find one share that is trading below this figure.
In theory this is what is the valuation of a company but Mr Market never rate it such way and prices are usually driven by demand and supply and also emotional.
No comments:
Post a Comment