Jan 14, 20080
Valuing a Company from Public Records
The value of a company can be arrived at in a number of ways from records available publicly. Whilst the stock price will let you know what the market thinks a company is worth, it is important for the prospective investor to be able to spot quickly if a stock price is actually underpricing a company.The first way in which analysts will arrive at a value for a company is by comparing the Net Assets of a company to its stock issue. This generally gives a figure which equates to the value of a company if it were taken over, or went into administration, and was broken up and sold off. Follow a simple example thus:
