ElberHaps
03-17-2016,
Hey guys. I am new to the world of investing and am confused on how to properly value a company. my goal (and tell me if I am incorrect) is to find out the value of a company and if it is undervalued in comparison to the stock price purchase stock in said company. I have been trying to figure out how exactly this should be done and Ive heard so much different info its making my head spin.
so if I take a stock that has a market cap of 1.52 billion and I divide that by the current stock price I get a number of just under $40 million (shares outstanding is 40 million so Im not sure weather to take that into account or not?)
when I look at the last ten years net income I get a number of $32 million
the last ten years income is as follows...
62.87M 36.74M 31.13M 23.52M 23.01M 51.69M 31.14M 20.68M 22.93M 22.79M
so this would be telling me the company is overvalued by $8 million? or am I getting this way mixed up??
keep in mind I am VERY new at this so thanks in advance for any help you can give me!
so if I take a stock that has a market cap of 1.52 billion and I divide that by the current stock price I get a number of just under $40 million (shares outstanding is 40 million so Im not sure weather to take that into account or not?)
when I look at the last ten years net income I get a number of $32 million
the last ten years income is as follows...
62.87M 36.74M 31.13M 23.52M 23.01M 51.69M 31.14M 20.68M 22.93M 22.79M
so this would be telling me the company is overvalued by $8 million? or am I getting this way mixed up??
keep in mind I am VERY new at this so thanks in advance for any help you can give me!