Valuing a company is more art than science. Tim Bennett explains why and introduces three ways potential predators and investors alike can get started.
• How to value a company using net assets
• How to value a company using multiples
• How to value a company using discounted cash flow
• Warning: the City’s formula for pricing shares is bust
• What is a balance sheet?
• What is the price-to-sales ratio?
• A beginner’s guide to p/e ratios
In this video, Ed Bowsher explains how to calculate a company’s profit margin, why it is the best way to evaluate profitability, and how you can use it when analysing a company.
Hedge funds perform a valuable service by weeding out overvalued shares. In this video, Ed Bowsher explains some of the things they look for when they’re hunting for shares to short.
In his latest video, Ed Bowsher looks at the current ratio, which can help you see whether a company has sufficient resources to pay its bills in the near future.