Understanding Market Value - Deepstash

Understanding Market Value

A company's market value is a good indication of how investors perceive a business.

Market value is determined by the valuations or multiples accorded by investors to companies, including price-to-sales, price-to-earnings, enterprise value-to-EBITDA, etc. The higher the valuations, the bigger the market value.

58

265 reads

CURATED FROM

IDEAS CURATED BY

pipge

Total food specialist. Friendly webaholic. Coffee fan. Proud analyst. Tv expert. Explorer. Travel nerd. Incurable beer advocate.

The idea is part of this collection:

Introduction to Web 3.0

Learn more about moneyandinvestments with this collection

The differences between Web 2.0 and Web 3.0

The future of the internet

Understanding the potential of Web 3.0

Related collections

Similar ideas to Understanding Market Value

The Price Sales Ratio

The Price Sales Ratio

While using the P/E ratio as a building block is probably the most popular method to value stocks it is far from the only way. Another common technique to valuing stocks is the price/sales ratio. The P/S ratio is determined by dividing a company's market cap -- the total value of all the companie...

Value Investing

Popularized by investors Benjamin Graham & Warren Buffett, value investing is about buying something for less than it is worth. It's based on this idea that you can find undervalued companies (companies with low P/E - price per earnings). It's hard to do it these days:

  • Finding underval...

6. Is it Cheap?

6. Is it Cheap?

  1. This is the kicker. Finding companies that meet the other five criteria is one thing, but determining whether they are undervalued is the most difficult part of value investing. And it's Buffett's most important skill.
  2. To check this, an investor must determine a company's

Read & Learn

20x Faster

without
deepstash

with
deepstash

with

deepstash

Personalized microlearning

100+ Learning Journeys

Access to 200,000+ ideas

Access to the mobile app

Unlimited idea saving

Unlimited history

Unlimited listening to ideas

Downloading & offline access

Supercharge your mind with one idea per day

Enter your email and spend 1 minute every day to learn something new.

Email

I agree to receive email updates