Value Stocks How to Evaluate Term Paper

Total Length: 558 words ( 2 double-spaced pages)

Total Sources: 0

Page 1 of 2

If one particular company has plenty of liquid assets, which therefore assures its progression in future business ventures, then the company has good potential for investing. However, if the company seems to have more current liabilities than assets and capitol, then the investor should definitely look elsewhere.

There are several ways which investors should judge companies in terms of potential investments. One is to judge a company based on their earnings per share, which is calculated through the earnings of the company in the last four quarters. Revenue-Based Evaluations compares companies based on revenues as related to company costs or long-term debt. Investors should also look at a company's cash-flow, or the amount of capitol which actually passes through a company each quarter after that company withdraws money for the cost of maintaining business.
Another way is to judge based on the equity of a company, which is judging the company for all the physical assets that company has at any one time. Yield-based valuations concentrate on the stock pricing of a company's worth on the marketplace. The last method of evaluation discussed is the member-based valuation, which include the amount of stockholders within any one company.

Through complete analysis of information on a company available to the public, investors can begin to paint a picture of their potential earnings if they were to buy stock within that particular company. The authors at the Motley Fool aim to let potential investors know about all the ways they can assess the potential of companies and therefore also they eventual return they would expect through….....

Show More ⇣


     Open the full completed essay and source list


OR

     Order a one-of-a-kind custom essay on this topic


sample essay writing service

Cite This Resource:

Latest APA Format (6th edition)

Copy Reference
"Value Stocks How To Evaluate" (2008, March 21) Retrieved May 21, 2025, from
https://www.aceyourpaper.com/essays/value-stocks-evaluate-31343

Latest MLA Format (8th edition)

Copy Reference
"Value Stocks How To Evaluate" 21 March 2008. Web.21 May. 2025. <
https://www.aceyourpaper.com/essays/value-stocks-evaluate-31343>

Latest Chicago Format (16th edition)

Copy Reference
"Value Stocks How To Evaluate", 21 March 2008, Accessed.21 May. 2025,
https://www.aceyourpaper.com/essays/value-stocks-evaluate-31343