Stock prices, especially those with high price-earnings ratios, are usually based on future expectations, which often originate from the recommendations of security analysts
by William C. Spaulding
Prices a stock by the sum of its future cash flows discounted by the required rate of return that an investor demands for the risk of owning the stock.
by William C. Spaulding
Stock prices depends on the companys return on equity, which depends on net earnings. But some companies pay most of their earnings as dividends
by William C. Spaulding
Common stock ratios are based on financial data from income statements, balance sheets, or the cash flow statements of financial reports of the company
by William C. Spaulding
One measure to determine whether a stock is a good investment is whether the company is worth at least the value of all the outstanding stock at current market prices...
by William C. Spaulding
Is the inverse of the price-earnings ratio (P/E) of stocks, and equals earnings per share of common stock divided by the market price of the stock.
by William C. Spaulding
One method of estimating the value of an asset or a business is by calculating the discounted cash flow that the asset will earn.
by William C. Spaulding
a catchall phrase that refers to the value of the business over and above the value of its assets.
by William C. Spaulding
Economic value added (EVA) is the spread between a firms return on invested capital (ROIC) and the cost of capital multiplied by the total amount of capital invested.
by William C. Spaulding