Realistic Valuations

Hello you very wonderful and intelligent individuals that make up these forums. I sincerely hope you are having a good week.

I know for instance that Warren Buffett before buying a share, he does various calculations on the stock of a company to see if its undervalued. This could be Total Enterprise Value, which is the total value of the company if you bought it today, compared to the Market Capitalisation of the stock. I please wondered if anyone knows a very good book, which focuses on a variety of these calculations and how to carry them out to see if a stock is undervalued please? If anyone kindly had any thoughts on this i would be forever grateful and thankful for your support with this.

Sending you lots of good wishes and i truly hope you have a wonderful life and have massive success with your investing. Very best wishes to you.  

Comments

  • InvesterJones
    InvesterJones Posts: 638
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    edited 24 October 2023 at 7:48PM


    I know for instance that Warren Buffett before buying a share, he does various calculations on the stock of a company to see if its undervalued. This could be Total Enterprise Value, which is the total value of the company if you bought it today, compared to the Market Capitalisation of the stock. I please wondered if anyone knows a very good book, which focuses on a variety of these calculations and how to carry them out to see if a stock is undervalued please?

    Didn't the investor course you were on recently explain all of that?


     i am doing an investing course, which looks at factors such as how to screen companies initially before you further evaluate them. It looks at metrics like Enterprise Value and other areas. Then how to do a fuller analysis reviewing a company’s Annual Accounts.


  • Prism
    Prism Posts: 3,786
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    Just what are you trying to achieve? Warren Buffett employees thousands of analysts, accountants, maths wizzes and business experts to help him make investment decisons. Many of his investments involve buying and running entire companies. I'm not sure yours and his investing style are all that similar.

    Stop worrying about this stuff and buy a fund like everyone else here does.
  • aroominyork
    aroominyork Posts: 2,765
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    You ask a lot of questions about investing theory, robertbanking. It would be helpful to know where you are starting from, so would you care to tell us how you are currently invested?
  • Thank you very much for all your response, they do mean alot, i am very thankful for the time you took to reply.

    You are correct Prism, i think i am trying to find a perfect setup, screening stocks, then running the most beneficial realistic calculations and then going into further research into a company. I think it is my mind that is looking for new ideas and worrying about different ways of analysing stocks. I thank you very much for your input, it does mean alot, i could be alot better with a Fund. Can i very kindly please ask what Funds you are in or others, so i can research them further please? If you could kindly help with this i would be forever grateful, it would be highly appreciated.

    Thank you very much for your support, while i continue to learn about investing. Wish everyone all the best and enjoy the rest of your week. 
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