Only logged in members can reply and interact with the post.
Join SimilarWorlds for FREE »

Anyone here teaches or studies finance?

BitterSweetPotato · 31-35, F
I study it.
BitterSweetPotato · 31-35, F
@Jersos Nope! BV is not the intrinsic value of shares. The intrinsic value is what an investor/analyst "believes" to be the true value of shares, it could be and is actually quite often different from the book value, as well as from the market price (when the market is not efficient!) The intrinsic value is calculated using so many models (e.g. Free cash flow method) where an investor would make different assumptions, projections and input variables in the model to try and arrive at the intrinsic value of a share to determine whether he will overpay if he buys the share on the market.
Book value is basically an accounting value that appears on the company's balance sheet, it is the equity section, you can't say it is the funds provided by shareholders (it is not entirely wrong but not correct as well as equity contains other components too), so the appropriate way of calculating is is company's assets less its liabilities which gives you the net worth of the company (BV).
Jersos · 26-30, M
Thank you so much! I'm sorry for understanding late. I'm just learning in the class lol
BitterSweetPotato · 31-35, F
@Jersos Glad I could help and I may not be a good teacher too which is why I could not get the information across, I am here if you need anything :)
SW-User
What do you want to know?
Jersos · 26-30, M
@SW-User I want to know how stocks are traded and how do I start trading in stocks, among other questions. I am in undergrad and hence have no experience in this matter
SW-User
@Jersos Read a book called "The Little book that beats the market by Joel Greenblatt". It's very easy and understandable.
Jersos · 26-30, M
@SW-User Thank you for this! I'm gonna check it out on amazon.

 
Post Comment