Main things to look at while evaluating a stock quote?
Being new to investing..What are the main things I should look at when I see a quote? right now i look at the EPS and then if the company offers a dividend or not..What do things like "Margin eligible" and "price to sale" mean? what are the things that would affect your decision while buying stocks?
You’re in the best stage of the game where everything is new and wonderful. But you need to put in the research, study Benjamin Graham’s method and Warren Buffet’s, then extrapolate from there. I can tell you right now EPS can be fudged and Warren Buffet himself says he doesn’t trust them.
The market price is a function of book value and future growth expectations. Therefore, in order to determine future market value you need to determine future book value. You do that by discounting the future value of cash flows back to present day value (research discounted cash flow). Its the method warren buffet uses as well as a slew of other big time investors and the only economically sound valuation principal.
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Six February 13th
You’re in the best stage of the game where everything is new and wonderful. But you need to put in the research, study Benjamin Graham’s method and Warren Buffet’s, then extrapolate from there. I can tell you right now EPS can be fudged and Warren Buffet himself says he doesn’t trust them.
The market price is a function of book value and future growth expectations. Therefore, in order to determine future market value you need to determine future book value. You do that by discounting the future value of cash flows back to present day value (research discounted cash flow). Its the method warren buffet uses as well as a slew of other big time investors and the only economically sound valuation principal.
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